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Boston Beer Co Inc Generic Strategy Case Study Help


Boston Beer Co Inc Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic strategies that have actually been utilized by Boston Beer Co Inc Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable growth method for Boston Beer Co Inc Generic Strategy.

Focus Strategy: Niche Marketing

We have actually talked about 3 possible options for Boston Beer Co Inc Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these options, a discussion regarding why Boston Beer Co Inc Generic Strategy needs an alternative earnings development model is shared below.

We have currently talked about how Boston Beer Co Inc Generic Strategy has 3 revenue 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 terms of profitability and growth in earnings. A fall in earnings specifically in 2006 and 2007 recommends that the business needs to concentrate on locations of growth which can guarantee consistency in earnings development and profitability.

As we check out each of the revenue sources for Boston Beer Co Inc Generic Strategy, we can see how the system-leasing company of Boston Beer Co Inc Generic Strategy has dependency on the expansion 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 worried, earnings from this source depend on the number of theatres that Boston Beer Co Inc Generic Strategy runs. Along with that, expanding the number of theatres might cause high capital expenses for Boston Beer Co Inc Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment might cause lower net profitability.

Franchises or Alliances:

We can see how the company has a long term debt of $ 160,000,000 if we look at Boston Beer Co Inc Generic Strategy balance sheet. We have already discussed the debt to properties, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal monetary position of Boston Beer Co Inc Generic Strategy which would offer further clarity relating to the reality that increasing the long term liability is not a practical choice for growth. This brings us to the conclusion that Boston Beer Co Inc Generic Strategy is presently in a position where it needs to decrease its dependability on earnings from theatre operations and needs to broaden through alternative choices which need lower capital investment and assure higher net profitability. One possible alternative that can be examined even more is to offer franchises of Boston Beer Co Inc 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 provided might prevent further orientation in this direction.

Documentaries:

If we explore Boston Beer Co Inc Generic Strategy position in its movie distribution business, we can see how there is a greater orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the film distribution service indicates limiting the number of releases to a few documentaries that might not be bring in more than the present audience.