In 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.
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.