WhatsApp

Robert Mondavi Corp Caliterra B Generic Strategy Case Study Help


Robert Mondavi Corp Caliterra B Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic strategies that have been utilized by Robert Mondavi Corp Caliterra B Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can result in a sustainable growth strategy for Robert Mondavi Corp Caliterra B Generic Strategy.

Focus Strategy: Niche Marketing

We have talked about three possible alternatives for Robert Mondavi Corp Caliterra B Generic Strategy which can be pursued in terms of niche marketing. Before we look at these alternatives, a discussion relating to why Robert Mondavi Corp Caliterra B Generic Strategy needs an alternative revenue development design is shared listed below.

We have already discussed how Robert Mondavi Corp Caliterra B Generic Strategy has three income sources including its theatre operations, film circulation and system leasing. As we look at the income statements for 2004 to 2007, we can observe disparity in terms of profitability and growth in incomes. A fall in earnings especially in 2006 and 2007 suggests that business needs to concentrate on locations of growth which can guarantee consistency in revenue growth and profitability.

As we check out each of the profits sources for Robert Mondavi Corp Caliterra B Generic Strategy, we can see how the system-leasing company of Robert Mondavi Corp Caliterra B Generic Strategy has dependency on the growth of theatres and even then there is a constraint in terms of the number 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 Robert Mondavi Corp Caliterra B Generic Strategy operates. Along with that, expanding the number of theatres may cause high capital expenses for Robert Mondavi Corp Caliterra B Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment might result in lower net profitability.

Franchises or Alliances:

If we take a look at Robert Mondavi Corp Caliterra B Generic Strategy balance sheet, we can see how the company has a long term financial obligation of $ 160,000,000. We have actually already discussed the financial obligation to assets, liquidity and profitability of the business in the ratio analysis done earlier to assess the internal financial position of Robert Mondavi Corp Caliterra B Generic Strategy which would provide more clarity relating to the reality that increasing the long term liability is not a possible choice for growth. This brings us to the conclusion that Robert Mondavi Corp Caliterra B Generic Strategy is presently in a position where it needs to decrease its dependability on revenue from theatre operations and requires to expand through alternative choices which require lower capital investment and guarantee greater net success. One possible alternative that can be evaluated even more is to offer franchises of Robert Mondavi Corp Caliterra B Generic Strategy or to have alliances with other companies which can promote growth with minimal capital investment. Nevertheless, the possibility of losing a complete hold over the quality of services being offered might prevent more orientation in this direction.

Documentaries:

If we check out Robert Mondavi Corp Caliterra B Generic Strategy position in its movie distribution business, we can see how there is a greater orientation towards producing documentary. Although this does guarantee flow Hollywood movies which might lose their effect after the initial launch period, the reality still remains that documentaries do not promise income growth specifically as the market share for these documentaries is restricted to the very same segment. While Hollywood movies are made in various category, they likewise provide the possibility of creating high revenues within the initial days of screening. Focusing on documentaries in terms of expanding the film distribution business suggests restricting the number of releases to a couple of documentaries that may not be drawing in more than the current audience. This highlights the fact that in order to attract a greater number of audiences to Robert Mondavi Corp Caliterra B Generic Strategy theatres, it is very important to increase the variety of motion pictures that are launched under Robert Mondavi Corp Caliterra B Generic Strategy name.