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Metromedia Broadcasting Corp Generic Strategy Case Study Help


Metromedia Broadcasting Corp Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic strategies that have actually been used by Metromedia Broadcasting Corp Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can lead to a sustainable development technique for Metromedia Broadcasting Corp Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic techniques, companies have the option of operating as specific niche players where they focus on a smaller section of the market. Metromedia Broadcasting Corp Generic Strategy has the option of operating as a niche player by making large format movies and systems rather than dealing with the mass market. We have discussed three possible options for Metromedia Broadcasting Corp Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these alternatives, a discussion concerning why Metromedia Broadcasting Corp Generic Strategy requires an alternative profits growth model is shared listed below.

We have currently talked about how Metromedia Broadcasting Corp Generic Strategy has three income sources including its theatre operations, film distribution and system leasing. As we take a look at the earnings declarations for 2004 to 2007, we can observe inconsistency in terms of success and development in revenues. A fall in net income especially in 2006 and 2007 recommends that the business requires to focus on locations of development which can assure consistency in earnings development and success.

As we check out each of the revenue sources for Metromedia Broadcasting Corp Generic Strategy, we can see how the system-leasing business of Metromedia Broadcasting Corp Generic Strategy has dependency on the expansion of theatres and even then there is a constraint in regards to the number of theatres that can be opened.

As far as the theatre operations are worried, incomes from this source depend on the number of theatres that Metromedia Broadcasting Corp Generic Strategy operates. In addition to that, broadening the variety of theatres may cause high capital costs for Metromedia Broadcasting Corp Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense might result in lower net success.

Franchises or Alliances:

We have actually already talked about the financial obligation to properties, liquidity and success of the business in the ratio analysis done earlier to assess the internal monetary position of Metromedia Broadcasting Corp Generic Strategy which would offer further clearness concerning the reality that increasing the long term liability is not a feasible choice for growth. One possible option that can be examined further is to provide franchises of Metromedia Broadcasting Corp Generic Strategy or to have alliances with other companies which can promote expansion with minimal capital expense.

Documentaries:

If we check out Metromedia Broadcasting Corp Generic Strategy position in its film distribution company, we can see how there is a greater orientation towards producing documentary films. Focusing on documentaries in terms of expanding the movie distribution service suggests limiting the number of releases to a few documentaries that might not be attracting more than the present audience.