In this area we would be examining the generic methods that have been utilized by Virginia Craftsmen Inc Generic Strategy to highlight locations which can be targeted for highlighting a competitive edge that can cause a sustainable growth strategy for Virginia Craftsmen Inc Generic Strategy.
As per Michael porter's generic techniques, businesses have the option of operating as niche players where they concentrate on a smaller section of the market. Virginia Craftsmen Inc Generic Strategy has the choice of operating as a niche gamer by making big format films and systems instead of dealing with the mass market. We have actually talked about three possible options for Virginia Craftsmen Inc Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these alternatives, a conversation regarding why Virginia Craftsmen Inc Generic Strategy needs an alternative profits growth design is shared below.
We have already talked about how Virginia Craftsmen Inc Generic Strategy has three earnings sources including its theatre operations, movie 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 earnings especially in 2006 and 2007 recommends that the business requires to concentrate on locations of growth which can promise consistency in income development and success.
As we check out each of the income sources for Virginia Craftsmen Inc Generic Strategy, we can see how the system-leasing business of Virginia Craftsmen Inc Generic Strategy has reliance on the growth 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, earnings from this source depend on the variety of theatres that Virginia Craftsmen Inc Generic Strategy runs. Together with that, broadening the variety of theatres might result in high capital costs for Virginia Craftsmen Inc Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital investment may lead to lower net success.