In 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.
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.