Harrah's Entertainment Inc

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Harrah’s Entertainment Inc. MBAA 601 Fall 2014 Harrah’s Entertainment Inc. Situational Analysis Phil Satre, the CEO of Harrah’s has revamped his company’s old philosophy in order to remain competitive with upcoming properties and trends. Harrah’s competitors have developed properties that are changing the way casinos are perceived, with path breaking, one-of-a-kind attractions and landmarks. However, with a fifty-year-old company like Harrah’s, which has properties spread across the United States, it would be challenging and cost-intensive to revamp so as to compete with these innovations. In short, it would require moving the company in a totally different direction. Therefore, in order to stay competitive, Satre has decided to focus on Harrah’s core competency, which is customer loyalty. In this connection, he has worked towards hiring a competent team, which in turn has developed a data-driven marketing strategy. While at the time, Harrah’s seems to be reaping the benefit of these efforts with a 100% growth in stock price and profits; Satre is concerned with determining how much these marketing efforts had actually contributed to increased profitability, and whether these improved results were actually sustainable or simply a one-off occurrence. SWOT Analysis Strengths | Weaknesses | - Investment in Information Technology | - Inability to compete on 'innovation' with the newer casinos (eg. Mirage and MGM) | - Excellent customer service (as recognized by Casino Player Magazine) | - It is an over 50-year-old company, making across-the-board facility upgrades difficult & expensive | - 50% growth in revenue (higher than industry average) | | - 100% growth in stock price and profits | | - Patented integration of IT network across Harrah's properties | | - Data-driven

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