University Of Trent Generic Strategy Case Study Help
In this section we would be assessing the generic methods that have actually been used by University Of Trent Generic Strategy to highlight locations which can be targeted for highlighting an one-upmanship that can cause a sustainable growth method for University Of Trent Generic Strategy.
Focus Strategy: Niche Marketing
Based on Michael porter's generic techniques, businesses have the alternative of operating as niche players where they concentrate on a smaller sized segment of the market. University Of Trent Generic Strategy has the choice of operating as a niche player by making large format movies and systems rather than catering to the mass market. We have actually discussed 3 possible options for University Of Trent Generic Strategy which can be pursued in terms of niche marketing. Prior to we look at these options, a conversation concerning why University Of Trent Generic Strategy needs an alternative income development design is shared listed below.
We have actually currently discussed how University Of Trent Generic Strategy has three earnings sources including its theatre operations, film distribution and system leasing. As we take a look at the income declarations for 2004 to 2007, we can observe disparity in regards to success and development in profits. A fall in net income particularly in 2006 and 2007 suggests that business requires to focus on locations of development which can assure consistency in profits growth and success.
As we explore each of the revenue sources for University Of Trent Generic Strategy, we can see how the system-leasing company of University Of Trent Generic Strategy has reliance on the expansion of theatres and even then there is a constraint in regards to the number of theatres that can be opened up.
As far as the theatre operations are worried, incomes from this source depend on the variety of theatres that University Of Trent Generic Strategy operates. In addition to that, expanding the number of theatres might result in high capital costs for University Of Trent 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:
We can see how the company has a long term financial obligation of $ 160,000,000 if we look at University Of Trent Generic Strategy balance sheet. We have already talked about the financial obligation to assets, liquidity and profitability of the company in the ratio analysis done earlier to evaluate the internal financial position of University Of Trent Generic Strategy which would give additional clarity regarding the truth that increasing the long term liability is not a possible alternative for development. This brings us to the conclusion that University Of Trent Generic Strategy is presently in a position where it needs to reduce its dependability on revenue from theatre operations and needs to expand through alternative options which require lower capital investment and guarantee greater net success. One possible alternative that can be evaluated even more is to offer franchises of University Of Trent Generic Strategy or to have alliances with other companies which can promote growth with very little capital expenditure. However, the possibility of losing a complete hold over the quality of services being provided may prevent further orientation in this direction.
We can see how there is a greater orientation towards producing documentary movies if we check out University Of Trent Generic Strategy position in its movie circulation company. Although this does promise blood circulation Hollywood movies which might lose their impact after the preliminary launch period, the truth still remains that documentaries do not guarantee revenue development specifically as the market share for these documentaries is restricted to the same section. While Hollywood motion pictures are made in different genre, they likewise provide the possibility of creating high earnings within the preliminary days of screening. So focusing on documentaries in terms of broadening the film distribution service indicates restricting the variety of releases to a couple of documentaries that might not be attracting more than the present audience. This highlights the reality that in order to draw in a greater number of audiences to University Of Trent Generic Strategy theatres, it is necessary to increase the variety of motion pictures that are released under University Of Trent Generic Strategy name.