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Financial Statement And Ratio Analysis Generic Strategy Case Study Help


Financial Statement And Ratio Analysis Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic techniques that have been used by Financial Statement And Ratio Analysis Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable development method for Financial Statement And Ratio Analysis Generic Strategy.

Focus Strategy: Niche Marketing

As per Michael porter's generic strategies, companies have the alternative of operating as niche players where they concentrate on a smaller sector of the market. Financial Statement And Ratio Analysis Generic Strategy has the choice of operating as a specific niche player by making big format movies and systems rather than catering to the mass market. We have talked about 3 possible alternatives for Financial Statement And Ratio Analysis Generic Strategy which can be pursued in regards to niche marketing. Before we take a look at these alternatives, a conversation regarding why Financial Statement And Ratio Analysis Generic Strategy needs an alternative revenue development design is shared below.

We have already talked about how Financial Statement And Ratio Analysis Generic Strategy has three revenue sources including its theatre operations, movie distribution and system leasing. As we take a look at the income statements for 2004 to 2007, we can observe disparity in terms of profitability and development in earnings. A fall in earnings especially in 2006 and 2007 suggests that business needs to concentrate on locations of growth which can assure consistency in income development and profitability.

As we explore each of the profits sources for Financial Statement And Ratio Analysis Generic Strategy, we can see how the system-leasing service of Financial Statement And Ratio Analysis Generic Strategy has reliance on the growth of theatres and even then there is a restriction in regards to the variety of theatres that can be opened.

As far as the theatre operations are concerned, incomes from this source depend on the variety of theatres that Financial Statement And Ratio Analysis Generic Strategy operates. Together with that, broadening the variety of theatres might result in high capital expenses for Financial Statement And Ratio Analysis Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment may cause lower net success.

Franchises or Alliances:

We can see how the company has a long term debt of $ 160,000,000 if we look at Financial Statement And Ratio Analysis Generic Strategy balance sheet. We have already talked about the debt to assets, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal monetary position of Financial Statement And Ratio Analysis Generic Strategy which would provide further clarity regarding the fact that increasing the long term liability is not a feasible option for development. This brings us to the conclusion that Financial Statement And Ratio Analysis Generic Strategy is currently in a position where it requires to lower its reliability on revenue from theatre operations and requires to broaden through alternative options which require lower capital investment and assure greater net profitability. One possible option that can be assessed even more is to provide franchises of Financial Statement And Ratio Analysis Generic Strategy or to have alliances with other business which can promote growth with very little capital investment. However, the possibility of losing a complete hold over the quality of services being provided might avoid further orientation in this direction.

Documentaries:

If we explore Financial Statement And Ratio Analysis Generic Strategy position in its film distribution company, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of expanding the movie distribution company suggests limiting the number of releases to a few documentaries that may not be attracting more than the present audience.