Colby General Hospital C Generic Strategy Case Study Help
In this area we would be assessing the generic methods that have actually been utilized by Colby General Hospital C Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can lead to a sustainable development technique for Colby General Hospital C Generic Strategy.
Focus Strategy: Niche Marketing
We have actually gone over three possible alternatives for Colby General Hospital C Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these alternatives, a conversation relating to why Colby General Hospital C Generic Strategy requires an alternative revenue growth model is shared listed below.
We have actually currently talked about how Colby General Hospital C Generic Strategy has 3 earnings sources including its theatre operations, movie circulation and system leasing. As we look at the earnings statements for 2004 to 2007, we can observe inconsistency in regards to success and growth in earnings. A fall in earnings specifically in 2006 and 2007 recommends that business needs to concentrate on locations of growth which can assure consistency in earnings development and profitability.
As we explore each of the profits sources for Colby General Hospital C Generic Strategy, we can see how the system-leasing organisation of Colby General Hospital C Generic Strategy has dependence on the growth of theatres and even then there is a constraint in regards to the number of theatres that can be opened.
As far as the theatre operations are worried, profits from this source are dependent on the number of theatres that Colby General Hospital C Generic Strategy runs. In addition to that, expanding the variety of theatres might cause high capital costs for Colby General Hospital C Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense might lead to lower net profitability.
Franchises or Alliances:
If we take a look at Colby General Hospital C Generic Strategy balance sheet, we can see how the company has a long term debt of $ 160,000,000. We have already gone over the debt to assets, liquidity and profitability of the company in the ratio analysis done earlier to assess the internal financial position of Colby General Hospital C Generic Strategy which would offer additional clearness concerning the fact that increasing the long term liability is not a feasible choice for growth. This brings us to the conclusion that Colby General Hospital C Generic Strategy is presently in a position where it requires to reduce its reliability on profits from theatre operations and needs to expand through alternative options which require lower capital investment and assure higher net profitability. One possible option that can be evaluated further is to give franchises of Colby General Hospital C Generic Strategy or to have alliances with other business which can promote growth with minimal capital expenditure. Nevertheless, the possibility of losing a total hold over the quality of services being used may avoid more orientation in this direction.
We can see how there is a greater orientation towards producing documentary films if we check out Colby General Hospital C Generic Strategy position in its film distribution business. Although this does promise blood circulation Hollywood motion pictures which might lose their impact after the initial launch duration, the fact still stays that documentaries do not pledge revenue development specifically as the market share for these documentaries is restricted to the exact same sector. While Hollywood motion pictures are made in various genre, they likewise offer the possibility of creating high revenues within the initial days of screening. So focusing on documentaries in terms of broadening the movie circulation service suggests limiting the number of releases to a few documentaries that may not be attracting more than the current audience. This highlights the truth that in order to attract a greater number of audiences to Colby General Hospital C Generic Strategy theatres, it is essential to increase the variety of films that are released under Colby General Hospital C Generic Strategy name.