Casino Industry Case

Zack Riedel

Strategic Management

“The Casino Industry” Case

February 9, 2015

MGM Resort

Background

MGM Resorts is the Second largest operator of casinos, along with interests in real estate, next to Caesars Entertainment. Most of the MGM’s casinos are located in Las Vegas or other parts of Nevada. MGM’s casino tend to cater toward the high end of the market, they target high value customers and run up-scale resorts.

Resorts & Casino Industry

In order to see the opportunities and challenges facing the Resort and Casino Industry, particularly MGM Resorts, an analysis of the industry as a whole is needed. In order to do this, a Driving Force Analysis will be executed. First, the forces that are most likely to exert the greatest influence over the next couple of years are future economic stability, Casino type businesses growth into different states and countries, which leads to growing competition in other parts of the world not just Las Vegas, Nevada and Atlantic City, New Jersey.

These three factors are factors that cause the demand for a product, competition, and profitability to fluctuate throughout the industry. The United States economy is a major driving force for the Casino industry. If the economy is slowing down, people will tend to not visit casinos as much due to them not having an excess amount of money than normal to spend at Casinos and Resorts. Economic slowdown will force potential visitors to put off their travel plans to the major Casino and Resorts, and find something closer to where they live. Since 1931, when Nevada legalized gaming, casino type businesses have spread throughout the United States and Internationally. As more and more states started to legalize gaming, the industry as a whole has gotten more competitive. “The greatest growth has come in the form of waterborne casinos that have begun to operate in six states that have allowed casinos to develop at waterfronts such as rivers and lakes. By 2012, over 80 such casinos were...