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Making The Grade A Generic Strategy Case Study Help


Making The Grade A Generic Strategy Generic Strategy Case Study HelpIn this area we would be examining the generic strategies that have been used by Making The Grade A Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can lead to a sustainable growth strategy for Making The Grade A Generic Strategy.

Focus Strategy: Niche Marketing

We have actually gone over 3 possible alternatives for Making The Grade A Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these options, a conversation relating to why Making The Grade A Generic Strategy needs an alternative income growth design is shared below.

We have currently gone over how Making The Grade A Generic Strategy has three revenue sources including its theatre operations, movie distribution and system leasing. As we look at the earnings statements for 2004 to 2007, we can observe inconsistency in regards to profitability and development in incomes. A fall in net income especially in 2006 and 2007 suggests that business needs to concentrate on areas of growth which can assure consistency in revenue development and success.

As we explore each of the earnings sources for Making The Grade A Generic Strategy, we can see how the system-leasing service of Making The Grade A Generic Strategy has dependence 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 worried, incomes from this source depend on the number of theatres that Making The Grade A Generic Strategy runs. In addition to that, broadening the variety of theatres may result in high capital costs for Making The Grade A Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment may result in lower net profitability.

Franchises or Alliances:

We can see how the company has a long term financial obligation of $ 160,000,000 if we look at Making The Grade A Generic Strategy balance sheet. We have currently gone over the debt to properties, liquidity and profitability of the company in the ratio analysis done earlier to examine the internal financial position of Making The Grade A Generic Strategy which would give more clarity regarding the truth that increasing the long term liability is not a practical option for development. This brings us to the conclusion that Making The Grade A Generic Strategy is currently in a position where it requires to lower its reliability on earnings from theatre operations and needs to expand through alternative options which need lower capital expense and guarantee higher net success. One possible option that can be examined even more is to provide franchises of Making The Grade A Generic Strategy or to have alliances with other companies which can promote expansion with minimal capital expenditure. However, the possibility of losing a total hold over the quality of services being used might avoid more orientation in this direction.

Documentaries:

If we explore Making The Grade A Generic Strategy position in its film circulation business, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the movie circulation company implies limiting the number of releases to a couple of documentaries that may not be attracting more than the existing audience.