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The Virginia Carlton Hunter Morgan Generic Strategy Case Study Help


The Virginia Carlton Hunter Morgan Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic strategies that have actually been used by The Virginia Carlton Hunter Morgan Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can result in a sustainable growth strategy for The Virginia Carlton Hunter Morgan Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic strategies, organisations have the option of operating as niche gamers where they concentrate on a smaller sized sector of the marketplace. The Virginia Carlton Hunter Morgan Generic Strategy has the option of operating as a niche gamer by making large format films and systems rather than accommodating the mass market. We have actually discussed three possible options for The Virginia Carlton Hunter Morgan Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these options, a conversation concerning why The Virginia Carlton Hunter Morgan Generic Strategy requires an alternative profits development model is shared below.

We have currently discussed how The Virginia Carlton Hunter Morgan Generic Strategy has three profits sources including its theatre operations, movie distribution and system leasing. As we look at the income declarations for 2004 to 2007, we can observe disparity in terms of success and development in incomes. A fall in net income specifically in 2006 and 2007 suggests that business requires to concentrate on locations of development which can assure consistency in revenue development and success.

As we check out each of the income sources for The Virginia Carlton Hunter Morgan Generic Strategy, we can see how the system-leasing company of The Virginia Carlton Hunter Morgan Generic Strategy has dependence on the expansion of theatres and even then there is a limitation in regards to the variety of theatres that can be opened.

As far as the theatre operations are concerned, incomes from this source depend on the variety of theatres that The Virginia Carlton Hunter Morgan Generic Strategy runs. Along with that, expanding the variety of theatres may result in high capital costs for The Virginia Carlton Hunter Morgan Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense might result in lower net success.

Franchises or Alliances:

If we look at The Virginia Carlton Hunter Morgan Generic Strategy balance sheet, we can see how the business has a long term financial obligation of $ 160,000,000. We have already talked about the debt to properties, liquidity and profitability of the company in the ratio analysis done earlier to examine the internal financial position of The Virginia Carlton Hunter Morgan Generic Strategy which would provide more clarity concerning the reality that increasing the long term liability is not a practical alternative for growth. This brings us to the conclusion that The Virginia Carlton Hunter Morgan Generic Strategy is presently in a position where it needs to decrease its reliability on revenue from theatre operations and requires to expand through alternative options which require lower capital expense and assure higher net success. One possible alternative that can be evaluated further is to provide franchises of The Virginia Carlton Hunter Morgan Generic Strategy or to have alliances with other companies which can promote growth with minimal capital expenditure. However, the possibility of losing a complete hold over the quality of services being provided may prevent additional orientation in this direction.

Documentaries:

If we explore The Virginia Carlton Hunter Morgan Generic Strategy position in its film distribution organisation, we can see how there is a higher orientation towards producing documentary films. Although this does assure blood circulation Hollywood movies which might lose their impact after the preliminary launch period, the truth still remains that documentaries do not guarantee profits development particularly as the market share for these documentaries is limited to the same section. While Hollywood films are made in different category, they also offer the possibility of creating high profits within the preliminary days of screening. Focusing on documentaries in terms of broadening the movie distribution service indicates limiting the number of releases to a couple of documentaries that may not be drawing in more than the existing audience. This highlights the truth that in order to draw in a greater number of audiences to The Virginia Carlton Hunter Morgan Generic Strategy theatres, it is necessary to increase the number of motion pictures that are launched under The Virginia Carlton Hunter Morgan Generic Strategy name.