In this area we would be evaluating the generic techniques that have been utilized by Williams 2002 Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can result in a sustainable development method for Williams 2002 Generic Strategy.
As per Michael porter's generic techniques, companies have the alternative of operating as specific niche players where they concentrate on a smaller sized sector of the market. Williams 2002 Generic Strategy has the option of operating as a specific niche gamer by making large format movies and systems instead of accommodating the mass market. We have actually talked about 3 possible alternatives for Williams 2002 Generic Strategy which can be pursued in terms of specific niche marketing. Before we look at these alternatives, a discussion concerning why Williams 2002 Generic Strategy requires an alternative profits growth model is shared listed below.
We have currently discussed how Williams 2002 Generic Strategy has three income sources including its theatre operations, movie distribution and system leasing. As we take a look at the earnings statements for 2004 to 2007, we can observe inconsistency in regards to profitability and development in earnings. 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 earnings development and success.
As we check out each of the profits sources for Williams 2002 Generic Strategy, we can see how the system-leasing company of Williams 2002 Generic Strategy has dependency on the expansion of theatres and even then there is a restriction in terms of the variety of theatres that can be opened.
As far as the theatre operations are worried, profits from this source depend on the number of theatres that Williams 2002 Generic Strategy operates. In addition to that, expanding the variety of theatres may lead to high capital expenses for Williams 2002 Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might result in lower net success.