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Case Study Of Genting

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Much of Genting's success was due to its monopoly position as the sole casino owner in Malaysia. The increasingly conservative mood of the Muslim population in the country made it unlikely that new challengers would appear in the domestic market. However, that same shift in religious sentiment raised the possibility that Genting's own license might one day be withdrawn. At the same time, Genting faced new competition elsewhere in the region, as a number of neighboring countries began authorizing the construction of casinos. Genting took a multifaceted approach to confronting this situation. On the one hand, the company continued redeveloping the resort site itself away from its earlier emphasis on its casino operation to expand more broadly …show more content…

The company began operating casino cruises in southeast Asia, building up a fleet of 18 ships with more than 23,000 beds. By the end of the decade, Star Cruise was already the Asia Pacific region's largest cruise operator. The acquisition of NCL Holdings and its Miami, Florida-based Norwegian Cruise Lines in 2000, helped position the company as one of the world's top three cruise line operators. Genting also began expanding its hospitality operations into other markets, acquiring casino management and development contracts in such markets as Australia, the Bahamas, and the Philippines. The company also launched a new Property division, conducted through subsidiary Asiatic Indahpura, which began developing a 6,800-acre landsite in Kulai, Johor. Genting increasingly sought to expand its international holdings, while at the same time seeking to buttress its reliance on the more volatile tourism market with an extension into other industries. This effort was led in large part by Lim's son, Lim Kok Thay. In 1994, the company launched a new Paper & Packaging division through the creation of Genting International Paper holdings Ltd. and the acquisition of the Sanyen paper mill in Kuala Langat, the country's largest brown grade paper manufacturer. In 1998, the company expanded that operation downstream, launching production of corrugated packaging. The new subsidiary was then renamed the Genting Sanyen

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