In this area we would be examining the generic techniques that have been used by Revere Street Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can cause a sustainable development method for Revere Street Generic Strategy.
As per Michael porter's generic techniques, services have the alternative of operating as niche players where they concentrate on a smaller segment of the marketplace. Revere Street Generic Strategy has the choice of operating as a niche player by making big format movies and systems rather than accommodating the mass market. We have talked about three possible options for Revere Street Generic Strategy which can be pursued in regards to specific niche marketing. Before we take a look at these options, a conversation regarding why Revere Street Generic Strategy needs an alternative profits growth model is shared listed below.
We have actually currently discussed how Revere Street Generic Strategy has three earnings 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 regards to profitability and growth in incomes. A fall in net income particularly in 2006 and 2007 suggests that the business requires to focus on areas of development which can guarantee consistency in revenue growth and success.
As we explore each of the profits sources for Revere Street Generic Strategy, we can see how the system-leasing organisation of Revere Street Generic Strategy has dependence on the growth of theatres and even then there is a constraint in terms of the variety of theatres that can be opened up.
As far as the theatre operations are worried, earnings from this source depend on the number of theatres that Revere Street Generic Strategy operates. In addition to that, expanding the variety of theatres might cause high capital expenses for Revere Street Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment may cause lower net success.