Mgm Case
TRM 472- BUSINESS STRATEGY | MGM MIRAGE CASE ANALYSIS | MERVE BUBLİŞ - 2007103241 |
22.03.2012 |
I. INTRODUCTION MGM Mirage is one of the largest gaming industries in the United States and mainly located in Las Vegas, Nevada. The first MGM Grand was established in Las Vegas, Nevada in 1973. After investing in land on the strip the company followed with Treasure Island and the Bellagio. The MGM Mirage was created during the merger in 2000. Since this merger, MGM Mirage has grown and acquired numerous other properties. Currently MGM Mirage acts as a holding company and peruses operation through its wholly owned subsidiaries. The MGM Mirage owns many of the large hotels and casinos on the Las Vegas strip, all which provide restaurants and some the largest entertainment in the world. In 2006 MGM Mirage had $7 Billion in revenues and $600 Million net profits.
II. SITUATION ANALYSIS
EXTERNAL ENVIRONMENT
MGM Mirage’s mission statement that is posted on their website is “Our mission is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every corner of the world in order to enhance shareholder value and to sustain employee, customer and community relationships.” In this way, it is easy to say that MGM Mirage continues to do its core businesses because revenues mostly come from gambling, and the company organizes a forcible growth strategy to compete with powerful rivals and to be the best one among them.
In competition part, the industry is definitely heavy competition because it involves entertainment, hotels, restaurants, gaming and casinos. It is an industry that is growing at a constant rate in different cities, states and even around the world. MGM Mirage has top competitors include Harrah’s Entertainment Inc., Caesars Entertainment Inc., Mandalay Resorts Group and the Las Vegas Sands Corp. The switching costs for this industry are high because it
22.03.2012 |
I. INTRODUCTION MGM Mirage is one of the largest gaming industries in the United States and mainly located in Las Vegas, Nevada. The first MGM Grand was established in Las Vegas, Nevada in 1973. After investing in land on the strip the company followed with Treasure Island and the Bellagio. The MGM Mirage was created during the merger in 2000. Since this merger, MGM Mirage has grown and acquired numerous other properties. Currently MGM Mirage acts as a holding company and peruses operation through its wholly owned subsidiaries. The MGM Mirage owns many of the large hotels and casinos on the Las Vegas strip, all which provide restaurants and some the largest entertainment in the world. In 2006 MGM Mirage had $7 Billion in revenues and $600 Million net profits.
II. SITUATION ANALYSIS
EXTERNAL ENVIRONMENT
MGM Mirage’s mission statement that is posted on their website is “Our mission is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every corner of the world in order to enhance shareholder value and to sustain employee, customer and community relationships.” In this way, it is easy to say that MGM Mirage continues to do its core businesses because revenues mostly come from gambling, and the company organizes a forcible growth strategy to compete with powerful rivals and to be the best one among them.
In competition part, the industry is definitely heavy competition because it involves entertainment, hotels, restaurants, gaming and casinos. It is an industry that is growing at a constant rate in different cities, states and even around the world. MGM Mirage has top competitors include Harrah’s Entertainment Inc., Caesars Entertainment Inc., Mandalay Resorts Group and the Las Vegas Sands Corp. The switching costs for this industry are high because it