WhatsApp

Gordon Biersch New Challenges And Opportunities Generic Strategy Case Study Help


Gordon Biersch New Challenges And Opportunities Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic strategies that have been used by Gordon Biersch New Challenges And Opportunities Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can result in a sustainable development strategy for Gordon Biersch New Challenges And Opportunities Generic Strategy.

Focus Strategy: Niche Marketing

We have talked about 3 possible alternatives for Gordon Biersch New Challenges And Opportunities Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these options, a conversation concerning why Gordon Biersch New Challenges And Opportunities Generic Strategy requires an alternative earnings development design is shared listed below.

We have already talked about how Gordon Biersch New Challenges And Opportunities Generic Strategy has 3 earnings 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 development in revenues. A fall in net income specifically in 2006 and 2007 recommends that business requires to concentrate on areas of growth which can guarantee consistency in income development and profitability.

As we explore each of the revenue sources for Gordon Biersch New Challenges And Opportunities Generic Strategy, we can see how the system-leasing organisation of Gordon Biersch New Challenges And Opportunities 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 concerned, incomes from this source are dependent on the number of theatres that Gordon Biersch New Challenges And Opportunities Generic Strategy runs. Along with that, expanding the variety of theatres might lead to high capital expenses for Gordon Biersch New Challenges And Opportunities Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment might result in lower net profitability.

Franchises or Alliances:

If we look at Gordon Biersch New Challenges And Opportunities Generic Strategy balance sheet, we can see how the company has a long term financial obligation of $ 160,000,000. We have actually already gone over the financial obligation to possessions, liquidity and profitability of the business in the ratio analysis done earlier to assess the internal monetary position of Gordon Biersch New Challenges And Opportunities Generic Strategy which would give further clearness regarding the truth that increasing the long term liability is not a feasible alternative for development. This brings us to the conclusion that Gordon Biersch New Challenges And Opportunities Generic Strategy is currently in a position where it needs to lower its reliability on revenue from theatre operations and needs to broaden through alternative choices which require lower capital expense and promise higher net success. One possible choice that can be evaluated further is to offer franchises of Gordon Biersch New Challenges And Opportunities Generic Strategy or to have alliances with other business which can promote growth with minimal capital investment. The possibility of losing a total hold over the quality of services being used may avoid additional orientation in this instructions.

Documentaries:

We can see how there is a higher orientation towards producing documentary movies if we explore Gordon Biersch New Challenges And Opportunities Generic Strategy position in its film distribution service. Although this does assure circulation Hollywood films which might lose their impact after the initial launch period, the fact still stays that documentaries do not pledge profits development specifically as the marketplace share for these documentaries is limited to the exact same sector. While Hollywood movies are made in various category, they also use the possibility of generating high profits within the preliminary days of screening. So focusing on documentaries in regards to broadening the film distribution company suggests restricting the variety of releases to a few documentaries that may not be attracting more than the current audience. This highlights the fact that in order to bring in a greater number of audiences to Gordon Biersch New Challenges And Opportunities Generic Strategy theatres, it is very important to increase the number of films that are released under Gordon Biersch New Challenges And Opportunities Generic Strategy name.