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United Technologies Corporation Supplier Development Initiative Generic Strategy Case Study Help


United Technologies Corporation Supplier Development Initiative Generic Strategy Generic Strategy Case Study HelpIn this section we would be evaluating the generic methods that have actually been used by United Technologies Corporation Supplier Development Initiative Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can cause a sustainable growth strategy for United Technologies Corporation Supplier Development Initiative Generic Strategy.

Focus Strategy: Niche Marketing

According to Michael porter's generic techniques, organisations have the option of operating as niche players where they concentrate on a smaller sized section of the marketplace. United Technologies Corporation Supplier Development Initiative Generic Strategy has the choice of operating as a niche gamer by making big format films and systems rather than dealing with the mass market. We have actually discussed 3 possible options for United Technologies Corporation Supplier Development Initiative Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these alternatives, a discussion concerning why United Technologies Corporation Supplier Development Initiative Generic Strategy needs an alternative profits growth model is shared listed below.

We have actually currently gone over how United Technologies Corporation Supplier Development Initiative Generic Strategy has three income sources including its theatre operations, film distribution and system leasing. As we take a look at the earnings declarations for 2004 to 2007, we can observe inconsistency in regards to success and growth in revenues. A fall in net income particularly in 2006 and 2007 suggests that business needs to concentrate on areas of growth which can assure consistency in revenue development and success.

As we explore each of the revenue sources for United Technologies Corporation Supplier Development Initiative Generic Strategy, we can see how the system-leasing organisation of United Technologies Corporation Supplier Development Initiative Generic Strategy has dependence on the growth of theatres and even then there is a restriction in terms of the number of theatres that can be opened up.

As far as the theatre operations are concerned, profits from this source are dependent on the number of theatres that United Technologies Corporation Supplier Development Initiative Generic Strategy operates. Along with that, broadening the variety of theatres may lead to high capital costs for United Technologies Corporation Supplier Development Initiative Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might cause lower net profitability.

Franchises or Alliances:

If we take a look at United Technologies Corporation Supplier Development Initiative Generic Strategy balance sheet, we can see how the company has a long term debt of $ 160,000,000. We have actually already discussed the debt to properties, liquidity and profitability of the business in the ratio analysis done earlier to examine the internal financial position of United Technologies Corporation Supplier Development Initiative Generic Strategy which would offer additional clearness concerning the reality that increasing the long term liability is not a feasible alternative for growth. This brings us to the conclusion that United Technologies Corporation Supplier Development Initiative Generic Strategy is presently in a position where it requires to reduce its reliability on income from theatre operations and requires to broaden through alternative choices which need lower capital expense and guarantee higher net success. One possible option that can be examined further is to provide franchises of United Technologies Corporation Supplier Development Initiative Generic Strategy or to have alliances with other business which can promote expansion with very little capital investment. The possibility of losing a complete hold over the quality of services being offered may avoid further orientation in this direction.

Documentaries:

If we check out United Technologies Corporation Supplier Development Initiative Generic Strategy position in its film distribution business, we can see how there is a higher orientation towards producing documentary. This does assure circulation Hollywood motion pictures which might lose their impact after the initial launch duration, the truth still stays that documentaries do not pledge revenue development specifically as the market share for these documentaries is restricted to the same segment. While Hollywood movies are made in various genre, they likewise use the possibility of creating high profits within the initial days of screening. So concentrating on documentaries in terms of expanding the film circulation company indicates restricting the variety of releases to a couple of documentaries that might not be bring in more than the present audience. This highlights the fact that in order to attract a greater number of audiences to United Technologies Corporation Supplier Development Initiative Generic Strategy theatres, it is very important to increase the variety of motion pictures that are launched under United Technologies Corporation Supplier Development Initiative Generic Strategy name.