WhatsApp

Five And Six Dulles Station Generic Strategy Case Study Help


Five And Six Dulles Station Generic Strategy Generic Strategy Case Study HelpIn this section we would be assessing the generic methods that have been utilized by Five And Six Dulles Station Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can lead to a sustainable growth method for Five And Six Dulles Station Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic techniques, services have the alternative of operating as specific niche gamers where they focus on a smaller segment of the marketplace. Five And Six Dulles Station Generic Strategy has the choice of operating as a specific niche gamer by making large format films and systems instead of dealing with the mass market. We have discussed 3 possible alternatives for Five And Six Dulles Station Generic Strategy which can be pursued in terms of niche marketing. Before we look at these options, a conversation relating to why Five And Six Dulles Station Generic Strategy requires an alternative income growth model is shared listed below.

We have actually already talked about how Five And Six Dulles Station Generic Strategy has three revenue sources including its theatre operations, film circulation and system leasing. As we take a look at the income statements for 2004 to 2007, we can observe inconsistency in regards to profitability and growth in revenues. A fall in earnings specifically in 2006 and 2007 suggests that the business needs to focus on locations of development which can promise consistency in revenue development and profitability.

As we explore each of the profits sources for Five And Six Dulles Station Generic Strategy, we can see how the system-leasing organisation of Five And Six Dulles Station Generic Strategy has dependence on the expansion of theatres and even then there is a constraint in regards to the number of theatres that can be opened up.

As far as the theatre operations are worried, profits from this source are dependent on the variety of theatres that Five And Six Dulles Station Generic Strategy operates. In addition to that, expanding the variety of theatres may result in high capital costs for Five And Six Dulles Station Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense may result in lower net success.

Franchises or Alliances:

If we take a look at Five And Six Dulles Station Generic Strategy balance sheet, we can see how the company has a long term financial obligation of $ 160,000,000. We have already gone over the debt to possessions, liquidity and profitability of the business in the ratio analysis done earlier to examine the internal monetary position of Five And Six Dulles Station Generic Strategy which would give additional clearness relating to the truth that increasing the long term liability is not a practical option for development. This brings us to the conclusion that Five And Six Dulles Station Generic Strategy is currently in a position where it needs to minimize its reliability on revenue from theatre operations and needs to expand through alternative choices which need lower capital investment and promise greater net success. One possible choice that can be examined even more is to give franchises of Five And Six Dulles Station Generic Strategy or to have alliances with other companies which can promote growth with very little capital investment. The possibility of losing a total hold over the quality of services being offered may avoid more orientation in this direction.

Documentaries:

If we explore Five And Six Dulles Station Generic Strategy position in its movie distribution company, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the film circulation service suggests restricting the number of releases to a couple of documentaries that might not be bring in more than the existing audience.