Westlake Lanes Case Analysis
Key Issues
The key issue faced by general manager Shelby Givens of Westlake Lanes is whether or not to maintain the current practices of the business or seek new alternatives. She must convince the board that within her allotted one year, progress has been made in improving the business and ultimately convince them that profitability is in the foreseeable future and that their personal debt will be repaid.
Analysis
External Analysis: Porter’s Five Forces Analysis
Threat of new entrants: In regards to ease of entry, there is the possibility of new entrants. However, it is stated in the case that Westlake Lanes has an excellent location in downtown Raleigh and it would be hard for another entry to secure such a location. Also, seeing as Westlake Lanes has been around for over 30 years and has secured loyal recreational and league customers, it would be difficult for a new entrant to gain market share. However, Westlake Lanes has been faced with financial hardship and a new entrant could potentially use this to their advantage although it would be unlikely. Therefore, the threat of new entrants is relatively low.
Threat of substitutes: The threat of substitutes to Westlake Lanes is relatively high. It is stated in the case that Westlake Lanes’ main competition is not other bowling alleys, however a long list of other activities that consumers either find more enjoyable or less costly. Raleigh is one of the ten fastest-growing cities in the United States and therefore has seen large growth with the introduction of new shops, restaurants, etc. Ultimately, these other activities are threats to Westlake Lanes and therefore they face a high threat of substitutes.
Supplier power: Westlake Lanes has many different supplier needs such as food and drinks, health insurance, shoes and bowling equipment. It is made evident in the case that Shelby Givens was able to seek out new suppliers for all of the above needs ultimately reducing costs. Therefore, supplier
The key issue faced by general manager Shelby Givens of Westlake Lanes is whether or not to maintain the current practices of the business or seek new alternatives. She must convince the board that within her allotted one year, progress has been made in improving the business and ultimately convince them that profitability is in the foreseeable future and that their personal debt will be repaid.
Analysis
External Analysis: Porter’s Five Forces Analysis
Threat of new entrants: In regards to ease of entry, there is the possibility of new entrants. However, it is stated in the case that Westlake Lanes has an excellent location in downtown Raleigh and it would be hard for another entry to secure such a location. Also, seeing as Westlake Lanes has been around for over 30 years and has secured loyal recreational and league customers, it would be difficult for a new entrant to gain market share. However, Westlake Lanes has been faced with financial hardship and a new entrant could potentially use this to their advantage although it would be unlikely. Therefore, the threat of new entrants is relatively low.
Threat of substitutes: The threat of substitutes to Westlake Lanes is relatively high. It is stated in the case that Westlake Lanes’ main competition is not other bowling alleys, however a long list of other activities that consumers either find more enjoyable or less costly. Raleigh is one of the ten fastest-growing cities in the United States and therefore has seen large growth with the introduction of new shops, restaurants, etc. Ultimately, these other activities are threats to Westlake Lanes and therefore they face a high threat of substitutes.
Supplier power: Westlake Lanes has many different supplier needs such as food and drinks, health insurance, shoes and bowling equipment. It is made evident in the case that Shelby Givens was able to seek out new suppliers for all of the above needs ultimately reducing costs. Therefore, supplier