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Roy Rogers Restaurants Generic Strategy Case Study Help


Roy Rogers Restaurants Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic strategies that have actually been used by Roy Rogers Restaurants Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can cause a sustainable development method for Roy Rogers Restaurants Generic Strategy.

Focus Strategy: Niche Marketing

We have actually discussed 3 possible alternatives for Roy Rogers Restaurants Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these options, a conversation relating to why Roy Rogers Restaurants Generic Strategy requires an alternative income growth design is shared below.

We have already gone over how Roy Rogers Restaurants Generic Strategy has three earnings sources including its theatre operations, movie distribution and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe inconsistency in terms of profitability and growth in incomes. A fall in net income specifically in 2006 and 2007 suggests that business needs to concentrate on locations of growth which can assure consistency in revenue development and profitability.

As we explore each of the earnings sources for Roy Rogers Restaurants Generic Strategy, we can see how the system-leasing company of Roy Rogers Restaurants Generic Strategy has dependency on the growth of theatres and even then there is a restriction in terms of the variety of theatres that can be opened.

As far as the theatre operations are worried, profits from this source are dependent on the variety of theatres that Roy Rogers Restaurants Generic Strategy runs. Along with that, broadening the number of theatres may lead to high capital expenses for Roy Rogers Restaurants Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense may result in lower net success.

Franchises or Alliances:

If we take a look at Roy Rogers Restaurants Generic Strategy balance sheet, we can see how the business has a long term financial obligation of $ 160,000,000. We have actually already gone over the debt to assets, liquidity and success of the company in the ratio analysis done earlier to assess the internal monetary position of Roy Rogers Restaurants Generic Strategy which would provide more clarity relating to the fact that increasing the long term liability is not a feasible alternative for growth. This brings us to the conclusion that Roy Rogers Restaurants Generic Strategy is currently in a position where it needs to decrease its dependability on income from theatre operations and requires to expand through alternative choices which need lower capital expense and promise higher net success. One possible choice that can be assessed further is to give franchises of Roy Rogers Restaurants Generic Strategy or to have alliances with other companies which can promote expansion with minimal capital investment. The possibility of losing a complete hold over the quality of services being used may avoid additional orientation in this direction.

Documentaries:

If we explore Roy Rogers Restaurants Generic Strategy position in its movie distribution business, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of broadening the film distribution organisation indicates restricting the number of releases to a couple of documentaries that may not be attracting more than the existing audience.