In this section we would be examining the generic strategies that have been utilized by Cellular Service Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can lead to a sustainable development technique for Cellular Service Generic Strategy.
Based on Michael porter's generic strategies, businesses have the option of operating as niche players where they focus on a smaller section of the market. Cellular Service Generic Strategy has the choice of operating as a specific niche player by making big format movies and systems rather than accommodating the mass market. We have discussed 3 possible alternatives for Cellular Service Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these alternatives, a conversation relating to why Cellular Service Generic Strategy requires an alternative profits growth design is shared below.
We have already talked about how Cellular Service Generic Strategy has three income sources including its theatre operations, movie distribution and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe disparity in regards to success and development in earnings. A fall in earnings specifically in 2006 and 2007 recommends that the business requires to concentrate on areas of development which can promise consistency in profits growth and success.
As we check out each of the earnings sources for Cellular Service Generic Strategy, we can see how the system-leasing service of Cellular Service Generic Strategy has dependency on the expansion of theatres and even then there is a constraint in regards to the variety of theatres that can be opened up.
As far as the theatre operations are concerned, revenues from this source are dependent on the variety of theatres that Cellular Service Generic Strategy operates. Together with that, broadening the number of theatres might result in high capital costs for Cellular Service Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment may result in lower net profitability.