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Airline Security Generic Strategy Case Study Help


Airline Security Generic Strategy Generic Strategy Case Study HelpIn this area we would be assessing the generic techniques that have been used by Airline Security Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can lead to a sustainable growth strategy for Airline Security Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic strategies, businesses have the alternative of operating as specific niche gamers where they concentrate on a smaller sector of the market. Airline Security Generic Strategy has the option of operating as a specific niche player by making big format films and systems instead of catering to the mass market. We have talked about three possible options for Airline Security Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these options, a conversation regarding why Airline Security Generic Strategy needs an alternative profits growth model is shared listed below.

We have actually currently discussed how Airline Security Generic Strategy has 3 earnings sources including its theatre operations, movie distribution and system leasing. As we look at the income statements for 2004 to 2007, we can observe inconsistency in regards to success and growth in earnings. A fall in net income specifically in 2006 and 2007 recommends that business needs to concentrate on locations of development which can assure consistency in profits growth and success.

As we explore each of the earnings sources for Airline Security Generic Strategy, we can see how the system-leasing service of Airline Security Generic Strategy has dependency on the expansion of theatres and even then there is a limitation in terms of the number of theatres that can be opened up.

As far as the theatre operations are worried, revenues from this source are dependent on the number of theatres that Airline Security Generic Strategy runs. Along with that, broadening the number of theatres might result in high capital costs for Airline Security Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment may cause lower net profitability.

Franchises or Alliances:

We can see how the business has a long term debt of $ 160,000,000 if we look at Airline Security Generic Strategy balance sheet. We have actually already gone over the financial obligation to possessions, liquidity and success of the business in the ratio analysis done earlier to evaluate the internal monetary position of Airline Security Generic Strategy which would give more clarity concerning the reality that increasing the long term liability is not a possible alternative for development. This brings us to the conclusion that Airline Security Generic Strategy is presently in a position where it requires to lower its reliability on profits from theatre operations and needs to broaden through alternative choices which require lower capital investment and assure higher net profitability. One possible alternative that can be examined further is to provide franchises of Airline Security Generic Strategy or to have alliances with other business which can promote expansion with minimal capital investment. Nevertheless, the possibility of losing a total hold over the quality of services being used may avoid more orientation in this direction.

Documentaries:

If we explore Airline Security Generic Strategy position in its film distribution business, we can see how there is a greater orientation towards producing documentary films. Focusing on documentaries in terms of broadening the film distribution company means restricting the number of releases to a couple of documentaries that might not be bring in more than the existing audience.