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


Ashland Oil Inc Trouble At Floreffe D Generic Strategy Generic Strategy Case Study HelpIn this area we would be examining the generic strategies that have been used by Ashland Oil Inc Trouble At Floreffe D Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can cause a sustainable growth technique for Ashland Oil Inc Trouble At Floreffe D Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic methods, companies have the option of operating as specific niche players where they concentrate on a smaller sized section of the market. Ashland Oil Inc Trouble At Floreffe D Generic Strategy has the option of operating as a niche player by making big format films and systems instead of accommodating the mass market. We have actually discussed three possible options for Ashland Oil Inc Trouble At Floreffe D Generic Strategy which can be pursued in terms of niche marketing. Before we look at these alternatives, a discussion relating to why Ashland Oil Inc Trouble At Floreffe D Generic Strategy needs an alternative income development model is shared listed below.

We have actually already gone over how Ashland Oil Inc Trouble At Floreffe D Generic Strategy has three income sources including its theatre operations, film distribution and system leasing. As we look at the earnings statements for 2004 to 2007, we can observe disparity in regards to success and growth in earnings. A fall in earnings specifically in 2006 and 2007 suggests that business requires to focus on locations of development which can assure consistency in income growth and profitability.

As we check out each of the profits sources for Ashland Oil Inc Trouble At Floreffe D Generic Strategy, we can see how the system-leasing company of Ashland Oil Inc Trouble At Floreffe D Generic Strategy has dependence on the expansion of theatres and even then there is a constraint in regards to the number of theatres that can be opened.

As far as the theatre operations are concerned, revenues from this source depend on the number of theatres that Ashland Oil Inc Trouble At Floreffe D Generic Strategy runs. Together with that, broadening the variety of theatres might result in high capital expenses for Ashland Oil Inc Trouble At Floreffe D Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense may result in lower net profitability.

Franchises or Alliances:

If we look at Ashland Oil Inc Trouble At Floreffe D Generic Strategy balance sheet, we can see how the company has a long term financial obligation of $ 160,000,000. We have actually already discussed the financial obligation to assets, liquidity and profitability of the business in the ratio analysis done earlier to evaluate the internal financial position of Ashland Oil Inc Trouble At Floreffe D Generic Strategy which would give more clearness concerning the truth that increasing the long term liability is not a practical option for development. This brings us to the conclusion that Ashland Oil Inc Trouble At Floreffe D Generic Strategy is currently in a position where it requires to minimize its dependability on earnings from theatre operations and requires to expand through alternative choices which need lower capital investment and assure greater net profitability. One possible option that can be assessed even more is to provide franchises of Ashland Oil Inc Trouble At Floreffe D Generic Strategy or to have alliances with other business which can promote growth with minimal capital investment. Nevertheless, the possibility of losing a total hold over the quality of services being offered may prevent further orientation in this direction.

Documentaries:

If we check out Ashland Oil Inc Trouble At Floreffe D Generic Strategy position in its movie distribution company, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the movie distribution organisation implies restricting the number of releases to a couple of documentaries that may not be bring in more than the present audience.