Macau Gaming Industry

402 Words2 Pages
Barriers to Entry- The hotel and gaming industry is dominated by six firms that hold over 90% of the market share. Each of these companies has more than 1 billion of revenue annually, which gives an insight on how large these firms are. This industry requires an extremely large amount of capital to build these hotels. This also includes the hiring of all employees and private security companies. In addition, the hotel must have enough capital and reserve to payout winners. Substitutes- There is many substitutes for resorts and casinos because they are usually located in the same region. Every niche market is targeted and competitors are looking for ways to compete against each other. Wynn hotel has implemented a golf course in the back of their hotel to distinguish themselves from others. However, it’s going to take much more than that to truly create separation from one and another. Buyers- People have power of these firms because there are many hotels that offer the same experience although they are each different. Many may favor a hotel, but will not be hesitant to switch if things do not go their way, such as a bad experience. Big players and VIPs pour in millions and are expected to be treated with top priority or they can easily switch loyalty. Since there are so many opportunities and no hotel stands out from the rest, the power is still in the hands of the buyers. Suppliers- Building a resort or let alone a casino is very capital intensive. The contractors must have enough money to invest in the project and must have the capabilities to attract companies to hire them. Since this building a casino requires a small margin of error, not many people are skilled enough to handle such a large project. As for suppliers for the casino, the firms also have power over them because the machines have long lifespan and are only used in casinos. Rivalries – Among
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