In this section we would be evaluating the generic methods that have actually been utilized by King And Roberts B Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can cause a sustainable development technique for King And Roberts B Generic Strategy.
We have actually gone over three possible options for King And Roberts B Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these alternatives, a discussion relating to why King And Roberts B Generic Strategy needs an alternative earnings development model is shared below.
We have already talked about how King And Roberts B Generic Strategy has three income sources including its theatre operations, movie distribution and system leasing. As we take a look at the income statements for 2004 to 2007, we can observe inconsistency in regards to profitability and growth in incomes. A fall in earnings especially in 2006 and 2007 suggests that the business requires to concentrate on areas of growth which can assure consistency in revenue development and profitability.
As we check out each of the profits sources for King And Roberts B Generic Strategy, we can see how the system-leasing company of King And Roberts B Generic Strategy has reliance on the expansion of theatres and even then there is a restriction in regards to 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 King And Roberts B Generic Strategy runs. In addition to that, expanding the number of theatres may cause high capital expenses for King And Roberts B Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense may result in lower net success.