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Student Educational Loan Fund Inc Abridged Generic Strategy Case Study Help


Student Educational Loan Fund Inc Abridged Generic Strategy Generic Strategy Case Study HelpIn this section we would be assessing the generic techniques that have actually been used by Student Educational Loan Fund Inc Abridged Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can result in a sustainable growth technique for Student Educational Loan Fund Inc Abridged Generic Strategy.

Focus Strategy: Niche Marketing

We have discussed 3 possible options for Student Educational Loan Fund Inc Abridged Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these options, a conversation regarding why Student Educational Loan Fund Inc Abridged Generic Strategy needs an alternative earnings growth design is shared below.

We have actually already gone over how Student Educational Loan Fund Inc Abridged Generic Strategy has three income sources including its theatre operations, movie distribution and system leasing. As we take a look at the income declarations for 2004 to 2007, we can observe disparity in terms of profitability and development in revenues. A fall in earnings particularly in 2006 and 2007 suggests that business needs to focus on locations of development which can promise consistency in revenue development and profitability.

As we explore each of the earnings sources for Student Educational Loan Fund Inc Abridged Generic Strategy, we can see how the system-leasing business of Student Educational Loan Fund Inc Abridged Generic Strategy has reliance on the expansion of theatres and even then there is a restriction in regards to the number of theatres that can be opened up.

As far as the theatre operations are worried, revenues from this source depend on the number of theatres that Student Educational Loan Fund Inc Abridged Generic Strategy operates. In addition to that, broadening the variety of theatres might result in high capital expenses for Student Educational Loan Fund Inc Abridged Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment may result in lower net success.

Franchises or Alliances:

We can see how the company has a long term debt of $ 160,000,000 if we look at Student Educational Loan Fund Inc Abridged Generic Strategy balance sheet. We have actually currently gone over the debt to possessions, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal monetary position of Student Educational Loan Fund Inc Abridged Generic Strategy which would provide more clarity relating to the reality that increasing the long term liability is not a feasible option for growth. This brings us to the conclusion that Student Educational Loan Fund Inc Abridged Generic Strategy is presently in a position where it requires to minimize its reliability on revenue from theatre operations and needs to expand through alternative options which need lower capital expense and assure greater net success. One possible choice that can be evaluated even more is to give franchises of Student Educational Loan Fund Inc Abridged Generic Strategy or to have alliances with other business which can promote expansion with very little capital investment. The possibility of losing a complete hold over the quality of services being provided might avoid further orientation in this direction.

Documentaries:

If we explore Student Educational Loan Fund Inc Abridged Generic Strategy position in its movie circulation company, we can see how there is a greater orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the film circulation service implies restricting the number of releases to a couple of documentaries that might not be drawing in more than the existing audience.