WhatsApp

Eskimo Pie Corp Generic Strategy Case Study Help


Eskimo Pie Corp Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic techniques that have been utilized by Eskimo Pie Corp Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can lead to a sustainable development method for Eskimo Pie Corp Generic Strategy.

Focus Strategy: Niche Marketing

We have actually talked about 3 possible alternatives for Eskimo Pie Corp Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these options, a discussion concerning why Eskimo Pie Corp Generic Strategy requires an alternative profits development design is shared below.

We have actually already talked about how Eskimo Pie Corp Generic Strategy has 3 earnings sources including its theatre operations, film distribution and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe disparity in regards to profitability and growth in profits. A fall in earnings particularly in 2006 and 2007 recommends that the business requires to concentrate on areas of development which can assure consistency in profits growth and profitability.

As we explore each of the profits sources for Eskimo Pie Corp Generic Strategy, we can see how the system-leasing company of Eskimo Pie Corp Generic Strategy has dependency on the growth of theatres and even then there is a constraint in terms of the variety of theatres that can be opened up.

As far as the theatre operations are worried, profits from this source are dependent on the number of theatres that Eskimo Pie Corp Generic Strategy runs. Along with that, broadening the number of theatres may cause high capital expenses for Eskimo Pie Corp Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense may cause lower net profitability.

Franchises or Alliances:

If we take a look at Eskimo Pie Corp Generic Strategy balance sheet, we can see how the company has a long term debt of $ 160,000,000. We have actually currently gone over the debt to possessions, liquidity and profitability of the business in the ratio analysis done earlier to assess the internal monetary position of Eskimo Pie Corp Generic Strategy which would give additional clarity regarding the reality that increasing the long term liability is not a feasible option for development. This brings us to the conclusion that Eskimo Pie Corp Generic Strategy is currently in a position where it needs to minimize its dependability on income from theatre operations and requires to expand through alternative options which need lower capital expense and guarantee higher net profitability. One possible option that can be assessed even more is to offer franchises of Eskimo Pie Corp Generic Strategy or to have alliances with other companies which can promote expansion with very little capital investment. The possibility of losing a complete hold over the quality of services being provided may avoid additional orientation in this direction.

Documentaries:

If we check out Eskimo Pie Corp Generic Strategy position in its film circulation business, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the film distribution business suggests limiting the number of releases to a few documentaries that might not be bring in more than the current audience.