Spikes Volleyball Court
1) Perform a Business Sizeup
Spike’s Indoor Beach Volleyball and Rock Climbing Inc. caters to a niche market in the Canadian sports industry. As there were no indoor beach volleyball courts in Canada, Spikes faced little competition. The volleyball crazed locality of London, Ontario provided the perfect geographical location for the operations of Spikes. In addition to indoor beach volleyball courts, Spikes had also added an indoor rock climbing wall, a small restaurant with a bar, and had also upgraded the lighting, heating system, computer servers and had added a big-screen television in the lounge area. Spikes did face some competition in the rock-climbing wall division as there were 2 other competitors in the vicinity who offered similar services at comparable rates.
Holistically speaking, the business was doing immensely well and faced little or no environmental threat apart from the fact that the premises was not owned by the business itself. It was leased from another person and was constantly at risk of zoning laws banning the establishment, as it was labeled as a high intensity residential area. This meant that the lease owner could cancel Spikes lease at any reasonable notice and construct high-rise apartment buildings in its place however Spikes reasoned that since there was no pressure from the neighborhood he would not face too much risk in this regard. As it is, the cost of a potential lease cancellation cannot be quantified and will affect the going concern of the business.
Apart from that the business is in a very healthy condition, having around 130 regular teams per season that feed its main operations i.e. volleyball and Spikes has engineered various complementary services to squeeze more revenue out of its main operations which is mainly the restaurant bar and rock-climbing wall.
2) Analyze the expansion qualitatively.
The main aim of Misener was to encourage more people to stay after volleyball matches and games via the outdoor patio.
Spike’s Indoor Beach Volleyball and Rock Climbing Inc. caters to a niche market in the Canadian sports industry. As there were no indoor beach volleyball courts in Canada, Spikes faced little competition. The volleyball crazed locality of London, Ontario provided the perfect geographical location for the operations of Spikes. In addition to indoor beach volleyball courts, Spikes had also added an indoor rock climbing wall, a small restaurant with a bar, and had also upgraded the lighting, heating system, computer servers and had added a big-screen television in the lounge area. Spikes did face some competition in the rock-climbing wall division as there were 2 other competitors in the vicinity who offered similar services at comparable rates.
Holistically speaking, the business was doing immensely well and faced little or no environmental threat apart from the fact that the premises was not owned by the business itself. It was leased from another person and was constantly at risk of zoning laws banning the establishment, as it was labeled as a high intensity residential area. This meant that the lease owner could cancel Spikes lease at any reasonable notice and construct high-rise apartment buildings in its place however Spikes reasoned that since there was no pressure from the neighborhood he would not face too much risk in this regard. As it is, the cost of a potential lease cancellation cannot be quantified and will affect the going concern of the business.
Apart from that the business is in a very healthy condition, having around 130 regular teams per season that feed its main operations i.e. volleyball and Spikes has engineered various complementary services to squeeze more revenue out of its main operations which is mainly the restaurant bar and rock-climbing wall.
2) Analyze the expansion qualitatively.
The main aim of Misener was to encourage more people to stay after volleyball matches and games via the outdoor patio.