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Aes Corporation A Global Sourcing Initiative Generic Strategy Case Study Help


Aes Corporation A Global Sourcing Initiative Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic techniques that have been utilized by Aes Corporation A Global Sourcing Initiative Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can lead to a sustainable growth technique for Aes Corporation A Global Sourcing Initiative Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic techniques, companies have the alternative of operating as specific niche gamers where they focus on a smaller sized sector of the market. Aes Corporation A Global Sourcing Initiative Generic Strategy has the choice of operating as a niche player by making big format films and systems instead of accommodating the mass market. We have actually talked about 3 possible alternatives for Aes Corporation A Global Sourcing Initiative Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these alternatives, a discussion relating to why Aes Corporation A Global Sourcing Initiative Generic Strategy needs an alternative revenue development model is shared below.

We have actually already discussed how Aes Corporation A Global Sourcing Initiative Generic Strategy has three profits 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 disparity in regards to profitability and growth in earnings. A fall in earnings especially in 2006 and 2007 recommends that business needs to focus on locations of development which can assure consistency in revenue development and profitability.

As we check out each of the profits sources for Aes Corporation A Global Sourcing Initiative Generic Strategy, we can see how the system-leasing business of Aes Corporation A Global Sourcing Initiative Generic Strategy has dependence on the growth of theatres and even then there is a restriction in terms of the number of theatres that can be opened.

As far as the theatre operations are worried, revenues from this source are dependent on the variety of theatres that Aes Corporation A Global Sourcing Initiative Generic Strategy operates. Together with that, expanding the number of theatres may result in high capital expenses for Aes Corporation A Global Sourcing Initiative Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment may result in lower net profitability.

Franchises or Alliances:

We have actually currently discussed the debt to assets, liquidity and profitability of the company in the ratio analysis done earlier to assess the internal financial position of Aes Corporation A Global Sourcing Initiative Generic Strategy which would offer further clearness regarding the fact that increasing the long term liability is not a practical option for development. One possible alternative that can be examined further is to give franchises of Aes Corporation A Global Sourcing Initiative Generic Strategy or to have alliances with other business which can promote growth with minimal capital expense.

Documentaries:

If we explore Aes Corporation A Global Sourcing Initiative Generic Strategy position in its film distribution service, we can see how there is a greater orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the movie distribution organisation implies restricting the number of releases to a couple of documentaries that might not be attracting more than the existing audience.