Joe Perez Generic Strategy Case Study Help
In this section we would be assessing the generic methods that have been used by Joe Perez Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can lead to a sustainable development strategy for Joe Perez Generic Strategy.
Focus Strategy: Niche Marketing
We have actually talked about three possible options for Joe Perez Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these options, a discussion regarding why Joe Perez Generic Strategy needs an alternative profits development design is shared listed below.
We have actually currently discussed how Joe Perez Generic Strategy has three profits sources including its theatre operations, movie circulation and system leasing. As we look at the earnings statements for 2004 to 2007, we can observe inconsistency in terms of success and growth in earnings. A fall in net income particularly in 2006 and 2007 suggests that business requires to concentrate on locations of growth which can guarantee consistency in revenue development and success.
As we explore each of the profits sources for Joe Perez Generic Strategy, we can see how the system-leasing business of Joe Perez Generic Strategy has dependency on the expansion of theatres and even then there is a constraint in terms of the variety of theatres that can be opened up.
As far as the theatre operations are concerned, earnings from this source depend on the variety of theatres that Joe Perez Generic Strategy runs. In addition to that, broadening the number of theatres may result in high capital costs for Joe Perez Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might lead to lower net success.
Franchises or Alliances:
If we look at Joe Perez Generic Strategy balance sheet, we can see how the company has a long term debt of $ 160,000,000. We have actually currently talked about the debt to possessions, liquidity and success of the business in the ratio analysis done earlier to assess the internal monetary position of Joe Perez Generic Strategy which would provide further clarity concerning the truth that increasing the long term liability is not a feasible alternative for growth. This brings us to the conclusion that Joe Perez Generic Strategy is currently in a position where it needs to decrease its dependability on revenue from theatre operations and requires to broaden through alternative choices which require lower capital expense and assure greater net profitability. One possible option that can be evaluated further is to provide franchises of Joe Perez Generic Strategy or to have alliances with other business which can promote expansion with minimal capital investment. The possibility of losing a total hold over the quality of services being offered may prevent additional orientation in this instructions.
If we explore Joe Perez Generic Strategy position in its film circulation business, we can see how there is a higher orientation towards producing documentary. This does guarantee blood circulation Hollywood films which may lose their impact after the initial launch period, the reality still stays that documentaries do not promise revenue growth particularly as the market share for these documentaries is limited to the exact same segment. While Hollywood films are made in various genre, they also offer the possibility of generating high earnings within the initial days of screening. Focusing on documentaries in terms of broadening the movie circulation company indicates limiting the number of releases to a few documentaries that may not be bring in more than the existing audience. This highlights the truth that in order to attract a greater number of audiences to Joe Perez Generic Strategy theatres, it is essential to increase the variety of motion pictures that are launched under Joe Perez Generic Strategy name.