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Coca Cola Company Accounting For Investments In Bottlers Generic Strategy Case Study Help


Coca Cola Company Accounting For Investments In Bottlers Generic Strategy Generic Strategy Case Study HelpIn this section we would be assessing the generic strategies that have been used by Coca Cola Company Accounting For Investments In Bottlers Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can result in a sustainable development technique for Coca Cola Company Accounting For Investments In Bottlers Generic Strategy.

Focus Strategy: Niche Marketing

As per Michael porter's generic strategies, services have the option of operating as niche gamers where they focus on a smaller section of the market. Coca Cola Company Accounting For Investments In Bottlers Generic Strategy has the choice of operating as a specific niche gamer by making big format films and systems rather than dealing with the mass market. We have gone over 3 possible alternatives for Coca Cola Company Accounting For Investments In Bottlers Generic Strategy which can be pursued in regards to specific niche marketing. Before we look at these alternatives, a discussion relating to why Coca Cola Company Accounting For Investments In Bottlers Generic Strategy needs an alternative profits development design is shared below.

We have currently gone over how Coca Cola Company Accounting For Investments In Bottlers Generic Strategy has 3 income sources including its theatre operations, movie circulation and system leasing. As we look at the income statements for 2004 to 2007, we can observe disparity in regards to profitability and development in incomes. A fall in net income particularly in 2006 and 2007 recommends that business needs to focus on areas of development which can promise consistency in revenue development and profitability.

As we explore each of the revenue sources for Coca Cola Company Accounting For Investments In Bottlers Generic Strategy, we can see how the system-leasing company of Coca Cola Company Accounting For Investments In Bottlers Generic Strategy has dependence on the growth of theatres and even then there is a constraint in terms of the variety of theatres that can be opened.

As far as the theatre operations are worried, revenues from this source depend on the variety of theatres that Coca Cola Company Accounting For Investments In Bottlers Generic Strategy runs. In addition to that, expanding the variety of theatres may result in high capital expenses for Coca Cola Company Accounting For Investments In Bottlers Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense may cause lower net success.

Franchises or Alliances:

We can see how the company has a long term debt of $ 160,000,000 if we look at Coca Cola Company Accounting For Investments In Bottlers Generic Strategy balance sheet. We have currently talked about the financial obligation to properties, liquidity and profitability of the business in the ratio analysis done earlier to evaluate the internal financial position of Coca Cola Company Accounting For Investments In Bottlers Generic Strategy which would offer additional clearness concerning the truth that increasing the long term liability is not a possible alternative for development. This brings us to the conclusion that Coca Cola Company Accounting For Investments In Bottlers Generic Strategy is currently in a position where it requires to lower its reliability on profits from theatre operations and requires to expand through alternative options which need lower capital expense and assure greater net success. One possible choice that can be examined further is to offer franchises of Coca Cola Company Accounting For Investments In Bottlers Generic Strategy or to have alliances with other companies which can promote expansion with very little capital investment. The possibility of losing a complete hold over the quality of services being offered might prevent additional orientation in this direction.

Documentaries:

We can see how there is a higher orientation towards producing documentary films if we explore Coca Cola Company Accounting For Investments In Bottlers Generic Strategy position in its film distribution business. This does guarantee blood circulation Hollywood films which might lose their effect after the preliminary launch period, the fact still stays that documentaries do not pledge income development particularly as the market share for these documentaries is restricted to the same section. While Hollywood films are made in various category, they likewise provide the possibility of generating high profits within the preliminary days of screening. Focusing on documentaries in terms of expanding the film distribution company suggests restricting the number of releases to a couple of documentaries that might not be bring in more than the present audience. This highlights the reality that in order to bring in a greater number of audiences to Coca Cola Company Accounting For Investments In Bottlers Generic Strategy theatres, it is important to increase the number of movies that are released under Coca Cola Company Accounting For Investments In Bottlers Generic Strategy name.