Westlake Lines

3009 Words13 Pages
Introduction Westlake Bowling Lanes is a small business in downtown Raleigh. It was founded by late Dane Sugar and is currently owned by Sugar’s Raleigh-based son, along with a pair of his close friends. During Sugar’s lifetime, he managed every aspect of the business, but after his death in October, 2008, the new board of directors failed in hiring a suitable business manager, until 2009, when they hired Shelby Givens (Sugar’s granddaughter). The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to…show more content…
Capabilities refer to a firm’s skill in using its resources to create goods and services. During the 1970s and 1980s, Westlake lanes hosted a steady stream of family bowlers and birthday parties. Mr. Sugar also cultivated popular bowling leagues, 32 weeks in duration, for his Raleigh friends and neighbours. However, the capabilities of Westlake lanes can be described as a commodity that can be readily found. The VRINE Model | | Test | Competitive Implications | Performance Implications | Valuable | Westlake Lanes has been in existence for over 30 years and this makes it valuable because of the customers’ sense of trust and loyalty towards it and also because of its prime location in downtown close to lively neighbourhoods. Givens educational background and skills increases the viability of the business. | Therefore, it satisfies the value requirement. Although, this is not an advantage, because value is just a necessary tool for competing in the industry. | These resources have helped it achieve normal profit (i.e., profit that covers input and capital costs), up until now. | Rare | Westlake Lanes had the capability to bring back old memories by playing the seventies and eighties music which is unique. Also, loyalty is not easy to buy. West lake also has a very good relationship with its lenders. | Valuable resources which are also rare convey a competitive advantage, but its relative permanence is not assured. The
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