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Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy Case Study Help


Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic methods that have actually been utilized by Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can lead to a sustainable development method for Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy.

Focus Strategy: Niche Marketing

We have discussed three possible options for Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these alternatives, a discussion concerning why Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy needs an alternative income growth model is shared below.

We have currently discussed how Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy has 3 profits 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 terms of profitability and development in earnings. A fall in earnings especially in 2006 and 2007 suggests that the business needs to concentrate on locations of growth which can assure consistency in income growth and profitability.

As we check out each of the profits sources for Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy, we can see how the system-leasing business of Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy has dependency on the growth of theatres and even then there is a constraint in regards to the variety of theatres that can be opened up.

As far as the theatre operations are concerned, incomes from this source depend on the number of theatres that Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy runs. Together with that, broadening the variety of theatres might cause high capital expenses for Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might cause lower net success.

Franchises or Alliances:

If we take a look at Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy balance sheet, we can see how the business has a long term financial obligation of $ 160,000,000. We have actually currently talked about the financial obligation to assets, liquidity and success of the business in the ratio analysis done earlier to evaluate the internal monetary position of Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy which would give more clearness relating to the reality that increasing the long term liability is not a feasible option for development. This brings us to the conclusion that Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy is currently in a position where it needs to reduce its reliability on income from theatre operations and requires to expand through alternative options which require lower capital investment and promise greater net success. One possible alternative that can be assessed even more is to provide franchises of Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy or to have alliances with other companies which can promote expansion with very little capital expenditure. The possibility of losing a total hold over the quality of services being offered might avoid more orientation in this instructions.

Documentaries:

We can see how there is a greater orientation towards producing documentary films if we check out Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy position in its movie distribution organisation. This does assure circulation Hollywood films which might lose their impact after the initial launch period, the truth still remains that documentaries do not promise revenue growth especially as the market share for these documentaries is restricted to the same section. While Hollywood films are made in different category, they also provide the possibility of creating high earnings within the preliminary days of screening. Focusing on documentaries in terms of broadening the film distribution organisation implies limiting the number of releases to a couple of documentaries that may not be attracting more than the present audience. This highlights the fact that in order to bring in a greater number of audiences to Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy theatres, it is important to increase the variety of movies that are launched under Huaneng Power International Inc Raising Capital In Global Markets Generic Strategy name.