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National Convenience Stores Inc Generic Strategy Case Study Help


National Convenience Stores Inc Generic Strategy Generic Strategy Case Study HelpIn this area we would be evaluating the generic techniques that have actually been utilized by National Convenience Stores Inc Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can lead to a sustainable development strategy for National Convenience Stores Inc Generic Strategy.

Focus Strategy: Niche Marketing

As per Michael porter's generic techniques, businesses have the alternative of operating as niche players where they focus on a smaller sized segment of the marketplace. National Convenience Stores Inc Generic Strategy has the choice of operating as a niche gamer by making big format films and systems instead of catering to the mass market. We have actually discussed 3 possible alternatives for National Convenience Stores Inc Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these alternatives, a discussion regarding why National Convenience Stores Inc Generic Strategy requires an alternative revenue development design is shared listed below.

We have currently talked about how National Convenience Stores Inc Generic Strategy has three earnings sources including its theatre operations, film distribution and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe disparity in terms of success and growth in profits. A fall in earnings specifically in 2006 and 2007 suggests that business requires to focus on areas of growth which can assure consistency in earnings growth and profitability.

As we check out each of the income sources for National Convenience Stores Inc Generic Strategy, we can see how the system-leasing company of National Convenience Stores Inc Generic Strategy has reliance on the growth of theatres and even then there is a restriction in regards to the variety of theatres that can be opened.

As far as the theatre operations are concerned, incomes from this source depend on the number of theatres that National Convenience Stores Inc Generic Strategy operates. Along with that, broadening the number of theatres might lead to high capital costs for National Convenience Stores Inc Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment may lead to lower net profitability.

Franchises or Alliances:

We can see how the business has a long term debt of $ 160,000,000 if we look at National Convenience Stores Inc Generic Strategy balance sheet. We have currently discussed the financial obligation to properties, liquidity and profitability of the company in the ratio analysis done earlier to assess the internal financial position of National Convenience Stores Inc Generic Strategy which would provide more clearness regarding the fact that increasing the long term liability is not a possible choice for growth. This brings us to the conclusion that National Convenience Stores Inc Generic Strategy is currently in a position where it needs to lower its reliability on revenue from theatre operations and needs to broaden through alternative options which require lower capital investment and promise greater net success. One possible choice that can be examined further is to give franchises of National Convenience Stores Inc Generic Strategy or to have alliances with other companies which can promote expansion with very little capital investment. However, the possibility of losing a total hold over the quality of services being offered may prevent additional orientation in this direction.

Documentaries:

If we check out National Convenience Stores Inc Generic Strategy position in its movie distribution business, we can see how there is a greater orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the film circulation company implies limiting the number of releases to a few documentaries that may not be bring in more than the present audience.