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International Paper The Aussedat Rey Acquisition Generic Strategy Case Study Help


International Paper The Aussedat Rey Acquisition Generic Strategy Generic Strategy Case Study HelpIn this area we would be examining the generic techniques that have been utilized by International Paper The Aussedat Rey Acquisition Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can cause a sustainable development method for International Paper The Aussedat Rey Acquisition Generic Strategy.

Focus Strategy: Niche Marketing

As per Michael porter's generic strategies, companies have the alternative of operating as specific niche gamers where they concentrate on a smaller sized sector of the marketplace. International Paper The Aussedat Rey Acquisition Generic Strategy has the choice of operating as a specific niche player by making big format films and systems rather than dealing with the mass market. We have talked about three possible options for International Paper The Aussedat Rey Acquisition Generic Strategy which can be pursued in regards to specific niche marketing. Before we look at these alternatives, a discussion regarding why International Paper The Aussedat Rey Acquisition Generic Strategy needs an alternative profits growth model is shared listed below.

We have already discussed how International Paper The Aussedat Rey Acquisition Generic Strategy has 3 earnings sources including its theatre operations, film distribution and system leasing. As we look at the earnings statements for 2004 to 2007, we can observe disparity in regards to success and growth in revenues. A fall in earnings specifically in 2006 and 2007 suggests that the business needs to focus on areas of growth which can promise consistency in earnings growth and success.

As we explore each of the earnings sources for International Paper The Aussedat Rey Acquisition Generic Strategy, we can see how the system-leasing business of International Paper The Aussedat Rey Acquisition Generic Strategy has dependency on the growth of theatres and even then there is a restriction in terms of the number of theatres that can be opened up.

As far as the theatre operations are concerned, earnings from this source are dependent on the number of theatres that International Paper The Aussedat Rey Acquisition Generic Strategy runs. In addition to that, expanding the variety of theatres might result in high capital expenses for International Paper The Aussedat Rey Acquisition Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense may cause lower net profitability.

Franchises or Alliances:

We have currently talked about the financial obligation to assets, liquidity and success of the business in the ratio analysis done earlier to examine the internal financial position of International Paper The Aussedat Rey Acquisition Generic Strategy which would give additional clarity regarding the reality that increasing the long term liability is not a practical option for growth. One possible alternative that can be evaluated even more is to provide franchises of International Paper The Aussedat Rey Acquisition Generic Strategy or to have alliances with other business which can promote expansion with very little capital expenditure.

Documentaries:

We can see how there is a higher orientation towards producing documentary movies if we explore International Paper The Aussedat Rey Acquisition Generic Strategy position in its film distribution service. This does assure blood circulation Hollywood films which might lose their impact after the preliminary launch duration, the reality still stays that documentaries do not promise income development specifically as the market share for these documentaries is restricted to the same segment. While Hollywood films are made in different category, they also offer the possibility of creating high earnings within the initial days of screening. Focusing on documentaries in terms of broadening the film distribution service indicates limiting the number of releases to a couple of documentaries that may not be drawing in more than the existing audience. This highlights the truth that in order to attract a greater number of audiences to International Paper The Aussedat Rey Acquisition Generic Strategy theatres, it is very important to increase the variety of films that are launched under International Paper The Aussedat Rey Acquisition Generic Strategy name.