In this section we would be evaluating the generic strategies that have actually been used by Barrington High School Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can result in a sustainable growth technique for Barrington High School Generic Strategy.
According to Michael porter's generic methods, businesses have the alternative of operating as specific niche players where they concentrate on a smaller sized section of the marketplace. Barrington High School Generic Strategy has the choice of operating as a specific niche gamer by making big format movies and systems rather than accommodating the mass market. We have talked about 3 possible alternatives for Barrington High School Generic Strategy which can be pursued in regards to niche marketing. Before we look at these options, a conversation concerning why Barrington High School Generic Strategy needs an alternative profits growth model is shared below.
We have already discussed how Barrington High School Generic Strategy has 3 income sources including its theatre operations, movie distribution and system leasing. As we take a look at the income declarations for 2004 to 2007, we can observe disparity in terms of profitability and growth in profits. A fall in net income especially in 2006 and 2007 suggests that business needs to focus on areas of development which can assure consistency in earnings development and success.
As we check out each of the profits sources for Barrington High School Generic Strategy, we can see how the system-leasing company of Barrington High School Generic Strategy has reliance on the growth of theatres and even then there is a restriction in regards to the variety of theatres that can be opened.
As far as the theatre operations are concerned, incomes from this source depend on the number of theatres that Barrington High School Generic Strategy runs. Along with that, broadening the variety of theatres may lead to high capital costs for Barrington High School Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might lead to lower net success.