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Tata Tea Limited C Generic Strategy Case Study Help


Tata Tea Limited C Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic strategies that have actually been utilized by Tata Tea Limited C Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can lead to a sustainable development strategy for Tata Tea Limited C Generic Strategy.

Focus Strategy: Niche Marketing

We have actually discussed three possible alternatives for Tata Tea Limited C Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these alternatives, a discussion relating to why Tata Tea Limited C Generic Strategy needs an alternative revenue development design is shared below.

We have currently discussed how Tata Tea Limited C Generic Strategy has 3 earnings sources including its theatre operations, film circulation and system leasing. As we take a look at the earnings statements for 2004 to 2007, we can observe inconsistency in regards to profitability and development in profits. A fall in net income particularly in 2006 and 2007 recommends that the business needs to concentrate on locations of growth which can promise consistency in income growth and profitability.

As we check out each of the profits sources for Tata Tea Limited C Generic Strategy, we can see how the system-leasing business of Tata Tea Limited C Generic Strategy has dependence on the expansion of theatres and even then there is a constraint in regards to the variety of theatres that can be opened.

As far as the theatre operations are worried, earnings from this source are dependent on the number of theatres that Tata Tea Limited C Generic Strategy operates. Together with that, expanding the number of theatres may lead to high capital costs for Tata Tea Limited C Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might cause lower net profitability.

Franchises or Alliances:

If we look at Tata Tea Limited C Generic Strategy balance sheet, we can see how the business has a long term financial obligation of $ 160,000,000. We have actually already gone over the debt to possessions, liquidity and profitability of the business in the ratio analysis done earlier to evaluate the internal monetary position of Tata Tea Limited C Generic Strategy which would give more clearness concerning the reality that increasing the long term liability is not a practical option for development. This brings us to the conclusion that Tata Tea Limited C Generic Strategy is currently in a position where it needs to minimize its dependability on income from theatre operations and requires to broaden through alternative options which need lower capital expense and assure greater net profitability. One possible choice that can be examined further is to provide franchises of Tata Tea Limited C Generic Strategy or to have alliances with other business which can promote growth with minimal capital expenditure. However, the possibility of losing a complete hold over the quality of services being provided may avoid further orientation in this direction.

Documentaries:

If we explore Tata Tea Limited C Generic Strategy position in its movie circulation service, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the movie distribution organisation means limiting the number of releases to a few documentaries that might not be drawing in more than the existing audience.