WhatsApp

Gmac The Pipeline Generic Strategy Case Study Help


Gmac The Pipeline Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic techniques that have actually been used by Gmac The Pipeline Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can result in a sustainable growth strategy for Gmac The Pipeline Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic techniques, companies have the alternative of operating as specific niche players where they focus on a smaller segment of the marketplace. Gmac The Pipeline Generic Strategy has the option of operating as a specific niche gamer by making big format films and systems instead of catering to the mass market. We have discussed 3 possible options for Gmac The Pipeline Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we take a look at these alternatives, a conversation concerning why Gmac The Pipeline Generic Strategy needs an alternative earnings growth model is shared listed below.

We have actually already gone over how Gmac The Pipeline Generic Strategy has 3 income sources including its theatre operations, film circulation and system leasing. As we take a look at the earnings declarations for 2004 to 2007, we can observe disparity in regards to profitability and growth in profits. A fall in earnings specifically in 2006 and 2007 suggests that the business needs to focus on areas of development which can guarantee consistency in profits development and success.

As we explore each of the income sources for Gmac The Pipeline Generic Strategy, we can see how the system-leasing organisation of Gmac The Pipeline Generic Strategy has reliance on the growth of theatres and even then there is a restriction in terms of the variety of theatres that can be opened up.

As far as the theatre operations are concerned, incomes from this source depend on the variety of theatres that Gmac The Pipeline Generic Strategy runs. Together with that, expanding the number of theatres may cause high capital costs for Gmac The Pipeline Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense might result in lower net success.

Franchises or Alliances:

We have already talked about the financial obligation to possessions, liquidity and profitability of the company in the ratio analysis done earlier to assess the internal financial position of Gmac The Pipeline Generic Strategy which would offer further clarity relating to the fact that increasing the long term liability is not a feasible choice for development. One possible alternative that can be examined even more is to offer franchises of Gmac The Pipeline Generic Strategy or to have alliances with other companies which can promote growth with minimal capital expense.

Documentaries:

If we explore Gmac The Pipeline Generic Strategy position in its movie distribution company, we can see how there is a greater orientation towards producing documentary films. Focusing on documentaries in terms of expanding the film circulation business suggests limiting the number of releases to a couple of documentaries that may not be attracting more than the existing audience.