Case Report: Casino Industry in 2011 Overview: The casino industry is one of the very important industries in the USA because of the size of their revenue which is about 32.5 billion in 2009. They also provide job opportunities and build attractive places that encourage tourism and bring revenue to states in different ways. The business is facing many changes due to government regulations, new technologies in the gambling world as well as competitions among casino companies and emerging casinos. This report will try to analyze this industry by using the SWOT analysis and porter’s five forces while analyzing its external environment. 1.
The growing economy makes the cost of living more expensive, the overpriced houses are closer together, so you have very little yard to keep up with. The larger city also has faster internet and cable television. There are many disadvantages to living in the big city neighborhood. The economy has inflated property values and taxes, adding the cost of living. The crime rate is very high, putting you and your family at greater risk of being the victim of a crime or violence.
Using a leisure market of your choice, discuss the extent to which it may be considered to be an oligopoly. An oligopoly is a market that is dominated by a few firms who have a high concentration ratio. Oligopolies frequently maintain their positon of dominance in a market because it is too costly for potential firms to enter the market. This is called barrier to entry, and due to this they can earn supernormal profits (see figure) as they can protect themselves from competition in the long run. For the cinema market building something which can seat enough people with the right equipment (e.g.
These investments would make a lot of money as long as the prices of housing were high. However, the housing companies built too many houses. This caused the price of
For example, they normally purchase a big number of merchandises from original manufacturers so they will be able to purchase it in very low prices. Then, people who would like to buy their products have to sign up to be store membership. The companies such as Sam’s Club, BJ’s Wholesales Club, and even Costco will allow just memberships to buy the products in low prices.
In JetBlue case, the current economy situation creates high market entry barriers, which consists extremely high fixed cost and numerous capital requirement. Moreover, the potential and existing competitors affect the industry has a low profit margin, and it is difficult for new entrances to differentiate their products and services from competitors. The bargaining power of supplier is high. The key inputs for the airline industry are the fuel and aircrafts. Boeing and Airbus dominate the aircraft manufacturing industry.
Executive Summary As the biggest chain of company-owned and -operated budget motels in the United States, Motel 6 has a number of advantages that will provide continued success into its future in motel industry. Services is the biggest strength of the motel and is evidenced by the loyal customers. Motel 6’s profits have been fluctuating up and down between 3 to 4 percent of annual revenue per room since 1995, and the company expects that will be gradually increasing by entering the extended-stay market. The study of traditional budget motels were losing customers to extended-stay properties, and the growing acceptance of the extended-stay concept could make it easier for Motel 6 to enter the market. However, Motel 6 has some disadvantages.
Threat of New Entrants is weak. Entry barriers are high because of the economy, significant experience-based cost advantages, other cost advantages held by industry members (e.g., access to inputs, favorable location), brand loyalty (which comes from membership and other services), strong network effects and high capital requirements. 5. Substitute Products or Services is moderate. Warehouse clubs like a magnet for customers and pulling them away from other traditional retail channels such as supermarkets, department stores, drugstores, office supply stores, consumer electronics etc… All three warehoused club rivals - Costco, Sam’s and BJ’s – have similar strategies: Low prices, low operating costs, geographic expansion – Costco; Sam’s Club concept is to sell merchandise at low profit margins, which means at low prices to members; and BJ’s offers brand-name merchandise at prices that were significantly lower than the prices found at retail, supermarkets, dept.
Zotos Dimitrios 18/5/04 Case 7 The market segment Lilybank Lodge is targeting at mostly consists of upper classes, very wealthy people. Most of the potential customers are well known people, who have problems spending some time off without different kind of people (press, fans) intervening with their lives. Most of them are also more likely to be foreigners, than New Zealanders, because there can’t be so many people belonging to that target group in such a scarcely populated country and those who are, most probably have some vast property of their own. Because of the financial and social status of the target group, the company should expect some major demands from them regarding quality and reliability, as well as a wide range of services, things for which they are capable and willing to pay. One thing that is most certain the clientele will expect is the highest possible privacy, without that meaning the customers should be “locked away”, something absolutely achieved thanks to the vastness of the lodge area and the wide range of outdoor activities.
This is an important thing to see in that the costs that are involved for travel and gasoline can vary in accordance with each UK caterer. After all, traveling from London all the way to the midlands can be something expensive for a caterer to be able to handle. Another thing to see is that in some areas a facility that can handle a wedding reception will work with its own catering company. It will help to take a look at what that facility has when it comes to getting foods prepared for a wedding. If the services that are being offered by that company are not good enough then it would be best to hold the wedding reception in some other area so that another caterer can be used.