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Gm And Cerberus Unusual Partners Generic Strategy Case Study Help


Gm And Cerberus Unusual Partners Generic Strategy Generic Strategy Case Study HelpIn this section we would be assessing the generic strategies that have been utilized by Gm And Cerberus Unusual Partners Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can lead to a sustainable growth technique for Gm And Cerberus Unusual Partners Generic Strategy.

Focus Strategy: Niche Marketing

We have discussed three possible options for Gm And Cerberus Unusual Partners Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these alternatives, a conversation relating to why Gm And Cerberus Unusual Partners Generic Strategy requires an alternative income development model is shared listed below.

We have already gone over how Gm And Cerberus Unusual Partners Generic Strategy has 3 income sources including its theatre operations, movie circulation and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe inconsistency in regards to success and growth in profits. A fall in earnings particularly in 2006 and 2007 recommends that business needs to focus on areas of growth which can promise consistency in income growth and success.

As we check out each of the profits sources for Gm And Cerberus Unusual Partners Generic Strategy, we can see how the system-leasing business of Gm And Cerberus Unusual Partners Generic Strategy has dependency on the expansion of theatres and even then there is a constraint in terms of the variety of theatres that can be opened.

As far as the theatre operations are concerned, earnings from this source are dependent on the variety of theatres that Gm And Cerberus Unusual Partners Generic Strategy operates. Along with that, expanding the number of theatres may cause high capital costs for Gm And Cerberus Unusual Partners Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment may lead to 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 Gm And Cerberus Unusual Partners Generic Strategy balance sheet. We have already talked about the financial obligation to assets, liquidity and success of the company in the ratio analysis done earlier to evaluate the internal financial position of Gm And Cerberus Unusual Partners Generic Strategy which would provide more clarity regarding the truth that increasing the long term liability is not a possible choice for development. This brings us to the conclusion that Gm And Cerberus Unusual Partners Generic Strategy is currently in a position where it needs to minimize its dependability on profits from theatre operations and needs to broaden through alternative choices which need lower capital expense and promise higher net profitability. One possible alternative that can be evaluated even more is to give franchises of Gm And Cerberus Unusual Partners Generic Strategy or to have alliances with other business which can promote expansion with minimal capital investment. The possibility of losing a complete hold over the quality of services being offered may prevent further orientation in this direction.

Documentaries:

If we explore Gm And Cerberus Unusual Partners Generic Strategy position in its movie distribution service, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of expanding the film distribution service suggests limiting the number of releases to a couple of documentaries that may not be attracting more than the present audience.