In this area we would be examining the generic strategies that have been used by Acme Hardware Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can cause a sustainable development method for Acme Hardware Generic Strategy.
We have actually talked about 3 possible alternatives for Acme Hardware Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these alternatives, a conversation regarding why Acme Hardware Generic Strategy requires an alternative earnings growth design is shared below.
We have currently talked about how Acme Hardware Generic Strategy has 3 earnings sources including its theatre operations, film distribution and system leasing. As we look at the income declarations for 2004 to 2007, we can observe disparity in regards to success and development in revenues. A fall in earnings particularly in 2006 and 2007 suggests that the business requires to concentrate on areas of growth which can promise consistency in income development and profitability.
As we explore each of the income sources for Acme Hardware Generic Strategy, we can see how the system-leasing service of Acme Hardware Generic Strategy has dependency on the growth of theatres and even then there is a limitation in terms of the variety of theatres that can be opened up.
As far as the theatre operations are concerned, profits from this source are dependent on the variety of theatres that Acme Hardware Generic Strategy operates. In addition to that, expanding the number of theatres might lead to high capital expenses for Acme Hardware Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment may lead to lower net profitability.