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Paramount Equipment Spanish Version Generic Strategy Case Study Help


Paramount Equipment Spanish Version Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic techniques that have been used by Paramount Equipment Spanish Version Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can cause a sustainable growth strategy for Paramount Equipment Spanish Version Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic strategies, companies have the alternative of operating as specific niche players where they focus on a smaller segment of the market. Paramount Equipment Spanish Version Generic Strategy has the option of operating as a specific niche gamer by making large format movies and systems rather than catering to the mass market. We have discussed 3 possible options for Paramount Equipment Spanish Version Generic Strategy which can be pursued in terms of niche marketing. Before we take a look at these options, a discussion concerning why Paramount Equipment Spanish Version Generic Strategy requires an alternative earnings growth design is shared listed below.

We have already gone over how Paramount Equipment Spanish Version Generic Strategy has 3 income sources including its theatre operations, movie distribution and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe inconsistency in regards to success and growth in profits. A fall in net income specifically in 2006 and 2007 suggests that business needs to concentrate on areas of growth which can assure consistency in income growth and profitability.

As we check out each of the earnings sources for Paramount Equipment Spanish Version Generic Strategy, we can see how the system-leasing service of Paramount Equipment Spanish Version Generic Strategy has dependence 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, revenues from this source depend on the variety of theatres that Paramount Equipment Spanish Version Generic Strategy operates. Along with that, broadening the variety of theatres might cause high capital costs for Paramount Equipment Spanish Version Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital investment might cause lower net profitability.

Franchises or Alliances:

We have currently gone over the debt to possessions, liquidity and profitability of the company in the ratio analysis done earlier to examine the internal monetary position of Paramount Equipment Spanish Version Generic Strategy which would provide more clarity relating to the truth that increasing the long term liability is not a feasible alternative for growth. One possible option that can be assessed even more is to offer franchises of Paramount Equipment Spanish Version Generic Strategy or to have alliances with other business which can promote growth with very little capital expense.

Documentaries:

If we explore Paramount Equipment Spanish Version Generic Strategy position in its film circulation business, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of broadening the movie circulation business means limiting the number of releases to a few documentaries that might not be attracting more than the current audience.