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International Speedway Corporation Generic Strategy Case Study Help


International Speedway Corporation Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic strategies that have been used by International Speedway Corporation Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can lead to a sustainable development strategy for International Speedway Corporation Generic Strategy.

Focus Strategy: Niche Marketing

We have actually talked about three possible alternatives for International Speedway Corporation Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these alternatives, a discussion regarding why International Speedway Corporation Generic Strategy needs an alternative income development model is shared below.

We have actually already gone over how International Speedway Corporation Generic Strategy has 3 earnings 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 growth in revenues. A fall in earnings especially in 2006 and 2007 recommends that the business needs to focus on areas of growth which can guarantee consistency in profits growth and profitability.

As we explore each of the income sources for International Speedway Corporation Generic Strategy, we can see how the system-leasing service of International Speedway Corporation Generic Strategy has reliance on the expansion of theatres and even then there is a limitation in terms of the number of theatres that can be opened up.

As far as the theatre operations are concerned, profits from this source depend on the variety of theatres that International Speedway Corporation Generic Strategy operates. Along with that, expanding the variety of theatres might cause high capital expenses for International Speedway Corporation Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment might result in lower net profitability.

Franchises or Alliances:

We can see how the business has a long term debt of $ 160,000,000 if we look at International Speedway Corporation Generic Strategy balance sheet. We have actually already gone over the financial obligation to assets, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal monetary position of International Speedway Corporation Generic Strategy which would give more clarity regarding the fact that increasing the long term liability is not a practical alternative for development. This brings us to the conclusion that International Speedway Corporation Generic Strategy is currently in a position where it needs to minimize its reliability on profits from theatre operations and needs to broaden through alternative choices which need lower capital investment and assure higher net success. One possible choice that can be assessed even more is to provide franchises of International Speedway Corporation Generic Strategy or to have alliances with other business which can promote expansion with minimal capital investment. However, the possibility of losing a total hold over the quality of services being offered might avoid more orientation in this direction.

Documentaries:

If we check out International Speedway Corporation Generic Strategy position in its movie circulation business, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of broadening the film circulation company suggests limiting the number of releases to a couple of documentaries that might not be attracting more than the current audience.