Moray Junior High School Generic Strategy Case Study Help
In this section we would be examining the generic techniques that have been used by Moray Junior High School Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can result in a sustainable growth method for Moray Junior High School Generic Strategy.
Focus Strategy: Niche Marketing
As per Michael porter's generic methods, businesses have the alternative of operating as specific niche gamers where they concentrate on a smaller section of the marketplace. Moray Junior High School Generic Strategy has the option of operating as a specific niche player by making large format movies and systems rather than catering to the mass market. We have discussed 3 possible options for Moray Junior High School Generic Strategy which can be pursued in regards to specific niche marketing. Before we look at these alternatives, a conversation concerning why Moray Junior High School Generic Strategy needs an alternative revenue development model is shared listed below.
We have actually currently gone over how Moray Junior High School Generic Strategy has three income sources including its theatre operations, film circulation and system leasing. As we look at the income declarations for 2004 to 2007, we can observe inconsistency in terms of profitability and growth in incomes. A fall in earnings especially in 2006 and 2007 recommends that business needs to concentrate on locations of development which can promise consistency in earnings growth and profitability.
As we explore each of the income sources for Moray Junior High School Generic Strategy, we can see how the system-leasing company of Moray Junior High School Generic Strategy has dependency on the growth of theatres and even then there is a restriction in terms of the number of theatres that can be opened up.
As far as the theatre operations are concerned, incomes from this source depend on the number of theatres that Moray Junior High School Generic Strategy runs. Along with that, broadening the number of theatres might cause high capital costs for Moray Junior High School Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense may lead to lower net success.
Franchises or Alliances:
If we look at Moray Junior High School Generic Strategy balance sheet, we can see how the business has a long term financial obligation of $ 160,000,000. We have currently talked about the financial obligation to assets, liquidity and success of the business in the ratio analysis done earlier to assess the internal financial position of Moray Junior High School Generic Strategy which would give more clearness concerning the truth that increasing the long term liability is not a practical alternative for development. This brings us to the conclusion that Moray Junior High School Generic Strategy is presently in a position where it needs to lower its dependability on income from theatre operations and needs to expand through alternative choices which need lower capital expense and assure greater net success. One possible option that can be assessed further is to give franchises of Moray Junior High School Generic Strategy or to have alliances with other business which can promote growth with very little capital investment. The possibility of losing a total hold over the quality of services being used might avoid more orientation in this direction.
We can see how there is a higher orientation towards producing documentary movies if we explore Moray Junior High School Generic Strategy position in its film circulation organisation. Although this does assure blood circulation Hollywood motion pictures which may lose their impact after the initial launch duration, the fact still stays that documentaries do not pledge revenue development specifically as the marketplace share for these documentaries is limited to the exact same section. While Hollywood films are made in various genre, they also use the possibility of creating high revenues within the initial days of screening. Focusing on documentaries in terms of broadening the film distribution organisation suggests restricting the number of releases to a few documentaries that might not be drawing in more than the current audience. This highlights the truth that in order to bring in a greater number of audiences to Moray Junior High School Generic Strategy theatres, it is essential to increase the variety of motion pictures that are launched under Moray Junior High School Generic Strategy name.