The casino business in Las Vegas and Macau
Rivalry would only be existent at the Las Vegas Wynn, since it is a more established location. It is surrounded with competitors who are merging together. All of the companies are competing with each other for a better market position. It seems like the business is just starting to develop in the Macau, so the rivalry won’t be very significant. The Las Vegas Wynn will not be affected or threatened by the new entry. The company is already established and it will not busy easy for a new comers to beat their profit.
Since the gaming industry is still growing in Asia, the Macau Wynn might be threatened by the new entry. There will be a lot of local and international entries. Threat of suppliers shouldn’t affect either location. There are plenty of suppliers to purchase products from. Even though there are not a lot of game manufacturers, Las Vegas Wynn shouldn’t have a problem getting it from the manufacturer. Macau on the other hand is still a growing industry, so the suppliers might be charging extra.
We are talking about Wynn Resorts, when people decide to vacation or stay there, it usually means that money isn’t an object so the buyer
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Steve Wynn is the strength to the company. He has a lot of experience in the industry, and the alliances, contacts, and knowledge that he has cannot be replaced. From the beginning Wynn has been focusing on making a luxurious casino which will be targeting wealthier, high-end customers. The company obviously treats their customers in a very special manner, where they are able to build customer relationships, and customer loyalty, to the company as well as to the brand. When the company is making customer happy it means those customers will keep on spending money at the establishment, which results in Wynn making money.
The staff is very experienced, so is the management team, and they all focus on making visitors experience unforgettable (Hill & Jones, 2010). The location is the strength as well, Wynn is located right on the strip, and it is the only casino in the area with a golf course. Wynn’s marketing strengths are strategic development of the products. Both locations of Wynn Resorts have the same targeting segment, which are high end consumers. And when the cross marketing is being used, customers are able to travel all over the world (Hill & Jones, 2010). Weaknesses
The major weakness of the company intervenes with the major strength- Steve Wynn. He is a weakness because the company is fully dependant on him, and if he was gone, there is a possibility of the company not surviving. Another major weakness is the focus on high-end customers only. There are a lot of people who can’t afford to experience Wynn Resorts only because their income isn’t high enough. And again their high prices get in the way, since they charge customers a lot more than competitors do, Wynn isn’t able to increase their rates as fast as others get to do it.
So when every other casino is allowed to boost up their rates up to 9 percent, Wynn can’t go higher than 4(Hill & Jones, 2010). Opportunities The population is aging and they are a lot wealthier nowadays, so they can afford the Wynn experience. Baby boomers are willing to spend their money and have a high spending power. And it doesn’t stop in the United States. Gambling is acceptable in a lot of countries, whereas it wasn’t before, so now Wynn has an opportunity to expand and enter new markets.
Some of the competitors end up merging, and with this happening, their target market is automatically changing form high to middle, which gives Wynn an opportunity to make more money from customers who are still looking for a high-end experience. Wynn has already establish a strong customer relationships, so once more countries would allow the license for gaming industries, Wynn would definitely benefit from it(Hill & Jones, 2010). When it comes to Wynn in Macau, Wynn would have an opportunity of increasing their profit, only if Chinese government wasn’t as strict with currency movement, and having some restrictions on traveling.
Once that gets resolved, more people would travel to Macau (Hill & Jones, 2010). Threats The competition is always a threat to any business. Once the competition is increasing locally and globally, Wynn will have to try and attract new customers. Another threat is the ability to get license for the casino industry. A lot of countries have rules and regulations for the gaming industries, so it might make it difficult for Wynn to make the wanted expansion into the new market happen (Hill & Jones, 2010).
It has been harder to travel due to the new documentation requirements after the September 11 attack. This results in loss of customers from around the world. If the traveling was made easier, then the profits would be higher for the company (Hill & Jones, 2010). Wynn Macau can be experiencing political, economic, and social risks. And since the Macau location for a 25 year lease, which is expiring in 2017, the Chinese government has the right to take over the whole company. Wynn Macau would also be facing taxations, which are no on the net income, but on the gross revenue.
The taxes need to be paid whether the company has earned the money or not. Wynn has been failing to collect debt from its customers, and they still have to pay taxes, even if the company ends up being in minuses (Hill & Jones, 2010). Corporate strategy Wynn’s goal and mission is to make everyone satisfied and happy, to provide the best quality services and products. The company is determined to provide a unique environment and everything on the superior level (Hill & Jones, 2010). Business strategy Wynn is serving customers like no other place have done before.
Wynn is there to serve high end demanding customers and make them happy. Steve has trained the employees to be honest, hard-working, and trustworthy. Regular employees are being kept under close attention, their names are remembered so are their preferences on rooms, games, and any other activities. Steve is building loyalty with his staff and the customers. There is a special incentives system involved where dealers are allowed to be a supervisor, and depending on their customer service skills, they can earn higher pay (Hill & Jones, 2010).
Structure and control Wynn has no issues with the way the staff is being treated. They are all very experienced and professional, and most of them have followed Steve from Mirage Resorts. They all get appropriate incentives, depending on how well the performance of customer service was done and how well they interact with big spenders. Recommendations I would definitely recommend for the Wynn to make it more affordable, not to the point that anyone and everyone can enjoy the stay, but it shouldn’t only target high end customers.
And the company should save money itself, maybe some salary cuts could be made, and possibly reduced work weeks. Another recommendation I would make it to possible be advertized nationally. Since it is a high end establishment, it should be advertised on every corner. The ads will help them build different client relationships, and they will end up making g more profit, and doing more business than competing casinos.
Hill, C. , & Jones, G. (2010). Bas capstone course. (9 ed. , p. C13). Mason, Ohio: Cengage Learning.