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Sanderson Farms Generic Strategy Case Study Help


Sanderson Farms Generic Strategy Generic Strategy Case Study HelpIn this area we would be assessing the generic methods that have actually been utilized by Sanderson Farms Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can cause a sustainable growth method for Sanderson Farms Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic methods, businesses have the alternative of operating as niche gamers where they focus on a smaller sized segment of the marketplace. Sanderson Farms Generic Strategy has the option of operating as a niche gamer by making big format movies and systems instead of catering to the mass market. We have actually talked about 3 possible options for Sanderson Farms Generic Strategy which can be pursued in regards to niche marketing. Before we look at these options, a discussion concerning why Sanderson Farms Generic Strategy needs an alternative revenue development design is shared below.

We have currently discussed how Sanderson Farms Generic Strategy has 3 revenue sources including its theatre operations, movie circulation and system leasing. As we take a look at the earnings declarations for 2004 to 2007, we can observe disparity in regards to profitability and development in earnings. A fall in earnings specifically in 2006 and 2007 suggests that the business requires to focus on locations of growth which can promise consistency in revenue growth and success.

As we check out each of the profits sources for Sanderson Farms Generic Strategy, we can see how the system-leasing business of Sanderson Farms Generic Strategy has dependence on the growth of theatres and even then there is a constraint in terms of the number of theatres that can be opened.

As far as the theatre operations are worried, profits from this source are dependent on the number of theatres that Sanderson Farms Generic Strategy runs. Along with that, expanding the variety of theatres might cause high capital costs for Sanderson Farms Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment may lead to lower net profitability.

Franchises or Alliances:

If we look at Sanderson Farms Generic Strategy balance sheet, we can see how the company has a long term debt of $ 160,000,000. We have already talked about the debt to assets, liquidity and profitability of the company in the ratio analysis done earlier to examine the internal monetary position of Sanderson Farms Generic Strategy which would give more clearness concerning the reality that increasing the long term liability is not a possible option for development. This brings us to the conclusion that Sanderson Farms Generic Strategy is presently in a position where it needs to decrease its dependability on income from theatre operations and requires to broaden through alternative choices which require lower capital expense and assure greater net profitability. One possible choice that can be evaluated even more is to offer franchises of Sanderson Farms Generic Strategy or to have alliances with other companies which can promote growth with very little capital expenditure. Nevertheless, the possibility of losing a total hold over the quality of services being offered might avoid further orientation in this direction.

Documentaries:

If we explore Sanderson Farms Generic Strategy position in its film distribution service, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the film circulation business suggests limiting the number of releases to a couple of documentaries that might not be attracting more than the existing audience.