External Analysis of the Casino Industry
One of the top industries in the US is the casino industry, which is in the process of expanding into new states and increasing its market availability. There are many factors that play into the growth of the casino industry such as different rules and regulations from both the federal and state governments to go along with the business factors of technology, social acceptance and target demographic. The companies within the industry also have to look at Porters five forces to determine whether or not that the company they are in is a strong or weak one. An industry consists of a group of companies that have similar products/services, and have a similar way of delivering them to the consumer. There are many companies that make up the casino industry. In 2012 the total revenue for the casino industry is $98.4 billion. (Casinos & Gaming Industry Profile) The top five companies that make up the revenue are Marriott International, Las Vegas Sands, Caesars Entertainment Corporation, MGM Resorts International, and Starwood Hotels and Resorts. Marriott International brought in $12,317 million in revenue, Las Vegas Sands brought in $9,410.7 million dollars, Caesars Entertainment Corporations brought in $8,834.5 million dollar in revenue, MGM Resorts International brought in $7,849.3 million dollars in revenue, and Starwood Hotel and Resorts brought in $5,624.0 million in revenue. (CNNMoney) The casino industry would be considered an oligopoly due to the fact that there are only a few strong companies within the industry. The company would be considered concentrated because the top five companies are containing fifty percent of the market value. The casino industry would is vertically integrated. The companies within the industry own the casinos, which are close to the customer making the industry forward vertically integrated. There are seven factors that can affect an industry. The casino industry, like every other industry, must take these factors into