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Redhook Ale Brewery Generic Strategy Case Study Help


Redhook Ale Brewery Generic Strategy Generic Strategy Case Study HelpIn this area we would be evaluating the generic methods that have actually been used by Redhook Ale Brewery Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can cause a sustainable growth technique for Redhook Ale Brewery Generic Strategy.

Focus Strategy: Niche Marketing

We have actually discussed 3 possible options for Redhook Ale Brewery Generic Strategy which can be pursued in terms of niche marketing. Before we look at these options, a discussion relating to why Redhook Ale Brewery Generic Strategy requires an alternative revenue growth model is shared below.

We have actually already gone over how Redhook Ale Brewery Generic Strategy has 3 profits sources including its theatre operations, movie circulation and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe inconsistency in terms of profitability and development in profits. A fall in net income specifically in 2006 and 2007 recommends that business requires to focus on areas of growth which can promise consistency in profits development and success.

As we check out each of the income sources for Redhook Ale Brewery Generic Strategy, we can see how the system-leasing organisation of Redhook Ale Brewery Generic Strategy has reliance 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 concerned, incomes from this source are dependent on the number of theatres that Redhook Ale Brewery Generic Strategy operates. Together with that, expanding the variety of theatres might result in high capital expenses for Redhook Ale Brewery Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment may lead to lower net success.

Franchises or Alliances:

We can see how the business has a long term debt of $ 160,000,000 if we look at Redhook Ale Brewery Generic Strategy balance sheet. We have already discussed the financial obligation to assets, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal monetary position of Redhook Ale Brewery Generic Strategy which would provide further clearness concerning the truth that increasing the long term liability is not a practical alternative for growth. This brings us to the conclusion that Redhook Ale Brewery Generic Strategy is presently in a position where it requires to lower its reliability on earnings from theatre operations and needs to expand through alternative choices which need lower capital expense and assure greater net profitability. One possible alternative that can be examined further is to offer franchises of Redhook Ale Brewery Generic Strategy or to have alliances with other business which can promote expansion with very little capital investment. The possibility of losing a total hold over the quality of services being offered may avoid more orientation in this direction.

Documentaries:

We can see how there is a higher orientation towards producing documentary films if we explore Redhook Ale Brewery Generic Strategy position in its film circulation organisation. This does guarantee blood circulation Hollywood movies which may lose their effect after the initial launch duration, the reality still stays that documentaries do not promise earnings development especially as the market share for these documentaries is restricted to the very same segment. While Hollywood films are made in various category, they likewise use the possibility of producing high revenues within the preliminary days of screening. Focusing on documentaries in terms of expanding the film circulation business implies limiting the number of releases to a few documentaries that may not be attracting more than the existing audience. This highlights the fact that in order to bring in a greater number of audiences to Redhook Ale Brewery Generic Strategy theatres, it is essential to increase the variety of movies that are launched under Redhook Ale Brewery Generic Strategy name.