KEY ISSUE:
Shelby Givens, the general manager of Westlake Bowling Lanes, after having brought back some of Westlake’s profitability in her 9-month tenure by reducing 8.5% of cost and raising prices of service, now is concerning how to convince the board members- Given’s uncle and two family friends-to support one of her bold strategies for expending the business and how to ensure the board their personal investments will be repaid on time.
INTERNAL ANALYSIS:
VRINE Model
1)Value: That Westlake Lanes business has been running over 30 years and being the only bowling center in downtown Raleigh have build customer loyalty and reputation which are very valuable for Westlake Lanes. Also, Westlake Lane’s league bowlers that guarantee ongoing revenue
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Therefore, Westlake Lanes is facing the risk being replaced by other new emerging and attractive activities. Direct threats from other bowling alley don’t exist.
3）Supplier Power(Low): Westlake Lanes has many small supplier for pizza, bowling shoes, beverages, cleaning supplements , cups for the bar, etc. In the case, Givens switched to suppliers who offer better deals, canceled most of the existing service providers and leveraged the her membership discounts from Bowling Proprietors Association of America to save fixed costs. It won’t be hard for Westlake Lanes to switch to another supplier if one supplier raises the price too much. The supplier power, therefore, is low.
4）Buyer Power(Medium to High): That the buying power of Westlake’s customers is relatively high can be illustrated from the fact that the overall revenue only dropped by 3% when Givens increased the price by 20%. According to Givens’ customer demographic research, the largest segment of customer is people over 55 who have relatively high buying power mainly due to their stable income. The buying power of the second largest customer segment- people under 16-may be a little bit lower for their money is mostly from their
Devondale is an Australian company that specialized in selling wide span of dairy categories, such as, milk, spreads, and cheese products. This company is formed in 1950 with dairy farmers as their major suppliers. In 2013 – 2014, Devondale is contributing around 3.4 billion liters of milk or estimated around 37% of the Australian market, and generating $2.9 billion dollars as the revenue in excess.
Transition: First, I want to talk about the equipment used in the game of bowling.
There are a number of smaller players but lack the public existence and retail footprint of their larger counterparts. With such high levels of market absorption, both HD and LOW enjoy high bargaining power with suppliers of goods. The two companies vary significantly in terms of the strategies they employ to compel consumer traffic. Home Depot centre of attention is customer service, while Lowe’s offers discounts to improve sales. Home Depot has determined on customer service as a driver to grow customer traffic and sales, Lowe has battled mainly on the basis of lower prices. Home Depot has a status for lesser prices and more pro-friendly impression where Lowe’s is trying to capture the traditional do-it-yourself customer by trying to appeal the female customer, who the company declares, is responsible for eighty percent of home improvement
never bowled before come out to support the tournament and to see how much fun they had
By targeting business travelers, we were able to make more profits. Despite the availability of close substitute (competitor), business travelers remained as our major customers and thus boost our profits.
Bargaining power of suppliers is low since there are alternative weight management platforms such as Jenny Craig, or Curves. The supplier is dominated by a few companies and is more concentrated than the industry it sells to. Also, with an industry as large as weight management, suppliers are more prone to exert power as a particular industry does not represent a significant fraction of its sales.
Marketing at the Vanguard Group. In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers. SITUATION ANALYSIS Highlighted SWOT Strengths Low fees strategy - a good idea.
The greatest insight I found from the book surrounds the customers’ both direct and indirect influence on a company’s success. Obviously, for a company to be successful and last for generations there must be customers to buy the company’s products or service. However, I did not realize that the faster things move through a business to a customer, the better off the business is. By paying for a product, customers free up working capital, which equals a higher return for the outputting company. This book would be a great addition to anyone’s library, but especially those who have just begun working in the corporate world.
Buyer power is very low in this market because one customer’s decision to use the service or not to use it will not affect the overall market. Likewise, one customer’s dissatisfaction will not influence a significant number of other c...
price as the major decision-making tool for customers (“Global Consumer Electronics”, 2013). This lack of
The bowling alley, once we walked through the door, resembled one at which I’d worked when I was thirteen. Golden paisley in cornelian frame on a cobalt blue field of worn carpet: the familiar dullness of suburban existence. I thought of flipping pizzas in another life as the muted rumble of bowling balls thundered down maple lanes.
“Bowling has one of the longest and richest histories of all sports, dating back approximately 4,000 years ago to Greece and Rome.” (Blau, What Types of Physical Benefits Can Be Obtained From Bowling?) For as long as bowling has been around and as many people a year play it, there are still some things that are hidden. The sport of bowling provides a wide variety of benefits. These benefits including social, physical, and financial positives.
In other words, their purchasing power is more focused on their need, health, and efficiency and cost effective. It is with this in mind, this writer would say that there lies a possibility for a company to cater to both its best interest and that of the consumer conjointly. Without customers, there would not be any company; therefore, a secure partnership between the company and customers would be more beneficial for both parties, in that the customers would be loyal to the company based on if they feel valued and if their needs are being met by the company. The company can foster this partnership by building a strong customer relationship management – where they have a customer-centric model in which they learn ways to enhance their product and service through feedback received from the customers. Here, both interests of the company and the customer will be
To effectively sell a product or service, organizations have to really know how customers behave, regarding to what they buy. The study
All items are hand-picked and have been established for 3 years. Mr Price will need to combat this threat by closing the gap where potential customers are escaping by merging businesses, or creating a competitive advantage. A competitive advantage is achieved by having lower prices, better quality, customer’s loyalty or best service. (Retief, 2015)