Westlake Lanes Case Essay
Professor: Dr. Jonathan Lee
75-498 Section 2
Submitted By: Mukund Gokulka
Identification of Issues: Westlake Lanes have been facing major problems in their business and was in a critical stage. Shelby Givens, the newly general manager appointed by the board is concerned whether she could bring back this business to profitability in a year’s time. After her 9-month tenure Givens bought the business back to profitability for the first time in two years. She was still worried whether the business at this rate could payback the loans owed to their board members and after analysing it competitors Givens comes up with alternatives in order to payback its board. …show more content…
External Analysis: The external analysis is also important to the business because it determines the strength of the market and competitors. Though Westlake didn’t have any direct competition since being only one in Raleigh downtown it had competition from all other substitute entertainment businesses. Now, lets examine the competition using important strategic concepts such as Porters five forces and Limited Pestel Analysis.
Porter five force Model:
Threat of New Entrants: It is relatively easy to enter in to this industry but there are some factors which only Westlake is benefited from such as location. As it is located in the Raleigh downtown where there are lively people and restaurants the possibility of new entrants are really low due to lack of availability of space and high prices. Westlake Lanes has dominance over potential new entrants due to its existence for over 30 years. Essentially, this business has a rapport amongst the current existent recreational and league customers.
Buyers Power: The Buyers power can be ranked as medium to high because the business mostly depends on its customers. Most of the Westlake Lanes customer are from segment below 16 and above 55 years. When Givens raised the prices by 20% and left food and beverage untouched she could see