Aqrs Momentum Funds B Generic Strategy Case Study Help
In this area we would be examining the generic strategies that have been used by Aqrs Momentum Funds B Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable growth strategy for Aqrs Momentum Funds B Generic Strategy.
Focus Strategy: Niche Marketing
As per Michael porter's generic strategies, companies have the alternative of operating as specific niche gamers where they focus on a smaller sized section of the marketplace. Aqrs Momentum Funds B Generic Strategy has the option of operating as a specific niche player by making big format films and systems rather than accommodating the mass market. We have gone over three possible options for Aqrs Momentum Funds B Generic Strategy which can be pursued in regards to specific niche marketing. Prior to we take a look at these options, a discussion relating to why Aqrs Momentum Funds B Generic Strategy needs an alternative earnings growth design is shared below.
We have already gone over how Aqrs Momentum Funds B Generic Strategy has three revenue sources including its theatre operations, film distribution and system leasing. As we take a look at the income declarations for 2004 to 2007, we can observe inconsistency in terms of success and growth in incomes. A fall in earnings especially in 2006 and 2007 recommends that business requires to focus on locations of growth which can promise consistency in profits development and success.
As we explore each of the earnings sources for Aqrs Momentum Funds B Generic Strategy, we can see how the system-leasing business of Aqrs Momentum Funds B Generic Strategy has dependency on the growth of theatres and even then there is a constraint in terms of the variety of theatres that can be opened.
As far as the theatre operations are concerned, incomes from this source are dependent on the number of theatres that Aqrs Momentum Funds B Generic Strategy runs. Along with that, broadening the number of theatres may result in high capital costs for Aqrs Momentum Funds B Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment may cause lower net success.
Franchises or Alliances:
If we take a look at Aqrs Momentum Funds B Generic Strategy balance sheet, we can see how the company has a long term financial obligation of $ 160,000,000. We have already talked about the debt to assets, liquidity and profitability of the business in the ratio analysis done earlier to evaluate the internal financial position of Aqrs Momentum Funds B Generic Strategy which would offer further clearness relating to the truth that increasing the long term liability is not a feasible option for growth. This brings us to the conclusion that Aqrs Momentum Funds B Generic Strategy is presently in a position where it requires to minimize its dependability on profits from theatre operations and needs to expand through alternative choices which require lower capital expense and promise higher net success. One possible alternative that can be examined further is to provide franchises of Aqrs Momentum Funds B Generic Strategy or to have alliances with other companies which can promote growth with minimal capital investment. Nevertheless, the possibility of losing a complete hold over the quality of services being provided might prevent additional orientation in this direction.
We can see how there is a higher orientation towards producing documentary films if we explore Aqrs Momentum Funds B Generic Strategy position in its movie circulation organisation. Although this does guarantee blood circulation Hollywood motion pictures which might lose their effect after the preliminary launch period, the reality still stays that documentaries do not guarantee profits development especially as the market share for these documentaries is restricted to the same section. While Hollywood movies are made in different category, they likewise use the possibility of creating high earnings within the preliminary days of screening. So focusing on documentaries in regards to broadening the movie distribution organisation means limiting the variety of releases to a few documentaries that might not be attracting more than the current audience. This highlights the fact that in order to attract a greater number of audiences to Aqrs Momentum Funds B Generic Strategy theatres, it is very important to increase the variety of motion pictures that are launched under Aqrs Momentum Funds B Generic Strategy name.