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Terra Lycos Profiting From Information Products Generic Strategy Case Study Help


Terra Lycos Profiting From Information Products Generic Strategy Generic Strategy Case Study HelpIn this area we would be examining the generic techniques that have actually been used by Terra Lycos Profiting From Information Products Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can result in a sustainable growth method for Terra Lycos Profiting From Information Products Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic techniques, companies have the alternative of operating as specific niche gamers where they concentrate on a smaller sized sector of the market. Terra Lycos Profiting From Information Products Generic Strategy has the choice of operating as a specific niche player by making big format movies and systems instead of catering to the mass market. We have talked about 3 possible alternatives for Terra Lycos Profiting From Information Products Generic Strategy which can be pursued in regards to specific niche marketing. Before we look at these options, a conversation concerning why Terra Lycos Profiting From Information Products Generic Strategy requires an alternative earnings growth design is shared listed below.

We have actually already gone over how Terra Lycos Profiting From Information Products Generic Strategy has three revenue sources including its theatre operations, film distribution and system leasing. As we look at the earnings statements for 2004 to 2007, we can observe disparity in terms of success and development in earnings. A fall in earnings especially in 2006 and 2007 suggests that business needs to concentrate on areas of development which can guarantee consistency in revenue growth and profitability.

As we explore each of the revenue sources for Terra Lycos Profiting From Information Products Generic Strategy, we can see how the system-leasing company of Terra Lycos Profiting From Information Products Generic Strategy has dependence on the expansion of theatres and even then there is a limitation in regards to the number of theatres that can be opened up.

As far as the theatre operations are concerned, earnings from this source depend on the number of theatres that Terra Lycos Profiting From Information Products Generic Strategy runs. Along with that, broadening the number of theatres may lead to high capital expenses for Terra Lycos Profiting From Information Products Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense may result in lower net success.

Franchises or Alliances:

We have currently talked about the debt to properties, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal financial position of Terra Lycos Profiting From Information Products Generic Strategy which would give additional clearness concerning the reality that increasing the long term liability is not a practical choice for growth. One possible choice that can be examined even more is to offer franchises of Terra Lycos Profiting From Information Products Generic Strategy or to have alliances with other business which can promote growth with very little capital expense.

Documentaries:

If we explore Terra Lycos Profiting From Information Products Generic Strategy position in its film distribution business, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of broadening the film distribution company indicates limiting the number of releases to a couple of documentaries that might not be drawing in more than the existing audience.