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Snow Canyon Resort Paradise Ski Lift Generic Strategy Case Study Help


Snow Canyon Resort Paradise Ski Lift Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic methods that have actually been used by Snow Canyon Resort Paradise Ski Lift Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can result in a sustainable growth strategy for Snow Canyon Resort Paradise Ski Lift Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic methods, organisations have the alternative of operating as specific niche gamers where they concentrate on a smaller sized section of the market. Snow Canyon Resort Paradise Ski Lift Generic Strategy has the choice of operating as a niche player by making big format films and systems rather than catering to the mass market. We have gone over three possible options for Snow Canyon Resort Paradise Ski Lift Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we take a look at these options, a conversation concerning why Snow Canyon Resort Paradise Ski Lift Generic Strategy needs an alternative profits growth design is shared listed below.

We have currently talked about how Snow Canyon Resort Paradise Ski Lift Generic Strategy has three income sources including its theatre operations, movie distribution and system leasing. As we take a look at the earnings statements for 2004 to 2007, we can observe inconsistency in terms of profitability and growth in profits. A fall in earnings particularly in 2006 and 2007 recommends that business needs to concentrate on areas of growth which can guarantee consistency in revenue development and profitability.

As we explore each of the earnings sources for Snow Canyon Resort Paradise Ski Lift Generic Strategy, we can see how the system-leasing business of Snow Canyon Resort Paradise Ski Lift Generic Strategy has dependence on the growth of theatres and even then there is a constraint in regards to the number of theatres that can be opened up.

As far as the theatre operations are concerned, revenues from this source are dependent on the variety of theatres that Snow Canyon Resort Paradise Ski Lift Generic Strategy operates. Together with that, expanding the number of theatres may result in high capital costs for Snow Canyon Resort Paradise Ski Lift Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense may cause lower net profitability.

Franchises or Alliances:

We can see how the business has a long term debt of $ 160,000,000 if we look at Snow Canyon Resort Paradise Ski Lift Generic Strategy balance sheet. We have currently talked about the financial obligation to properties, liquidity and success of the business in the ratio analysis done earlier to assess the internal financial position of Snow Canyon Resort Paradise Ski Lift Generic Strategy which would offer additional clarity regarding the reality that increasing the long term liability is not a possible option for growth. This brings us to the conclusion that Snow Canyon Resort Paradise Ski Lift Generic Strategy is presently in a position where it requires to minimize its reliability on earnings from theatre operations and requires to broaden through alternative options which need lower capital investment and guarantee higher net profitability. One possible option that can be evaluated even more is to give franchises of Snow Canyon Resort Paradise Ski Lift Generic Strategy or to have alliances with other business which can promote growth with very little capital expenditure. However, the possibility of losing a complete hold over the quality of services being used might avoid additional orientation in this direction.

Documentaries:

If we check out Snow Canyon Resort Paradise Ski Lift Generic Strategy position in its film distribution company, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of broadening the movie distribution service means restricting the number of releases to a few documentaries that might not be bring in more than the present audience.