Inustry Competitor Analysis-Casino Hotel

2008 brought some problems for MGM. On October 29th of that year, MGM reported a sixty-seven percent plunge in third-quarter earnings, due mostly in part to lagging revenues from its Las Vegas properties. On that same day, MGM decided to halt a five million dollar Atlantic City project which was to be built on land next to Borgata Hotel and Casino. Shortly after this announcement, New Jersey gambling regulators were set to deny MGM's suitability to operate casinos in New Jersey. This was due mainly in part to their partner, Pansy Ho, who New Jersey regulators believed could not operate independently of her father, Stanley Ho. This forced MGM to sell their New Jersey property, Borgata Hotel and Casino, which was a highly profitable piece of business. Finally, at the end of 2008, MGM decided to sell its Las Vegas Treasure Island property. Around the same time, MGM also introduced Jim Murren as their new CEO. Murren was behind many of the major acquisitions that helped transform MGM and had been repeatedly honored as the gaming and lodging industry's top CFO by Institutional Investor magazine. This promotion came at an important time as MGM had fallen on some hard times.

Full-blown Casinos: House Bill 1724 by Jose Menendez (R-San Antonio) and Jim Pitts (R-Waxahachie), as well as its Senate version by Sen. Rodney Ellis (D-Houston) would establish full-blown casino

It wasn’t until 1969 when Nevada changed the laws and allowed publicly-traded corporations to own casinos. The state made a common sense compromise requiring that only major shareholders be licensed. The importance of that decision can’t be understated as it marked a new beginning for rooting out the corruption of organized crime from legalized gambling. That change allowed greater transparency which slowly collapsed the mafia’s control of Las Vegas. In 1971, Harrah’s became one of the first Nevada casinos to sell their shares publicly. William F. Harrah, along with his father, had first set up shop in Reno in 1937. Harrah originally opened a bingo hall, but he later expanded his business into a casino empire. By 1973 his company was the first casino stock sold on the New York Stock Exchange and in 2005 Harrah’s became the largest casino business in the

MGM Resorts International, NAICS Code 721120 are a sound global hospitality company that is featured in the Fortune 500 that operates an assortment of portfolios of destination resort brands. The operations of the company are divided into two divisions that include the MGM China as well as the Wholly Owned Domestic Resorts. Via the division on Wholly Owned Domestic Resorts, the company manages, owns and operates 15 resorts located in Nevada, Mississippi and Michigan. The resorts located in Las Vegas comprise of the MGM Grand Las Vegas, Bellagio, the Mirage, Mandalay Bay, Monte Carlo, Luxor, Excalibur, Circus-Circus and New York-New York. Resorts located in other cities in Nevada are the Gold Strike in Jean, Circus-Circus in Reno and Railroad Pass in Henderson. Beau Rivage and Gold Strike are in Mississippi and MGM Grand Detroit is in Michigan. The organization additionally possesses Shadow Creek, an elite golf course found ten miles north of its Las Vegas Strip resorts, and Primm Valley Golf Club at the California/Nevada state line. The company owns additional land adjacent to Borgata, a portion of which consists of common roads, landscaping and master plan improvements, and a portion of which was planned for a wholly-owned development, MGM Grand Atlantic City ("Market Research Reports - Research and Markets - Page unavailable," n.d.). The company additionally owns over 50% of other properties in Nevada and Illinois. For the concurrent segment, MGM

Mergers and acquisitions are common in the hotel industry. One of the most recent is the acquisition of hotels from CTF Holdings Ltd. (ElBoghdady, Washington Post) This acquisition caused second quarter profits to drop, however second quarter revenue jumped to 2.66 billion up 11% from 2.4 billion in the previous quarter. Marriot reported that revenue per available room rose 11.1 percent, a key measure of a hotel company's strength. Rising demand drove up room rates increasing to 8.9% worldwide and 8.5% in North America.

Synopsis of the Situation The Bellagio was one of 23 properties of MGM MIRAGE, one of the world's leading hotel and gaming companies. Located in the heart of Las Vegas, The Bellagio was widely recognized as one of the premiere casino resorts in the world. Richly decorated, the resort featured a conservancy filled with unique botanical displays, and eight-acre lake featuring over 1,000 fountains that performed a choreographed ballet of water, music, and lights, top-notch amenities and entertainment options, and 200,000 square feet of convention space. In the casino operations area, the Bellagio operated 2,409 coin-operated gaming devices (slot machines), and 143 game tables. Approximately 1,000 people were employed in casino operations. As

Barriers to get into the hotel industry are huge, which make the hotel industry not look appealing to new entrants.

Although they are in the same single industry, and supplying the same service, the two companies are using very different Business Unit Strategies, which is defined as the strategy a business chooses for each separate organizational entity within the base business (Parnell, 2008). Hampton Inn should not use the same competitive business strategy that Motel 6 uses since it would be a large departure from the image Hampton Inn has worked hard to attain. Hampton Inn has spent much time and money developing its brand, and making sure the company delivers a consistent customer experience, no matter which Hampton Inn a customer chooses to stay at. By automating such of its maintenance and housekeeping functions the company has been able to become

Wynn Resorts, led by the romantic and visionary leader Steve Wynn, is a leader in the gaming and casinos industry. Following its mission statement of, “A commitment to providing an elegant environment, high-quality amenities, a superior level of service and distinctive attractions for our customers,” the company is well known for its luxury and excellence. Some major competitors in the Industry are MGM Mirage and Trump Entertainment Resorts. Fortune Magazine said that ”Wynn, which also led casino resort operators in 2009, ranked second in the hotel, casino and resort category for innovation and number 3 for people management, quality of management and quality of its products and services.” Wynn Resorts management strategy is that of focused differentiation. They create products and services that are unique and valued in which customers will pay a premium and they focus on an upper class segment. The company does well in management or in parenting, by using the experience of the corporate office and the support of the corporate office. Wynn Resorts does an excellent job in branding and is a big part of the company’s core competencies.

When walking into “The Strip” in Las Vegas, an instant feel of excitement rushes up. The flashy neon lights paired with glimpses of amazing acrobatics on gigantic screens easily brings up the energy of tourists, businessmen, and gambling addicts. You may wonder how a once stranded desert can transform into such a paradise of skyscrapers. The answer lies in casinos.

There is a steady growth rate in gaming revenues taking effect in the casino industy around the United States. A number of factors are tied into the increase including new entrants to the casino industry and rival casino expansions. Through aspects of Porter’s Five Forces Model of Industry Competion: Rivalry among existing firms, the threat of new entrants, and the threat of substitues, this case analysis addresses key problems the casio industry is facing and implements stratiges they may use to tackles thoses issues. In addition, SWOT analysis (Strengths, Weaknesses, Opportunites, and Threats) will be used to facilitate the discussion.

With a variety of casinos on the strip, it is hard to stand out and become the leading casino on the Las Vegas strip; however, with the right stand out strategy it is not impossible. Harrah's will have to implement a plan to stick out from the rest of the casinos. For example the Mirage has a volcano, Paris has an Eiffel Tower and Treasure Island has a pirate show just to name a few. Do you see a theme? Without a prominent attraction, Harrah's will concentrate on our other features like the reputation of its sister properties, the fun atmosphere, friendly staff and high quality technology to attract its customers.

Wynn Resorts Limited (Wynn) is high-end developer and operator of resort-style casinos. Wynn offers hotel rooms and suites, gambling, fine-dining, spas, and boutiques. Founded in 2002 by American business magnate Steve Wynn, the company currently has two locations in Las Vegas, Nevada and two locations Macau, China. In 2016, Wynn plans to open Wynn Palace, a 1,700 room hotel and casino in Macau. The company is publicly traded on the NASDAQ Global Select Market under the ticker symbol WYNN.

Hotel Chain as showing to us practice is the most effective way of integration to hospitality business. The main advantage of such integration it is immediately creating customer base and bigger potential market of customers, cost reduction due to general management, logistics, marketing; common quality standards; centralized training and, as a consequence of all

“The geographic location of a casino is a huge consideration” (Lewis pg. 1). Demographics, travel patterns and nearby competition play a significant part in casino design. “ Most people in North America live within a day’s drive of one or more gaming areas” (Lewis pg. 1), so in order to attract people to the casino there must be something other than the gaming floor to draw them in. Many amenity and non-gaming attractions must be considered in order to really stand out. The casino must design strong support facilities, a hotel that can accommodate as many players as it can afford, a parking system for the traveling patrons, non-gambling facilities for families and it must be an inviting space.