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The Craddock Cup Generic Strategy Case Study Help


The Craddock Cup Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic techniques that have been used by The Craddock Cup Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable development method for The Craddock Cup Generic Strategy.

Focus Strategy: Niche Marketing

We have gone over three possible options for The Craddock Cup Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these alternatives, a conversation concerning why The Craddock Cup Generic Strategy needs an alternative income growth design is shared below.

We have actually already discussed how The Craddock Cup Generic Strategy has 3 profits sources including its theatre operations, film circulation and system leasing. As we take a look at the earnings statements for 2004 to 2007, we can observe disparity in terms of success and development in profits. A fall in earnings specifically in 2006 and 2007 recommends that the business requires to focus on locations of development which can guarantee consistency in earnings growth and profitability.

As we check out each of the revenue sources for The Craddock Cup Generic Strategy, we can see how the system-leasing business of The Craddock Cup Generic Strategy has dependence on the expansion of theatres and even then there is a limitation in terms of the variety of theatres that can be opened up.

As far as the theatre operations are concerned, profits from this source are dependent on the variety of theatres that The Craddock Cup Generic Strategy operates. Together with that, broadening the number of theatres may cause high capital costs for The Craddock Cup Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital investment may result in 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 The Craddock Cup Generic Strategy balance sheet. We have already talked about the debt to properties, liquidity and success of the company in the ratio analysis done earlier to assess the internal financial position of The Craddock Cup Generic Strategy which would provide more clearness relating to the reality that increasing the long term liability is not a practical option for growth. This brings us to the conclusion that The Craddock Cup Generic Strategy is currently in a position where it needs to lower its dependability on income from theatre operations and needs to expand through alternative choices which need lower capital investment and promise greater net success. One possible alternative that can be evaluated even more is to offer franchises of The Craddock Cup Generic Strategy or to have alliances with other business which can promote growth with minimal capital expenditure. Nevertheless, the possibility of losing a total hold over the quality of services being provided might prevent additional orientation in this direction.

Documentaries:

If we explore The Craddock Cup Generic Strategy position in its movie circulation business, we can see how there is a greater orientation towards producing documentary films. Focusing on documentaries in terms of broadening the movie circulation business means restricting the number of releases to a few documentaries that may not be bring in more than the existing audience.