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The University Store Textbook Travails Generic Strategy Case Study Help


The University Store Textbook Travails Generic Strategy Generic Strategy Case Study HelpIn this section we would be examining the generic methods that have actually been used by The University Store Textbook Travails Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can result in a sustainable development technique for The University Store Textbook Travails Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic techniques, organisations have the alternative of operating as niche gamers where they focus on a smaller section of the marketplace. The University Store Textbook Travails Generic Strategy has the choice of operating as a specific niche gamer by making large format movies and systems rather than dealing with the mass market. We have actually discussed three possible alternatives for The University Store Textbook Travails Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these alternatives, a discussion concerning why The University Store Textbook Travails Generic Strategy requires an alternative earnings growth design is shared listed below.

We have actually already talked about how The University Store Textbook Travails Generic Strategy has three revenue sources including its theatre operations, film circulation and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe disparity in regards to success and growth in profits. A fall in net income particularly in 2006 and 2007 suggests that business requires to concentrate on areas of development which can guarantee consistency in income growth and success.

As we explore each of the profits sources for The University Store Textbook Travails Generic Strategy, we can see how the system-leasing organisation of The University Store Textbook Travails Generic Strategy has dependency on the expansion of theatres and even then there is a constraint in regards to the number of theatres that can be opened.

As far as the theatre operations are concerned, earnings from this source are dependent on the number of theatres that The University Store Textbook Travails Generic Strategy runs. In addition to that, expanding the variety of theatres may result in high capital costs for The University Store Textbook Travails Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense may result in lower net profitability.

Franchises or Alliances:

We have already gone over the debt to assets, liquidity and profitability of the company in the ratio analysis done earlier to assess the internal financial position of The University Store Textbook Travails Generic Strategy which would give more clearness concerning the fact that increasing the long term liability is not a possible option for growth. One possible option that can be examined even more is to give franchises of The University Store Textbook Travails Generic Strategy or to have alliances with other companies which can promote growth with minimal capital expenditure.

Documentaries:

If we check out The University Store Textbook Travails Generic Strategy position in its film circulation service, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of expanding the film circulation business means restricting the number of releases to a couple of documentaries that may not be drawing in more than the existing audience.