In this section we would be assessing the generic methods that have been used by Gaz De France Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable development method for Gaz De France Generic Strategy.
According to Michael porter's generic strategies, services have the alternative of operating as niche players where they concentrate on a smaller section of the market. Gaz De France Generic Strategy has the choice of operating as a niche gamer by making big format movies and systems rather than dealing with the mass market. We have actually gone over three possible options for Gaz De France Generic Strategy which can be pursued in regards to niche marketing. Before we take a look at these options, a conversation relating to why Gaz De France Generic Strategy requires an alternative revenue growth model is shared below.
We have currently gone over how Gaz De France Generic Strategy has 3 income sources including its theatre operations, film circulation and system leasing. As we look at the income declarations for 2004 to 2007, we can observe inconsistency in regards to success and growth in profits. A fall in net income especially in 2006 and 2007 recommends that the business requires to concentrate on areas of growth which can guarantee consistency in profits development and success.
As we explore each of the earnings sources for Gaz De France Generic Strategy, we can see how the system-leasing business of Gaz De France Generic Strategy has dependence on the growth of theatres and even then there is a constraint in regards to the variety of theatres that can be opened.
As far as the theatre operations are concerned, incomes from this source are dependent on the variety of theatres that Gaz De France Generic Strategy runs. In addition to that, expanding the number of theatres might lead to high capital costs for Gaz De France Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense may result in lower net success.