The Gilmore Collection is a well-known family of businesses in the Grand Rapids area. It includes 13 local restaurants such as The B.O.B., Blue Water Grill, and Mangiamo! Greg Gilmore, the CEO has decided to purchase another business called Nick Fink’s Bar. It is yet another building of history to add to the collection. They plan to preserve and rehabilitate the site while giving people an alternative place to go instead of the chain restaurants.
Nick Fink’ Bar has been a family-owner restaurant for the past 60 years as a neighborhood bar. In October the bar will be owned by the Gilmore Collection and will be renovated. The current owners Mike and Nick Fink are not happy to see the building sold because of its history in the family, but they have recently seen slow business and high expenses. The bar’s long-time regulars don’t know how they feel about the situation. The prices are currently relatively low, and the atmosphere is relaxed and comfortable. That is what the regulars are afraid of changing ? the prices increasing and the atmosphere becoming too fancy.
Analysis and Strategic Alternatives
There are two models of competitive advantage: resources and capabilities. The Gilmore Collection possesses competitive advantages in both of these. Their 13 different venues of different style, food, and atmosphere widen their horizon giving them a bigger net to catch their customers. This allows the company to view changes in the restaurant/bar industry in all types of settings so they can adapt quickly. Also, their locations are a definite resource. The buildings they chose to locate within have history and give their restaurants a very local and prideful feel.
A capability that the firm possesses is their capability to integrate new ...