Atlantic City Casino Case Study

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1) Complete the Value chain analysis. Describe your understanding of the competitive position of the Atlantic City Casino. Identify areas of potential cost reduction and/or value added for customers. Answer: The Atlantic City Casino owned and operated by Hotel Corporation of American (HCA) was built in Atlantic City shortly after casino gaming was legalized in that city. According to the article at the time this proposal was given out there were 9 other casinos operating and 2 more under construction. In addition, the Atlantic City Casino was also build away from other rivals, and the consumer’s surveys shows that the casino is viewed as an average casino with no distinguishing characteristics. Because of this, the Casino has relatively small number of walk-ins customers and since management has not been satisfied with the levels of profits the proposal has been made to expand the casino and the hotel, even though there are some legal issues associated with the expansion. According to the article, one can arrive at the conclusion that the value chain for ACC follows both with and without the theme park. This means you can create a value chain for ACC buy looking at activities in each step of the value chain with or without a theme park and see how we can create value to ACC. It’s clearly that the ACC as it stands now; it has no distinguishing characteristics, plus it’s built away from the main casino areas, this increases transportation costs for suppliers and customers and reduces its attraction. According to the article legal constraints also seem to be in the way if ACC wants to increase its capacity in the traditional way (State law prescribes a fixed number of hotel rooms per square feet of casino space). Because of this, I think management should consider adding value to its service before trying to increase the scale of operations. If we look at the

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