RSM415H1 Study Guide - Final Guide: Topnotch, Vending Machine, Variable Cost
Document Summary
Overview: small family bowling business facing sale at a massive loss to all involved. Shelby givens cut costs by 8. 5%, increased patronage by 30%, 6% revenue increase, now profitable. Customers: b2c, mid-high power, can choose from many activities. The demand is quite elastic to a change in price as seen when givens increased the price by 20%. League participation, recreational traffic and food and beverage sales all dropped. The largest demographic segment is ages below 16 and over 55. Both these segments possess significant buying power; the former in due to their parents and the latter due to their stable disposable income. Suppliers: food, machines, small business contracts, price shopping, labour, increasing cost, mid-low power. Competitors: 3 alleys in a few miles, low cost but high location barrier to entry, other activities, high-power. Young people 16-54 (52%), don"t have time (45%) or would rather do other activities (35%)
