VIEWPOINT

Mr. PHILIP SATREChairman and Chief Executive Officer

(Harrah’s Entertainment, Inc.)

PROBLEM STATEMENTHarrah needs to decide how can they have

and maintain the competitive advantage in attracting new customers, retaining the existing one and also getting back the lost customers and to keep the competition.

STATEMENT OF OBJECTIVES

To Know how much these marketing efforts and what factors had contributed to Harrah's overall performance

AREAS OF CONSIDERATIONSTRENGTHSCompany’s approach to strategic management and its

focus on its objectives.

- 100% growth in profits over previous year.- In every industry there are basically two kinds of

companies: those companies that try to be all things to all people, and those who focus on a select audience and then build their products, services, knowledge and identity with them in mind. It is much more difficult to have the discipline of focus; however, we believe it is also the path that leads to the greatest opportunity.

B. Harrah’s has a strong focus on marketing.-They targeted a segment of the overall casino

market:B.1. Product -They successfully created a tangible product.

Resort destination vacation (spa, salon and golf)Multimillion dollar slot tournamentsComfortable stay, good food, and great service

B.2. Place- Harrah’s has 18 locations. These many locations allow Harrah’s to attract many different people into the casinos. They are not dependent on any one region for its customers

B.3. Price- Harrah’s is competitive with slightly below, competitive pricing.

B.4. Promotion Harrah’s is a master of promotion and has a complete marketing program.-Using Total Gold program, Harrah’s has 15 million customer’s name in its database.

- -Harrah’s has mastered target Marketing thus faithfully observes play patterns and conducts formal research.

- - Harrah’s focuses on four main strategies to grow its business:

More Distribution- Acquisition and building propertiesQuality Products- Strive for consistency in high quality food, service, gaming and accommodationsPatented technology - Received patents for its total gold systemGreat Service- Competition in a service industry

C. Customer loyalty initiatives – Total Gold was a revolutionary technological

Innovation. The card was a core competencyWEAKNESSESA. In 1999, due to increased competition in the

riverboat casino market, profit margins have decreased. Higher gaming taxes in some areas have also caused declines in margins.

B. Harrah is far behind the Competitors since most of them invested heavily in facilities

C. It is 50 year old company making across-the-board facility upgrades difficult and expensive

OPPORTUNITIES

A. In 1996, the casino gaming industry employed more people that the other industries.

B. The economic data indicate that gaming stands as its own industry and will continue to grow as the economy and people’s incomes grow.

C. Continue investment in business intelligence to distance the company from competitors

Casino gaming has created thousands of jobs. The tax revenues that casinos pay help lower taxes and pay for many basic civic duties.

Gaming has grown because consumers’ discretionary recreational income has grown.

Recreation expenditures are growing faster than any other major component of the economy because when incomes increase, spending shifts from necessities to recreation.

THREATSA. Gaming industry is active in bringing attention

to problem gambling and against underage gambling.

B. Competitor’s investment in Newer/ superior facilities

Six Major Gaming Industry Companies

C. Technology: Player Cards, Slot Technology/Linked Jackpots and Internet

Internet is the source for intense gaming competition.

Both state and federal governments have actively worked to regulate and even ban Internet gaming.The potential fraud over the InternetChildren’s access to gambling sitesAn increase in gambling addiction

Many states have passed laws regulating its issue

ALTERNATIVE COURSE OF ACTION

A. Continue to create and implement unique and different Programs and Marketing Campaigns that would strengthen customer relationship and increase Customer Visits

B. Maintain the existing marketing programs that worked on the previous year particularly the Database Marketing and Total Gold Program

QUALITATIVE ANALYSIS

QUANTITATIVE ANALYSIS DECISION MATRIX

CONCLUSIONBased on Qualitative and Quantitative analysis, it can be

concluded that:

1. ACA 1 is better than ACA 2. -Therefore, Harrah’s should use CRM (customer relationship

management) to understand customer needs better and try to look for the least expensive way which adds value to customers the most. Based on analysis of data, modest offer generated more gambling. More focus on selected customers as 26% of players generated 82% of revenue.

2. In addition to the above step, Harrah’s may take up the following step of investing in the facility depending upon the analysis as how much importance does a theme based or any other type of ambience help in increasing the revenue for the company.

PLAN OF ACTION

REFERENCES David, F. (2012). Strategic Management,

Concept and Cases 13th Edition. New Jersey. Prentice Hall.

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