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Westlake Lanes Case

In: Business and Management

Submitted By janeyg55
Words 1907
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Problem Identification Shelby Givens, general manager of Westlake Bowling Lanes has worked over a 9 month period to try and get the company back on its feet. Although Westlake generated its first month of profit in over 2 years, they still weren’t close to paying back the loan from the board members. Shelby has come up with 2 ideas she thinks will revive the business and attract new customers and she is ready to present them to the board. Ultimately, the board members will be the ones to decide if they will support her, or sell the business. Will Shelby be able to convince the board members one of her ideas is worth pursing to save the business from liquidation and generate future revenue?

External Analysis
Porters 5 Forces:
Threat of New Entrants
With bowling being the most popular played sport in the United States, entering the business is fairly easy, but entering the business in Raleigh would be more difficult. Westlake Bowling Lanes has a prime location downtown close to lively neighborhoods and restaurants. Westlake Lanes has been around for over 30 years and has loyal customers and a strong relationship with those customers, giving them an advantage over possible new entrants. It would be difficult for a new bowling alley to obtain the location and customer relations that Westlake already has secured; therefore threat of new entrants is relatively low.

Threat of Substitutes:
Threat of substitutes is fairly high because there are many alternative activities customers can choose from around the area, such as rock-climbing centers, laser tag, and happy hours. Cocktails lounges, venues that have kid focused activities and entertainment venues are all indirect substitutes to Westlake. New shops, galleries and restaurants popped up during the town’s growth in the downtown neighborhood and are all threats to Westlake. The direct substitute of...

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