WhatsApp

Technical Note On Financial Leverage In Real Estate Generic Strategy Case Study Help


Technical Note On Financial Leverage In Real Estate Generic Strategy Generic Strategy Case Study HelpIn this area we would be assessing the generic methods that have actually been utilized by Technical Note On Financial Leverage In Real Estate Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can result in a sustainable development technique for Technical Note On Financial Leverage In Real Estate Generic Strategy.

Focus Strategy: Niche Marketing

We have actually discussed three possible options for Technical Note On Financial Leverage In Real Estate Generic Strategy which can be pursued in terms of niche marketing. Before we look at these alternatives, a discussion regarding why Technical Note On Financial Leverage In Real Estate Generic Strategy requires an alternative profits development model is shared below.

We have currently talked about how Technical Note On Financial Leverage In Real Estate Generic Strategy has three revenue sources including its theatre operations, film circulation and system leasing. As we take a look at the income statements for 2004 to 2007, we can observe disparity in terms of success and growth in incomes. A fall in net income especially in 2006 and 2007 recommends that the business needs to concentrate on locations of development which can promise consistency in earnings growth and success.

As we explore each of the earnings sources for Technical Note On Financial Leverage In Real Estate Generic Strategy, we can see how the system-leasing organisation of Technical Note On Financial Leverage In Real Estate Generic Strategy has reliance on the growth of theatres and even then there is a limitation in terms of the number of theatres that can be opened up.

As far as the theatre operations are worried, profits from this source are dependent on the variety of theatres that Technical Note On Financial Leverage In Real Estate Generic Strategy runs. In addition to that, expanding the variety of theatres may lead to high capital costs for Technical Note On Financial Leverage In Real Estate Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense might cause lower net profitability.

Franchises or Alliances:

We can see how the company has a long term debt of $ 160,000,000 if we look at Technical Note On Financial Leverage In Real Estate Generic Strategy balance sheet. We have already talked about the debt to possessions, liquidity and success of the company in the ratio analysis done earlier to examine the internal monetary position of Technical Note On Financial Leverage In Real Estate Generic Strategy which would offer additional clarity concerning the fact that increasing the long term liability is not a practical choice for development. This brings us to the conclusion that Technical Note On Financial Leverage In Real Estate Generic Strategy is currently in a position where it needs to lower its dependability on earnings from theatre operations and needs to expand through alternative choices which need lower capital expense and promise higher net profitability. One possible option that can be evaluated further is to offer franchises of Technical Note On Financial Leverage In Real Estate Generic Strategy or to have alliances with other business which can promote expansion with minimal capital expenditure. However, the possibility of losing a total hold over the quality of services being provided may prevent more orientation in this direction.

Documentaries:

If we check out Technical Note On Financial Leverage In Real Estate Generic Strategy position in its movie circulation service, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the movie distribution organisation means limiting the number of releases to a few documentaries that may not be bring in more than the current audience.