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Microsoft Corporation Antitrust Suits Generic Strategy Case Study Help


Microsoft Corporation Antitrust Suits Generic Strategy Generic Strategy Case Study HelpIn this section we would be assessing the generic strategies that have actually been utilized by Microsoft Corporation Antitrust Suits Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can result in a sustainable growth technique for Microsoft Corporation Antitrust Suits Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic techniques, businesses have the option of operating as specific niche players where they concentrate on a smaller segment of the market. Microsoft Corporation Antitrust Suits Generic Strategy has the choice of operating as a niche gamer by making large format films and systems instead of accommodating the mass market. We have actually discussed three possible options for Microsoft Corporation Antitrust Suits Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these options, a discussion relating to why Microsoft Corporation Antitrust Suits Generic Strategy needs an alternative income development design is shared below.

We have currently gone over how Microsoft Corporation Antitrust Suits Generic Strategy has 3 income sources including its theatre operations, movie circulation and system leasing. As we look at the income declarations for 2004 to 2007, we can observe disparity in regards to profitability and development in earnings. A fall in net income particularly in 2006 and 2007 suggests that business needs to concentrate on locations of growth which can guarantee consistency in earnings growth and profitability.

As we check out each of the earnings sources for Microsoft Corporation Antitrust Suits Generic Strategy, we can see how the system-leasing organisation of Microsoft Corporation Antitrust Suits Generic Strategy has dependency on the expansion of theatres and even then there is a limitation in terms of the variety of theatres that can be opened up.

As far as the theatre operations are worried, incomes from this source are dependent on the variety of theatres that Microsoft Corporation Antitrust Suits Generic Strategy operates. Along with that, expanding the number of theatres may cause high capital costs for Microsoft Corporation Antitrust Suits Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment may 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 Microsoft Corporation Antitrust Suits Generic Strategy balance sheet. We have currently talked about the debt to properties, liquidity and profitability of the business in the ratio analysis done earlier to assess the internal monetary position of Microsoft Corporation Antitrust Suits Generic Strategy which would give additional clearness regarding the fact that increasing the long term liability is not a possible option for growth. This brings us to the conclusion that Microsoft Corporation Antitrust Suits Generic Strategy is currently in a position where it needs to minimize its reliability on earnings from theatre operations and requires to broaden through alternative options which need lower capital expense and assure greater net success. One possible choice that can be assessed further is to offer franchises of Microsoft Corporation Antitrust Suits Generic Strategy or to have alliances with other business which can promote expansion with minimal capital investment. However, the possibility of losing a total hold over the quality of services being provided might prevent more orientation in this direction.

Documentaries:

If we explore Microsoft Corporation Antitrust Suits Generic Strategy position in its movie circulation organisation, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the movie circulation service suggests restricting the number of releases to a few documentaries that might not be attracting more than the existing audience.