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Franklin Templeton India The Cash Holding Dilemma Generic Strategy Case Study Help


Franklin Templeton India The Cash Holding Dilemma Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic strategies that have actually been utilized by Franklin Templeton India The Cash Holding Dilemma Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can cause a sustainable growth method for Franklin Templeton India The Cash Holding Dilemma Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic techniques, organisations have the alternative of operating as specific niche players where they concentrate on a smaller section of the marketplace. Franklin Templeton India The Cash Holding Dilemma Generic Strategy has the choice of operating as a niche player by making large format movies and systems instead of dealing with the mass market. We have talked about 3 possible alternatives for Franklin Templeton India The Cash Holding Dilemma Generic Strategy which can be pursued in terms of niche marketing. Before we take a look at these options, a discussion concerning why Franklin Templeton India The Cash Holding Dilemma Generic Strategy requires an alternative profits development design is shared listed below.

We have already gone over how Franklin Templeton India The Cash Holding Dilemma Generic Strategy has three profits sources including its theatre operations, movie circulation and system leasing. As we look at the income statements for 2004 to 2007, we can observe inconsistency in terms of profitability and development in revenues. A fall in earnings especially in 2006 and 2007 recommends that the business requires to concentrate on areas of growth which can promise consistency in earnings growth and success.

As we explore each of the income sources for Franklin Templeton India The Cash Holding Dilemma Generic Strategy, we can see how the system-leasing organisation of Franklin Templeton India The Cash Holding Dilemma Generic Strategy has dependency on the expansion of theatres and even then there is a constraint in terms of the number of theatres that can be opened up.

As far as the theatre operations are worried, incomes from this source depend on the number of theatres that Franklin Templeton India The Cash Holding Dilemma Generic Strategy operates. In addition to that, expanding the number of theatres might cause high capital expenses for Franklin Templeton India The Cash Holding Dilemma Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense may cause lower net success.

Franchises or Alliances:

We can see how the company has a long term financial obligation of $ 160,000,000 if we look at Franklin Templeton India The Cash Holding Dilemma Generic Strategy balance sheet. We have actually currently discussed the financial obligation to properties, liquidity and profitability of the business in the ratio analysis done earlier to evaluate the internal financial position of Franklin Templeton India The Cash Holding Dilemma Generic Strategy which would offer more clarity relating to the truth that increasing the long term liability is not a possible option for growth. This brings us to the conclusion that Franklin Templeton India The Cash Holding Dilemma Generic Strategy is presently in a position where it requires to lower its dependability on revenue from theatre operations and requires to expand through alternative choices which need lower capital investment and promise higher net success. One possible option that can be examined further is to provide franchises of Franklin Templeton India The Cash Holding Dilemma Generic Strategy or to have alliances with other business which can promote expansion with very little capital expenditure. The possibility of losing a total hold over the quality of services being used may prevent additional orientation in this instructions.

Documentaries:

If we explore Franklin Templeton India The Cash Holding Dilemma Generic Strategy position in its film distribution business, we can see how there is a greater orientation towards producing documentary films. Focusing on documentaries in terms of broadening the film distribution business means restricting the number of releases to a couple of documentaries that might not be attracting more than the existing audience.