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Equity International The Second Act Chinese Version Generic Strategy Case Study Help


Equity International The Second Act Chinese Version Generic Strategy Generic Strategy Case Study HelpIn this area we would be evaluating the generic techniques that have been utilized by Equity International The Second Act Chinese Version Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can result in a sustainable growth method for Equity International The Second Act Chinese Version Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic strategies, companies have the option of operating as specific niche players where they focus on a smaller segment of the marketplace. Equity International The Second Act Chinese Version Generic Strategy has the option of operating as a niche gamer by making large format films and systems rather than accommodating the mass market. We have discussed three possible options for Equity International The Second Act Chinese Version Generic Strategy which can be pursued in regards to specific niche marketing. Prior to we take a look at these alternatives, a discussion concerning why Equity International The Second Act Chinese Version Generic Strategy needs an alternative income development design is shared below.

We have currently talked about how Equity International The Second Act Chinese Version Generic Strategy has 3 revenue sources including its theatre operations, movie 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 earnings especially in 2006 and 2007 suggests that the business needs to concentrate on locations of development which can assure consistency in income growth and success.

As we check out each of the earnings sources for Equity International The Second Act Chinese Version Generic Strategy, we can see how the system-leasing company of Equity International The Second Act Chinese Version Generic Strategy has reliance on the growth of theatres and even then there is a restriction in terms of the number of theatres that can be opened up.

As far as the theatre operations are concerned, revenues from this source are dependent on the number of theatres that Equity International The Second Act Chinese Version Generic Strategy operates. In addition to that, expanding the number of theatres might lead to high capital costs for Equity International The Second Act Chinese Version Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment may lead to lower net profitability.

Franchises or Alliances:

If we look at Equity International The Second Act Chinese Version Generic Strategy balance sheet, we can see how the business has a long term debt of $ 160,000,000. We have actually already discussed the financial obligation to possessions, liquidity and profitability of the business in the ratio analysis done earlier to examine the internal monetary position of Equity International The Second Act Chinese Version Generic Strategy which would provide more clearness regarding the fact that increasing the long term liability is not a possible choice for growth. This brings us to the conclusion that Equity International The Second Act Chinese Version Generic Strategy is presently in a position where it requires to lower its reliability on revenue from theatre operations and requires to expand through alternative choices which need lower capital expense and promise greater net profitability. One possible alternative that can be assessed even more is to offer franchises of Equity International The Second Act Chinese Version Generic Strategy or to have alliances with other companies which can promote growth with very little capital expenditure. The possibility of losing a complete hold over the quality of services being provided might prevent additional orientation in this direction.

Documentaries:

If we check out Equity International The Second Act Chinese Version Generic Strategy position in its film distribution company, we can see how there is a greater orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the film distribution business indicates restricting the number of releases to a few documentaries that may not be attracting more than the existing audience.