Case Study

BUSINESS ENVIRONMENT AND COMPETITION IN THE INDUSTRY

1. Gambling restricted to Gaming parlors in early US era. Gradually legalization of gambling led to full houses casino. The casino resorts soon became an industry standards. Riverboats and land-based casinos in places other than Atlantic City

2. Las Vegas: the largest U.S gaming market-mecca for national conventions.

3. By 1999, riverboat-type casinos were operating in six states and Native American owned facilities were in business in 12 states

4. By 2000, Harrah’s Entertainment Inc was well known in gaming industry and operated casinos in major markets

5. Early strategy was people oriented. Now it was in a dilemma whether to focus on design n build or on customer loyalty.

Competitors:

Numerous casinos and casino hotels of varying quality and size.

Example:

• Park Place Entertainment Corporation- seeked to maintain geographic diversity to reduce regional risk

• Mirage Resorts mainly operated in casinos. However, the company also had operations and theme parks in Mississippi, New Jersey and Argentina whose target was upper-middle and premium segments of the market.

• Circus Enterprises: piece by piece, spectacle by spectacle, gaming resort complex in the world with a mission to control close to 20,000 hotel rooms along a single continuous mile in the world’s leading destination.

• Trump Hotels and Casino Resorts: leaders in gambling industry with an aim to increase profitability by targeting better margin business coupled with cost control and efficient operations keeping the value intact.

On the East Coast: the largest Native American Casino grossed about $1billion a year. Harrah faced local competition in rest of the remaining markets

HOW DID HARRAH’S ADOPT IDIC FRAMEWORK?

Identify :

1) Harrah’s first major investment was towards identifying a database. They adopted the Winner’s Information Network, a national database

2) Collected additional information from the...