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Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy Case Study Help


Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy Generic Strategy Case Study HelpIn this area we would be evaluating the generic methods that have been used by Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can cause a sustainable development technique for Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy.

Focus Strategy: Niche Marketing

As per Michael porter's generic methods, services have the option of operating as niche players where they concentrate on a smaller segment of the marketplace. Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy has the choice of operating as a niche gamer by making big format movies and systems instead of catering to the mass market. We have actually talked about three possible alternatives for Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy which can be pursued in terms of niche marketing. Prior to we take a look at these options, a conversation relating to why Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy requires an alternative revenue development design is shared below.

We have currently talked about how Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy has 3 income sources including its theatre operations, film distribution and system leasing. As we look at the income declarations for 2004 to 2007, we can observe inconsistency in regards to profitability and growth in profits. A fall in net income particularly in 2006 and 2007 recommends that the business needs to concentrate on locations of development which can promise consistency in earnings development and profitability.

As we explore each of the profits sources for Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy, we can see how the system-leasing organisation of Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy has dependency on the expansion 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, revenues from this source depend on the number of theatres that Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy operates. Along with that, expanding the number of theatres may cause high capital expenses for Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense might lead to lower net profitability.

Franchises or Alliances:

If we take a look at Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy balance sheet, we can see how the company has a long term debt of $ 160,000,000. We have currently gone over the debt to possessions, liquidity and success of the business in the ratio analysis done earlier to evaluate the internal monetary position of Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy which would give further clarity relating to the fact that increasing the long term liability is not a practical alternative for growth. This brings us to the conclusion that Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy is currently in a position where it needs to reduce its dependability on income from theatre operations and needs to expand through alternative choices which require lower capital expense and guarantee higher net profitability. One possible alternative that can be evaluated further is to offer franchises of Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy or to have alliances with other companies which can promote expansion with minimal capital investment. The possibility of losing a complete hold over the quality of services being offered might avoid further orientation in this direction.

Documentaries:

If we check out Hony Cifa And Zoomlion Creating Value And Strategic Choices In A Dynamic Market Chinese Version Generic Strategy position in its film circulation service, we can see how there is a greater orientation towards producing documentary films. Focusing on documentaries in terms of broadening the film distribution service indicates restricting the number of releases to a couple of documentaries that may not be drawing in more than the present audience.