Enron Collapse Generic Strategy Case Study Help
In this section we would be examining the generic strategies that have been used by Enron Collapse Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable growth method for Enron Collapse Generic Strategy.
Focus Strategy: Niche Marketing
We have discussed 3 possible options for Enron Collapse Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these alternatives, a conversation concerning why Enron Collapse Generic Strategy requires an alternative income growth model is shared below.
We have currently talked about how Enron Collapse Generic Strategy has 3 profits sources including its theatre operations, film circulation and system leasing. As we look at the income statements for 2004 to 2007, we can observe inconsistency in regards to success and growth in profits. A fall in earnings specifically in 2006 and 2007 recommends that the business needs to concentrate on locations of growth which can assure consistency in income development and profitability.
As we check out each of the earnings sources for Enron Collapse Generic Strategy, we can see how the system-leasing organisation of Enron Collapse Generic Strategy has dependency on the growth of theatres and even then there is a constraint in terms of the number of theatres that can be opened.
As far as the theatre operations are worried, incomes from this source depend on the variety of theatres that Enron Collapse Generic Strategy runs. Together with that, broadening the variety of theatres might result in high capital costs for Enron Collapse Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment may cause lower net success.
Franchises or Alliances:
We have actually currently talked about the debt to properties, liquidity and success of the business in the ratio analysis done earlier to examine the internal financial position of Enron Collapse Generic Strategy which would offer further clearness regarding the truth that increasing the long term liability is not a practical alternative for development. One possible option that can be assessed even more is to provide franchises of Enron Collapse Generic Strategy or to have alliances with other companies which can promote growth with very little capital expense.
We can see how there is a higher orientation towards producing documentary films if we check out Enron Collapse Generic Strategy position in its film circulation organisation. This does guarantee blood circulation Hollywood movies which might lose their effect after the preliminary launch duration, the truth still remains that documentaries do not promise profits development especially as the market share for these documentaries is restricted to the same sector. While Hollywood motion pictures are made in various category, they likewise use the possibility of creating high earnings within the initial days of screening. Focusing on documentaries in terms of broadening the movie circulation company implies restricting the number of releases to a couple of documentaries that might not be attracting more than the current audience. This highlights the fact that in order to attract a greater number of audiences to Enron Collapse Generic Strategy theatres, it is important to increase the variety of motion pictures that are launched under Enron Collapse Generic Strategy name.