Advantages and Considerations for Wynn Macau’s Casino

Executive Summary Wynn was among the first 3 concessionaries to enter Macau when its gaming industry was liberated and quickly became one of the most profitable casinos in Macau relative to its size. Junketeers have contributed greatly to wins success, along with government initiatives. Though gambling is illegal in many parts of the world, the industry is growing and competition is increasing, particularly in the east By 2015, the Asian gaming market is expected to be the biggest in the world. In order to continue to thrive in this growing industry, Wynn will have to consider expanding. Wynn Macau’s competitive advantages include physical capital and human resources. Wynn Macau has had some recent and very public legal troubles but it†¦show more content†¦Macaus gaming industry is void of frequent price wars, proliferation of new products, intense advertising campaigns, and high-cost competitive actions and reactions (Peng, 2014, p. 35), indicative of a low degree of rivalry among competitors. In the future as Macau attracts more, the industrys profitability may be susceptible to decline because of the following characteristics: rising number of firms in the industry, rivals are similar in size, influence, and product offerings, capacity is added in large increments, and high exit costs. (Peng, 2014, p. 37) New casino projects are already popping up in the nearby region and looking to attract high-rollers away from Macau. This particular market segment has been an integral part of Macaus growth and currently accounts for 60-65% of the revenues of its largest casinos (The Economist, 2013). As Chinese leaders attempt to zero in on leadership corruption, high-rollers seek alternatives to the restricted Macau. 1.2 Threat of Potential Entry In general, scarcity is one of the factors driving the SARs success in the gaming industry. Firstly, the Macanese government is exercising tight control over its concessions by carefully selecting winners and holding them accountable to their obligations. Next, we have the issue of land availability for development. Macau is a small peninsula measuring 28 square kilometers. As a result, there is little room for license-holders toShow MoreRelatedCompetitive Analysis : Wynn Resorts Essay856 Words   |  4 Pagesexpand into the already lucrative Macau casino market with one of are most successful casino/resort in the Las Vegas area, the Bellagio. MGM already has a foothold hold in Macau Market, which is provided due to a partnership with Pansy Ho and the successful MGM Macau. The main competition in this area is: Las Vegas Sands Corp. (LVSC), which have 7 properties in the Macau area, Galaxy Entertainment Group (GEG), which have 3 properties and Wynn Res orts Ltd. (WYNN), which have two. Competitive EnvironmentRead MoreCompetitive Analysis : Wynn Resorts1001 Words   |  5 Pagesexpand into the already lucrative Macau casino market with one of are most successful casino/resort in the Las Vegas area, the Bellagio. MGM already has a foothold hold in Macau Market, which is provided due to a partnership with Pansy Ho and the successful MGM Macau. The main competition in this area is: Las Vegas Sands Corp. (LVSC), which have 7 properties in the Macau area, Galaxy Entertainment Group (GEG), which have 3 properties and Wynn Resorts Ltd. (WYNN), which have two. Competitive EnvironmentRead MoreCase Study : Las Vegas Sands Corp1243 Words   |  5 Pagesexpand into the already lucrative Macau casino market with one of the most successful casino/resort in the Las Vegas area, the Bellagio. MGM already has a foothold hold in Macau Market, which is provided due to a partnership with Pansy Ho and the successful MGM Macau. The main competition in this area is: Las Vegas Sands Corp. (LVSC), which have 7 properties in the Macau area, Galaxy Entertainment Group (GEG), which have 3 properties and Wynn Resorts Ltd. (WYNN), which have two. Competitive Environment