It is concluded that there is a high barrier for entrants due to high cost in order to overcome customer loyalties. Hence, we conclude that this limits the returns from hotel accomodations, dining and enterntainment, which places a ceiling on the prices that the casinos can charge.
The next stage is distribution. Nevado casinos also rely on economies of scale as many of the larger casinos are expanding by buiding on additional rooms to bring in more customers.
Substitues are the second major factor identified in the casino industry competitive environment analysis. The major source for this entry barrier is the cost disadvantage independent of scale regarding the favorable government polices vis -a -vis the Indian Gaming and Recration Act of With the passing of the Indian Gaming and Recreation Act ofNative Americans now have authourization to offer gaming on tribal lands as a way to encourage their self-sufficiency.Opportunities and Threats are enviornmental conditions external to the firm. The process begins with retrieving the money from the slot machines and is referred to in the gaming industry as the drop process. In order to increase competition and revenues, the lagging revenue leaders Atlantic City casinos, riverboat casinos, and Western town casinos need to take advantage of Nevada casinos major weaknesses. It is concluded that there is a high barrier for entrants due to high cost in order to overcome customer loyalties. Substitues are increasing throughtout the market as well. The strengths that they have generated are the availablity of more hotel rooms, fine dinning, excellent entertainment, shopping, mergers and acquisitions, customer loyalty, and product differentiation among its rivals. It is an analysis of the casinos money-handling processes. With the passing of the Indian Gaming and Recreation Act of , Native Americans now have authourization to offer gaming on tribal lands as a way to encourage their self-sufficiency. The exit barriers are also high. Because Atlantic City has so many people within driving distance, they should focus more on picking families up and bringing them in as well. Some gamblers do not want to travel as far as Las Vegas to get the casino experience.
Understand how the industry operates and the key performance metrics for evaluating these operations 3.