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Transformational Gaming Zyngas Social Strategy B Generic Strategy Case Study Help


Transformational Gaming Zyngas Social Strategy B Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic methods that have been used by Transformational Gaming Zyngas Social Strategy B Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can cause a sustainable growth technique for Transformational Gaming Zyngas Social Strategy B Generic Strategy.

Focus Strategy: Niche Marketing

Based on Michael porter's generic strategies, companies have the option of operating as niche gamers where they focus on a smaller sized segment of the market. Transformational Gaming Zyngas Social Strategy B Generic Strategy has the choice of operating as a specific niche player by making large format films and systems instead of dealing with the mass market. We have discussed three possible alternatives for Transformational Gaming Zyngas Social Strategy B Generic Strategy which can be pursued in regards to niche marketing. Before we look at these options, a conversation relating to why Transformational Gaming Zyngas Social Strategy B Generic Strategy requires an alternative income development design is shared listed below.

We have currently discussed how Transformational Gaming Zyngas Social Strategy B Generic Strategy has 3 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 inconsistency in terms of profitability and development in revenues. A fall in net income specifically in 2006 and 2007 suggests that the business needs to concentrate on areas of growth which can promise consistency in profits growth and profitability.

As we explore each of the revenue sources for Transformational Gaming Zyngas Social Strategy B Generic Strategy, we can see how the system-leasing company of Transformational Gaming Zyngas Social Strategy B Generic Strategy has dependency on the expansion of theatres and even then there is a restriction in terms of the number of theatres that can be opened.

As far as the theatre operations are worried, profits from this source are dependent on the variety of theatres that Transformational Gaming Zyngas Social Strategy B Generic Strategy operates. Along with that, broadening the number of theatres may lead to high capital expenses for Transformational Gaming Zyngas Social Strategy B Generic Strategy where the possibility of additional overheads in the form of interest payments on loans for capital expense might lead to lower net profitability.

Franchises or Alliances:

If we take a look at Transformational Gaming Zyngas Social Strategy B Generic Strategy balance sheet, we can see how the business has a long term debt of $ 160,000,000. We have already talked about the debt to assets, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal financial position of Transformational Gaming Zyngas Social Strategy B Generic Strategy which would offer further clearness relating to the reality that increasing the long term liability is not a practical choice for growth. This brings us to the conclusion that Transformational Gaming Zyngas Social Strategy B Generic Strategy is presently in a position where it needs to reduce its reliability on revenue from theatre operations and needs to broaden through alternative choices which require lower capital expense and guarantee higher net profitability. One possible alternative that can be assessed further is to offer franchises of Transformational Gaming Zyngas Social Strategy B Generic Strategy or to have alliances with other business which can promote growth with minimal capital expenditure. The possibility of losing a total hold over the quality of services being used may prevent further orientation in this direction.

Documentaries:

If we check out Transformational Gaming Zyngas Social Strategy B Generic Strategy position in its movie distribution company, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of broadening the movie distribution organisation suggests restricting the number of releases to a couple of documentaries that may not be drawing in more than the existing audience.