In this area we would be assessing the generic techniques that have been utilized by Nasdaq Stock Market Inc Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can lead to a sustainable development technique for Nasdaq Stock Market Inc Generic Strategy.
According to Michael porter's generic techniques, organisations have the option of operating as niche gamers where they focus on a smaller sized segment of the market. Nasdaq Stock Market Inc Generic Strategy has the option of operating as a niche player by making big format films and systems instead of catering to the mass market. We have discussed three possible alternatives for Nasdaq Stock Market Inc Generic Strategy which can be pursued in regards to niche marketing. Before we look at these alternatives, a conversation regarding why Nasdaq Stock Market Inc Generic Strategy needs an alternative income development model is shared listed below.
We have already talked about how Nasdaq Stock Market Inc Generic Strategy has 3 revenue sources including its theatre operations, movie distribution and system leasing. As we take a look at the earnings statements for 2004 to 2007, we can observe disparity in regards to profitability and development in revenues. A fall in net income especially in 2006 and 2007 suggests that business needs to focus on areas of development which can guarantee consistency in earnings growth and profitability.
As we explore each of the revenue sources for Nasdaq Stock Market Inc Generic Strategy, we can see how the system-leasing company of Nasdaq Stock Market Inc Generic Strategy has dependency on the expansion of theatres and even then there is a limitation in regards to the variety of theatres that can be opened up.
As far as the theatre operations are worried, earnings from this source depend on the variety of theatres that Nasdaq Stock Market Inc Generic Strategy runs. Together with that, expanding the number of theatres might result in high capital expenses for Nasdaq Stock Market Inc Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might cause lower net success.