In this area we would be examining the generic strategies that have been utilized by Cartwright Lumber Co Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable growth strategy for Cartwright Lumber Co Generic Strategy.
We have discussed 3 possible options for Cartwright Lumber Co Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these alternatives, a conversation concerning why Cartwright Lumber Co Generic Strategy requires an alternative profits growth design is shared listed below.
We have currently discussed how Cartwright Lumber Co Generic Strategy has three profits sources including its theatre operations, movie distribution and system leasing. As we take a look at the earnings statements for 2004 to 2007, we can observe disparity in regards to success and growth in revenues. A fall in earnings especially in 2006 and 2007 recommends that the business requires to concentrate on locations of growth which can promise consistency in income development and profitability.
As we explore each of the revenue sources for Cartwright Lumber Co Generic Strategy, we can see how the system-leasing organisation of Cartwright Lumber Co Generic Strategy has reliance on the growth of theatres and even then there is a limitation in terms of the number of theatres that can be opened up.
As far as the theatre operations are worried, incomes from this source depend on the number of theatres that Cartwright Lumber Co Generic Strategy operates. In addition to that, broadening the variety of theatres might cause high capital expenses for Cartwright Lumber Co Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense may result in lower net profitability.