Business ethics and/or Core Value Statements Essay
In the U. S. , Gambling becomes one main attraction in tourism and hospitality industry especially for those, the Have. Among hundreds to thousands of casinos that located not only in Las Vegas but also in other states and even in the world, Harrah’s entertainment is considered as the largest brand of casino entertainment. This could happen since the company conducting the so-called multi brand strategy to keep customers contributes to the holding company of Harrah’s entertainment.
The vast brand of Harrah’s entertainment (through operating the subsidiaries) including the Harrah’s, Caesars, Horseshoe, and Imperial Palace, to name a few, Harrah’s is considered as the Amazon. com in gambling industry since they both share something in common: born in internet era and the adoption of high technology to increase revenue from customers. In short, the two companies share similar strategy to increase their revenue by creating large customers data base. Due to the fierce competition in gambling industry, the company needs to have long term objectives and strategies as following:
a. Adopt information technology as media to improve the customers’ experience and increase corporate performance. b. Expanding the number of subsidiaries in several states in order to raise the number of served customers
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Maintain the three largest brand Harrah’s, Caesars and Horseshoe brand names g. Develop new corporate brands h. Become leaders in gaming industry i. Develop differentiation strategies to differentiate from the competitors, especially MGM j. Develop new gaming products 2. External Analysis Porter’s five forces model describes the threat of new entrants, power of buyers, power of suppliers, rivalry among existing competitors, and the threat of substitute products for market place organizer or transaction service provider industry satisfy following diagram:
Figure 1 Diagram of Porter’s Five Forces Source: Porter, 1998 2. 1. Rivalry In any industries including the gambling industry, competitive advantage becomes key in determining the success of a casino. This is because by having competitive advantages over their rivals; Harrah’s will get benefits of increased customers. One of competitive advantage is Harrah’s has many casinos in the U. S. (26 casinos in 13 states) with similar treatment in any Harrah’s entertainment casino facilities.
2. 2. Barriers to Entry One of common hurdles to win a market share in any industry is brand loyalty or in terms of multinational business, the main barrier could be the nationalism. For Harrah’s entertainment, the barrier’s to entry is the restriction of establishing gambling facilities in several states. 2. 3. Products Substitution Impact of product substitution is possibly the most overlooked factor although its impact is damaging.
For gambling industry, the product substitution is the online gambling that can let gambler to gamble in their convenience at home. 2. 4. Buyer Power In gambling industry, there are some aspects that influence buyer power; they consists of size of buyer (larger buyers will have more number of buyers). Buyer has powers as there are many alternatives besides Harrah’s entertainment. 2. 5. Supplier Power In addition to buyer power, in gambling industry, power of suppliers also have significant role because a supplier of gaming machines (Manjoo, 2003).