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Real Estate Investment Trusts Generic Strategy Case Study Help


Real Estate Investment Trusts Generic Strategy Generic Strategy Case Study HelpIn this area we would be evaluating the generic strategies that have been utilized by Real Estate Investment Trusts Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can lead to a sustainable development method for Real Estate Investment Trusts Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic strategies, organisations have the alternative of operating as niche gamers where they concentrate on a smaller sized sector of the market. Real Estate Investment Trusts Generic Strategy has the option of operating as a specific niche gamer by making big format movies and systems instead of accommodating the mass market. We have talked about three possible options for Real Estate Investment Trusts Generic Strategy which can be pursued in terms of niche marketing. Before we take a look at these alternatives, a discussion relating to why Real Estate Investment Trusts Generic Strategy requires an alternative profits growth design is shared below.

We have actually currently gone over how Real Estate Investment Trusts Generic Strategy has 3 earnings sources including its theatre operations, movie circulation and system leasing. As we take a look at the earnings statements for 2004 to 2007, we can observe inconsistency in terms of success and growth in revenues. A fall in net income especially in 2006 and 2007 suggests that the business requires to focus on areas of development which can guarantee consistency in earnings development and success.

As we check out each of the profits sources for Real Estate Investment Trusts Generic Strategy, we can see how the system-leasing business of Real Estate Investment Trusts Generic Strategy has reliance on the expansion of theatres and even then there is a restriction in regards to the number of theatres that can be opened.

As far as the theatre operations are worried, earnings from this source are dependent on the variety of theatres that Real Estate Investment Trusts Generic Strategy operates. In addition to that, expanding the variety of theatres may result in high capital costs for Real Estate Investment Trusts Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense might cause lower net success.

Franchises or Alliances:

We have already discussed the debt to assets, liquidity and success of the company in the ratio analysis done earlier to examine the internal financial position of Real Estate Investment Trusts Generic Strategy which would provide more clearness concerning the truth that increasing the long term liability is not a practical choice for growth. One possible choice that can be evaluated even more is to give franchises of Real Estate Investment Trusts Generic Strategy or to have alliances with other companies which can promote growth with minimal capital expenditure.

Documentaries:

We can see how there is a higher orientation towards producing documentary films if we explore Real Estate Investment Trusts Generic Strategy position in its film distribution company. Although this does guarantee flow Hollywood movies which might lose their impact after the initial launch period, the fact still stays that documentaries do not guarantee profits growth especially as the marketplace share for these documentaries is restricted to the exact same sector. While Hollywood films are made in different genre, they also use the possibility of generating high earnings within the preliminary days of screening. So concentrating on documentaries in terms of broadening the film circulation business means limiting the number of releases to a couple of documentaries that might not be drawing in more than the existing audience. This highlights the truth that in order to draw in a greater number of audiences to Real Estate Investment Trusts Generic Strategy theatres, it is necessary to increase the number of films that are released under Real Estate Investment Trusts Generic Strategy name.