WhatsApp

Ashland Oil Inc Trouble At Floreffe C Generic Strategy Case Study Help


Ashland Oil Inc Trouble At Floreffe C Generic Strategy Generic Strategy Case Study HelpIn this area we would be assessing the generic strategies that have actually been utilized by Ashland Oil Inc Trouble At Floreffe C Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can cause a sustainable growth method for Ashland Oil Inc Trouble At Floreffe C Generic Strategy.

Focus Strategy: Niche Marketing

We have actually talked about three possible options for Ashland Oil Inc Trouble At Floreffe C Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these alternatives, a conversation concerning why Ashland Oil Inc Trouble At Floreffe C Generic Strategy requires an alternative profits development model is shared listed below.

We have currently talked about how Ashland Oil Inc Trouble At Floreffe C Generic Strategy has 3 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 disparity in regards to success and growth in revenues. A fall in net income especially in 2006 and 2007 suggests that business needs to concentrate on locations of development which can assure consistency in revenue growth and profitability.

As we explore each of the earnings sources for Ashland Oil Inc Trouble At Floreffe C Generic Strategy, we can see how the system-leasing organisation of Ashland Oil Inc Trouble At Floreffe C Generic Strategy has reliance 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 worried, profits from this source are dependent on the number of theatres that Ashland Oil Inc Trouble At Floreffe C Generic Strategy operates. Along with that, broadening the variety of theatres may lead to high capital expenses for Ashland Oil Inc Trouble At Floreffe C Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense may cause lower net profitability.

Franchises or Alliances:

If we look at Ashland Oil Inc Trouble At Floreffe C 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 properties, liquidity and success of the company in the ratio analysis done earlier to evaluate the internal monetary position of Ashland Oil Inc Trouble At Floreffe C Generic Strategy which would offer additional clarity relating to the reality that increasing the long term liability is not a practical alternative for development. This brings us to the conclusion that Ashland Oil Inc Trouble At Floreffe C Generic Strategy is currently in a position where it needs to minimize its reliability on earnings from theatre operations and requires to broaden through alternative options which need lower capital expense and guarantee greater net profitability. One possible choice that can be assessed further is to give franchises of Ashland Oil Inc Trouble At Floreffe C Generic Strategy or to have alliances with other companies which can promote growth with very little capital investment. Nevertheless, the possibility of losing a complete hold over the quality of services being used might prevent additional orientation in this direction.

Documentaries:

If we explore Ashland Oil Inc Trouble At Floreffe C Generic Strategy position in its movie circulation company, we can see how there is a greater orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the movie circulation business means restricting the number of releases to a couple of documentaries that might not be bring in more than the present audience.