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Virginia Craftsmen Inc Generic Strategy Case Study Help


Virginia Craftsmen Inc Generic Strategy Generic Strategy Case Study HelpIn 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.

Focus Strategy: Niche Marketing

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.

Franchises or Alliances:

We have currently talked about the debt to properties, liquidity and profitability of the company in the ratio analysis done earlier to assess the internal monetary position of Virginia Craftsmen Inc Generic Strategy which would provide additional clearness relating to the truth that increasing the long term liability is not a practical option for development. One possible alternative that can be evaluated even more is to offer franchises of Virginia Craftsmen Inc Generic Strategy or to have alliances with other companies which can promote growth with very little capital expenditure.

Documentaries:

If we explore Virginia Craftsmen Inc Generic Strategy position in its movie circulation service, we can see how there is a greater orientation towards producing documentary. This does assure circulation Hollywood films which may lose their impact after the preliminary launch duration, the fact still remains that documentaries do not promise earnings development specifically as the market share for these documentaries is restricted to the very same section. While Hollywood films are made in various genre, they likewise use the possibility of creating high revenues within the initial days of screening. Focusing on documentaries in terms of broadening the movie circulation company suggests restricting the number of releases to a couple of documentaries that might not be drawing in more than the existing audience. This highlights the reality that in order to draw in a greater number of audiences to Virginia Craftsmen Inc Generic Strategy theatres, it is essential to increase the number of motion pictures that are launched under Virginia Craftsmen Inc Generic Strategy name.