Peta Escalation Generic Strategy Case Study Help
In this section we would be examining the generic techniques that have been used by Peta Escalation Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can lead to a sustainable development technique for Peta Escalation Generic Strategy.
Focus Strategy: Niche Marketing
Based on Michael porter's generic methods, businesses have the alternative of operating as niche players where they focus on a smaller sector of the marketplace. Peta Escalation Generic Strategy has the choice of operating as a specific niche player by making large format movies and systems instead of catering to the mass market. We have actually discussed three possible alternatives for Peta Escalation Generic Strategy which can be pursued in regards to specific niche marketing. Before we take a look at these alternatives, a discussion regarding why Peta Escalation Generic Strategy needs an alternative revenue growth model is shared listed below.
We have actually currently discussed how Peta Escalation Generic Strategy has 3 earnings sources including its theatre operations, film distribution and system leasing. As we take a look at the earnings declarations for 2004 to 2007, we can observe disparity in terms of success and development in profits. A fall in net income particularly in 2006 and 2007 suggests that the business needs to concentrate on areas of growth which can promise consistency in income growth and profitability.
As we explore each of the revenue sources for Peta Escalation Generic Strategy, we can see how the system-leasing business of Peta Escalation 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.
As far as the theatre operations are concerned, incomes from this source are dependent on the number of theatres that Peta Escalation Generic Strategy runs. Along with that, broadening the number of theatres might lead to high capital expenses for Peta Escalation Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense may cause lower net profitability.
Franchises or Alliances:
If we look at Peta Escalation Generic Strategy balance sheet, we can see how the company has a long term financial obligation of $ 160,000,000. We have actually already talked about the financial obligation to properties, liquidity and profitability of the company in the ratio analysis done earlier to assess the internal financial position of Peta Escalation Generic Strategy which would give more clarity relating to the reality that increasing the long term liability is not a practical option for development. This brings us to the conclusion that Peta Escalation Generic Strategy is currently in a position where it requires to lower its dependability on profits from theatre operations and requires to broaden through alternative choices which need lower capital investment and promise higher net success. One possible option that can be evaluated even more is to provide franchises of Peta Escalation Generic Strategy or to have alliances with other business which can promote expansion with very little capital expenditure. However, the possibility of losing a complete hold over the quality of services being offered might prevent additional orientation in this direction.
We can see how there is a higher orientation towards producing documentary movies if we explore Peta Escalation Generic Strategy position in its movie circulation company. Although this does assure blood circulation Hollywood films which might lose their impact after the preliminary launch duration, the truth still stays that documentaries do not pledge earnings growth especially as the marketplace share for these documentaries is restricted to the same sector. While Hollywood movies are made in various genre, they also offer the possibility of producing high revenues within the initial days of screening. Focusing on documentaries in terms of expanding the film circulation company suggests restricting the number of releases to a few documentaries that might not be drawing in more than the present audience. This highlights the fact that in order to bring in a greater number of audiences to Peta Escalation Generic Strategy theatres, it is essential to increase the variety of films that are launched under Peta Escalation Generic Strategy name.