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Colby General Hospital B Generic Strategy Case Study Help


Colby General Hospital B Generic Strategy Generic Strategy Case Study HelpIn this area we would be assessing the generic strategies that have been utilized by Colby General Hospital B Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can result in a sustainable growth strategy for Colby General Hospital B Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic strategies, companies have the option of operating as specific niche gamers where they focus on a smaller sized section of the marketplace. Colby General Hospital B Generic Strategy has the option of operating as a specific niche gamer by making big format films and systems rather than catering to the mass market. We have gone over 3 possible options for Colby General Hospital B Generic Strategy which can be pursued in regards to specific niche marketing. Before we look at these options, a conversation concerning why Colby General Hospital B Generic Strategy needs an alternative earnings development model is shared listed below.

We have already gone over how Colby General Hospital B Generic Strategy has 3 income 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 regards to profitability and growth in earnings. A fall in net income specifically in 2006 and 2007 recommends that the business requires to concentrate on areas of development which can assure consistency in income growth and profitability.

As we check out each of the earnings sources for Colby General Hospital B Generic Strategy, we can see how the system-leasing service of Colby General Hospital B Generic Strategy has dependence on the growth of theatres and even then there is a limitation in terms of the number 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 Colby General Hospital B Generic Strategy runs. Together with that, broadening the variety of theatres may result in high capital expenses for Colby General Hospital B Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense may lead to lower net success.

Franchises or Alliances:

If we look at Colby General Hospital B Generic Strategy balance sheet, we can see how the business has a long term debt of $ 160,000,000. We have actually already gone over the financial obligation to possessions, liquidity and profitability of the company in the ratio analysis done earlier to examine the internal financial position of Colby General Hospital B Generic Strategy which would give more clearness regarding the truth that increasing the long term liability is not a practical choice for growth. This brings us to the conclusion that Colby General Hospital B Generic Strategy is presently in a position where it requires to minimize its reliability on profits from theatre operations and needs to expand through alternative options which need lower capital expense and assure greater net profitability. One possible alternative that can be evaluated even more is to provide franchises of Colby General Hospital B Generic Strategy or to have alliances with other business which can promote growth with very little capital investment. However, the possibility of losing a total hold over the quality of services being used may prevent more orientation in this direction.

Documentaries:

If we check out Colby General Hospital B Generic Strategy position in its film distribution business, we can see how there is a greater orientation towards producing documentary films. Focusing on documentaries in terms of broadening the film distribution company means restricting the number of releases to a couple of documentaries that might not be attracting more than the present audience.