Countrywide Plc Generic Strategy Case Study Help
In this section we would be examining the generic methods that have actually been used by Countrywide Plc Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can result in a sustainable growth strategy for Countrywide Plc Generic Strategy.
Focus Strategy: Niche Marketing
We have discussed 3 possible options for Countrywide Plc Generic Strategy which can be pursued in terms of niche marketing. Before we look at these options, a discussion relating to why Countrywide Plc Generic Strategy needs an alternative income growth design is shared listed below.
We have actually already discussed how Countrywide Plc Generic Strategy has three income sources including its theatre operations, film circulation and system leasing. As we take a look at the earnings declarations for 2004 to 2007, we can observe inconsistency in regards to profitability and growth in incomes. A fall in net income particularly in 2006 and 2007 recommends that business requires to concentrate on locations of growth which can promise consistency in profits development and profitability.
As we explore each of the revenue sources for Countrywide Plc Generic Strategy, we can see how the system-leasing organisation of Countrywide Plc Generic Strategy has reliance on the growth of theatres and even then there is a limitation in regards to the variety of theatres that can be opened up.
As far as the theatre operations are worried, revenues from this source depend on the variety of theatres that Countrywide Plc Generic Strategy operates. Along with that, broadening the variety of theatres may result in high capital expenses for Countrywide Plc Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment may result in lower net success.
Franchises or Alliances:
If we look at Countrywide Plc Generic Strategy balance sheet, we can see how the company has a long term financial obligation of $ 160,000,000. We have actually currently discussed the financial obligation to properties, liquidity and success of the company in the ratio analysis done earlier to examine the internal financial position of Countrywide Plc Generic Strategy which would give further clearness concerning the truth that increasing the long term liability is not a possible choice for development. This brings us to the conclusion that Countrywide Plc Generic Strategy is currently in a position where it needs to decrease its reliability on revenue from theatre operations and needs to broaden through alternative choices which need lower capital investment and guarantee greater net profitability. One possible option that can be evaluated further is to give franchises of Countrywide Plc Generic Strategy or to have alliances with other companies which can promote growth with very little capital investment. However, the possibility of losing a total hold over the quality of services being used might prevent additional orientation in this direction.
If we explore Countrywide Plc Generic Strategy position in its movie circulation business, we can see how there is a greater orientation towards producing documentary. This does guarantee circulation Hollywood movies which might lose their impact after the initial launch period, the fact still remains that documentaries do not promise earnings growth especially as the market share for these documentaries is limited to the very same segment. While Hollywood movies are made in different category, they likewise offer the possibility of generating high earnings within the preliminary days of screening. So concentrating on documentaries in regards to broadening the film circulation business indicates limiting the variety of releases to a couple of documentaries that may not be bring in more than the current audience. This highlights the truth that in order to bring in a greater number of audiences to Countrywide Plc Generic Strategy theatres, it is necessary to increase the number of films that are released under Countrywide Plc Generic Strategy name.