We are talking about Wynn Resorts, when people decide to vacation or stay there, it usually means that money isn’t an object so the buyer power irrelevant in this situation. The pool of substitutes is large, but none of them can compete with Wynn and give the same customer service as Wynn Resorts do.
Stage of the life cycle model
Most of casinos would be at the growth stage right now, still in process of developing and expanding. But when it comes to comparing Las Vegas Wynn and Macau Wynn, then Las Vegas is definitely at the maturity stage where Macau is still on growth.
SWOT Analysis
Strength
Steve Wynn is the strength to the company. He has a lot of experience in the industry, and the alliances, contacts, and knowledge that he has cannot be replaced. From the beginning Wynn has been focusing on making a luxurious casino which will be targeting wealthier, high-end customers. The company obviously treats their customers in a very special manner, where they are able to build customer relationships, and customer loyalty, to the company as well as to the brand. When the company is making customer happy it means those customers will keep on spending money at the establishment, which results in Wynn making money. The staff is very experienced, so is the management team, and they all focus on making visitors experience unforgettable (Hill & Jones, 2010).
The location is the strength as well, Wynn is located right on the strip, and it is the only casino in the area with a golf course. Wynn’s marketing strengths are strategic development of the products. Both locations of Wynn Resorts have the same targeting segment, which are high end consumers. And when the cross marketing is being used, customers are able to travel all over the world (Hill & Jones, 2010).
Weaknesses
The major weakness of the company intervenes with the major strength- Steve Wynn. He is a weakness because the company is fully dependant on him, and if he was gone, there is a possibility of the company not surviving. Another major weakness is the focus on high-end customers only. There are a lot of people who can’t afford to experience Wynn Resorts only because their income isn’t high enough. And again their high prices get in the way, since they charge customers a lot more than competitors do, Wynn isn’t able to increase their rates as fast as others get to do it. So when every other casino is allowed to boost up their rates up to 9 percent, Wynn can’t go higher than 4(Hill & Jones, 2010).
Opportunities
The population is aging and they are a lot wealthier nowadays, so they can afford the Wynn experience. Baby boomers are willing to spend their money and have a high spending power. And it doesn’t stop in the United States. Gambling is acceptable in a lot of countries, whereas it wasn’t before, so now Wynn has an opportunity to expand and enter new markets. Some of the competitors end up merging, and with this happening, their target market is automatically changing form high to middle, which gives Wynn an opportunity to make more money from customers who are still looking for a high-end experience. Wynn has already establish a strong customer relationships, so once more countries would allow the license for gaming industries, Wynn would definitely benefit from it(Hill & Jones, 2010).
When it comes to Wynn in Macau, Wynn would have an opportunity of increasing their profit, only if Chinese government wasn’t as strict with currency movement, and having some restrictions on traveling. Once that gets resolved, more people would travel to Macau (Hill & Jones, 2010).
Threats
The competition is always a threat to any business. Once the competition is increasing locally and globally, Wynn will have to try and attract new customers. Another threat is the ability to get license for the casino industry. A lot of countries have rules and regulations for the gaming industries, so it might make it difficult for Wynn to make the wanted expansion into the new market happen (Hill & Jones, 2010).
It has been harder to travel due to the new documentation requirements after the September 11 attack. This results in loss of customers from around the world. If the traveling was made easier, then the profits would be higher for the company (Hill & Jones, 2010).
Wynn Macau can be experiencing political, economic, and social risks. And since the Macau location for a 25 year lease, which is expiring in 2017, the Chinese government has the right to take over the whole company. Wynn Macau would also be facing taxations, which are no on the net income, but on the gross revenue. The taxes need to be paid whether the company has earned the money or not. Wynn has been failing to collect debt from its customers, and they still have to pay taxes, even if the company ends up being in minuses (Hill & Jones, 2010).
Corporate strategy
Wynn’s goal and mission is to make everyone satisfied and happy, to provide the best quality services and products. The company is determined to provide a unique environment and everything on the superior level (Hill & Jones, 2010).
Business strategy
Wynn is serving customers like no other place have done before. Wynn is there to serve high end demanding customers and make them happy. Steve has trained the employees to be honest, hard-working, and trustworthy. Regular employees are being kept under close attention, their names are remembered so are their preferences on rooms, games, and any other activities. Steve is building loyalty with his staff and the customers. There is a special incentives system involved where dealers are allowed to be a supervisor, and depending on their customer service skills, they can earn higher pay (Hill & Jones, 2010).
Structure and control
Wynn has no issues with the way the staff is being treated. They are all very experienced and professional, and most of them have followed Steve from Mirage Resorts. They all get appropriate incentives, depending on how well the performance of customer service was done and how well they interact with big spenders.
Recommendations
I would definitely recommend for the Wynn to make it more affordable, not to the point that anyone and everyone can enjoy the stay, but it shouldn’t only target high end customers. And the company should save money itself, maybe some salary cuts could be made, and possibly reduced work weeks. Another recommendation I would make it to possible be advertized nationally. Since it is a high end establishment, it should be advertised on every corner. The ads will help them build different client relationships, and they will end up making g more profit, and doing more business than competing casinos.
References
Hill, C., & Jones, G. (2010). Bas capstone course. (9 ed., p. C13). Mason, Ohio: Cengage Learning.
