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The Recs Project C Generic Strategy Case Study Help


The Recs Project C Generic Strategy Generic Strategy Case Study HelpIn this area we would be evaluating the generic methods that have actually been utilized by The Recs Project C Generic Strategy to highlight areas which can be targeted for highlighting an one-upmanship that can lead to a sustainable growth technique for The Recs Project C Generic Strategy.

Focus Strategy: Niche Marketing

We have gone over 3 possible alternatives for The Recs Project C Generic Strategy which can be pursued in terms of specific niche marketing. Prior to we look at these alternatives, a discussion regarding why The Recs Project C Generic Strategy needs an alternative earnings growth model is shared listed below.

We have currently talked about how The Recs Project C Generic Strategy has three income sources including its theatre operations, movie circulation and system leasing. As we take a look at the earnings declarations for 2004 to 2007, we can observe inconsistency in terms of profitability and development in earnings. A fall in earnings specifically in 2006 and 2007 recommends that business requires to concentrate on locations of growth which can assure consistency in earnings growth and profitability.

As we explore each of the income sources for The Recs Project C Generic Strategy, we can see how the system-leasing business of The Recs Project C Generic Strategy has reliance on the expansion of theatres and even then there is a limitation in terms of the number of theatres that can be opened up.

As far as the theatre operations are worried, profits from this source are dependent on the number of theatres that The Recs Project C Generic Strategy runs. Together with that, expanding the number of theatres may result in high capital costs for The Recs Project C Generic Strategy where the possibility of further overheads in the form of interest payments on loans for capital expense might lead to lower net profitability.

Franchises or Alliances:

We can see how the business has a long term debt of $ 160,000,000 if we look at The Recs Project C Generic Strategy balance sheet. We have currently gone over the financial obligation to possessions, liquidity and success of the company in the ratio analysis done earlier to evaluate the internal monetary position of The Recs Project C Generic Strategy which would offer further clearness regarding the truth that increasing the long term liability is not a possible option for growth. This brings us to the conclusion that The Recs Project C Generic Strategy is currently in a position where it needs to reduce its dependability on profits from theatre operations and requires to broaden through alternative choices which need lower capital expense and promise greater net profitability. One possible option that can be examined even more is to offer franchises of The Recs Project C Generic Strategy or to have alliances with other business which can promote expansion with very little capital expenditure. Nevertheless, the possibility of losing a total hold over the quality of services being provided may avoid additional orientation in this direction.

Documentaries:

If we check out The Recs Project C Generic Strategy position in its movie circulation organisation, we can see how there is a higher orientation towards producing documentary movies. Focusing on documentaries in terms of expanding the movie circulation company indicates restricting the number of releases to a few documentaries that might not be bring in more than the current audience.