MBA RTU Candidates: Group 4 Presentation

3. Mr. PHILIP SATRE
Chairman and Chief Executive Officer
(Harrah’s Entertainment, Inc.)

4. Harrah 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.

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

6. STRENGTHS
Company’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.

7. 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 tournaments
Comfortable 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

8. 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 properties
Quality Products- Strive for consistency in high quality food,
service, gaming and accommodations
Patented technology - Received patents for its total gold system
Great Service- Competition in a service industry

9. C. Customer loyalty initiatives
– Total Gold was a revolutionary technological
Innovation. The card was a core competency
WEAKNESSES
A. 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

10. 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

11.  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.

12. THREATS
A. 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

13. 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 Internet
Children’s access to gambling sites
An increase in gambling addiction
 Many states have passed laws regulating its issue

14. 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

17. Based 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.

19.  David, F. (2012). Strategic Management,
Concept and Cases 13th Edition. New Jersey.
Prentice Hall.
 www.reviewjournal.com/.../harrahs-
entertainment
 www.referenceforbusiness.com ›
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