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Aes Corporation B Global Sourcing Initiative Generic Strategy Case Study Help


Aes Corporation B Global Sourcing Initiative Generic Strategy Generic Strategy Case Study HelpIn this section we would be assessing the generic techniques that have actually been utilized by Aes Corporation B Global Sourcing Initiative Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can lead to a sustainable development method for Aes Corporation B Global Sourcing Initiative Generic Strategy.

Focus Strategy: Niche Marketing

We have talked about three possible options for Aes Corporation B Global Sourcing Initiative Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these alternatives, a conversation concerning why Aes Corporation B Global Sourcing Initiative Generic Strategy needs an alternative profits growth design is shared listed below.

We have already discussed how Aes Corporation B Global Sourcing Initiative Generic Strategy has three income sources including its theatre operations, movie circulation and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe inconsistency in terms of profitability and development in earnings. A fall in net income specifically in 2006 and 2007 recommends that the business requires to concentrate on areas of development which can guarantee consistency in revenue growth and profitability.

As we check out each of the income sources for Aes Corporation B Global Sourcing Initiative Generic Strategy, we can see how the system-leasing company of Aes Corporation B Global Sourcing Initiative Generic Strategy has reliance on the growth of theatres and even then there is a restriction in regards to the number 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 Aes Corporation B Global Sourcing Initiative Generic Strategy operates. Together with that, expanding the number of theatres may result in high capital costs for Aes Corporation B Global Sourcing Initiative Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment may result in lower net profitability.

Franchises or Alliances:

We have actually already discussed the debt to possessions, liquidity and success of the business in the ratio analysis done earlier to evaluate the internal financial position of Aes Corporation B Global Sourcing Initiative Generic Strategy which would give further clearness relating to the fact that increasing the long term liability is not a feasible choice for development. One possible alternative that can be examined even more is to provide franchises of Aes Corporation B Global Sourcing Initiative Generic Strategy or to have alliances with other business which can promote growth with very little capital expense.

Documentaries:

If we explore Aes Corporation B Global Sourcing Initiative Generic Strategy position in its movie distribution company, we can see how there is a greater orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the movie distribution organisation suggests limiting the number of releases to a few documentaries that might not be bring in more than the present audience.