Messer Griesheim A Generic Strategy Case Study Help
In this area we would be evaluating the generic methods that have been used by Messer Griesheim A Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can result in a sustainable development method for Messer Griesheim A Generic Strategy.
Focus Strategy: Niche Marketing
As per Michael porter's generic methods, companies have the alternative of operating as specific niche players where they focus on a smaller segment of the market. Messer Griesheim A Generic Strategy has the choice of operating as a niche gamer by making large format movies and systems rather than catering to the mass market. We have actually discussed 3 possible options for Messer Griesheim A Generic Strategy which can be pursued in regards to niche marketing. Prior to we look at these alternatives, a conversation regarding why Messer Griesheim A Generic Strategy needs an alternative profits growth design is shared below.
We have actually already gone over how Messer Griesheim A Generic Strategy has three profits 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 regards to success and growth in earnings. A fall in earnings specifically in 2006 and 2007 suggests that the business needs to focus on areas of development which can assure consistency in earnings development and profitability.
As we explore each of the profits sources for Messer Griesheim A Generic Strategy, we can see how the system-leasing business of Messer Griesheim A Generic Strategy has dependency on the growth of theatres and even then there is a constraint in regards to the variety of theatres that can be opened.
As far as the theatre operations are worried, revenues from this source depend on the number of theatres that Messer Griesheim A Generic Strategy runs. In addition to that, broadening the variety of theatres might lead to high capital costs for Messer Griesheim A Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment might result in lower net success.
Franchises or Alliances:
We can see how the business has a long term financial obligation of $ 160,000,000 if we look at Messer Griesheim A Generic Strategy balance sheet. We have already gone over the debt to possessions, liquidity and profitability of the business in the ratio analysis done earlier to assess the internal financial position of Messer Griesheim A Generic Strategy which would offer additional clearness regarding the reality that increasing the long term liability is not a practical alternative for growth. This brings us to the conclusion that Messer Griesheim A Generic Strategy is presently in a position where it needs to lower its reliability on revenue from theatre operations and needs to expand through alternative choices which need lower capital investment and assure higher net success. One possible choice that can be evaluated further is to provide franchises of Messer Griesheim A Generic Strategy or to have alliances with other companies which can promote expansion with very little capital expenditure. However, the possibility of losing a total hold over the quality of services being used may prevent additional orientation in this direction.
We can see how there is a higher orientation towards producing documentary films if we explore Messer Griesheim A Generic Strategy position in its film distribution business. Although this does assure blood circulation Hollywood movies which might lose their effect after the preliminary launch duration, the fact still remains that documentaries do not guarantee income growth particularly as the market share for these documentaries is limited to the same sector. While Hollywood motion pictures are made in various genre, they also provide the possibility of generating high earnings within the preliminary days of screening. Focusing on documentaries in terms of expanding the movie distribution service indicates limiting the number of releases to a few documentaries that may not be bring in more than the present audience. This highlights the reality that in order to bring in a greater number of audiences to Messer Griesheim A Generic Strategy theatres, it is very important to increase the variety of movies that are launched under Messer Griesheim A Generic Strategy name.