Gambling casino Essay

Companies in the gambling industry include those that offer gambling or gaming activities. These may be casinos, casino resorts and hotels, betting and lottery companies. Though legally restricted by many governments all over the world, gambling industries are a major source of revenue to the government. The gambling industry has also helped in eradicating unemployment as it has created new job opportunities and often with higher wages. Major gambling companies in this industry globally are MGM Resorts, William Hill, Caesars Entertainment and Las Vegas Sands among others. The gambling industry is one of the most competitive and risky industries all over the globe. The demand for gambling is influenced by consumer income growth and state spending (â€Å"Hoovers†, n. d). Effective operations and marketing strategies of individual companies in this industry determines the profit rates and levels of the companies. Large gambling operators in this industry can be able to make large investments in gambling facilities and efficient computer operations, and are also exposed to cross-marketing opportunities (â€Å"Hoovers†, n. d). Small gambling operators, on the other hand, are not well exposed like the large gambling operators. They operate in their local areas and centers where the locals may not afford travel to major gambling facilities. SWOT Analysis Strengths The gambling industry has distribution and sales network that enable them to reach everybody. These networks allow the firms to distribute their products and services effectively. The management in the gambling industry is growing as the employees are receiving training. Lower costs in products lead to higher profits to the gambling industry. Technology acts in favor of the gambling industry as they enable them meet the needs of their customers (Jueves, 2013). THE GAMBLING INDUSTRY 3 Unique products of the gambling industries enable them to differentiate themselves for their competitors. High tax and fee to start gambling companies enables the strong to survive in this industry and kills unnecessary competition. Bigger companies tend to have more resources than their minorities making them to pursue new markets and secure themselves against rivals. Weakness The industry is marked by inefficiencies in work as the goods and services are not being utilized properly. Online presence by these companies is important displaying their information and products to customers. Most of the gambling companies are not present online and those that are present do not have proper websites. Supply chains that are weak tend to delay arrival of consumer’s products in gambling spots. Opportunities The gambling companies can take a step and manipulate the online market where most of the customer base is found nowadays. This enables the companies to expand. New products and services can enable the companies to increase their customer base. Gambling companies can tap the untouched markets available in other countries that do not have or have fewer gambling facilities. Threats A strike by workers and the government’s requirements of the industry’s participants to increase the income of their employees tends to act as a threat to the industry. Increased income leads to reduced profits by the firms. Government regulations against the industry is also a big threat to the companies. Rising companies within the industry act as threat as they pose stiff competition. A shift of customers’ taste from one company to another lead to losses. THE GAMBLING INDUSTRY 4 STRENGTHS WEAKNESSES ?Distribution and sales network that exist. ?Potential strong management. ?Monetary assistance is guaranteed. ?Cost advantages. ?Technology. ?Unique products. ?Barriers to entry of market. ?Domestic market. ?Size advantages. ?Work inefficiencies. ?Online presence ?Supply chains that are weak ?Lack of scale as cost per unit of output is quite high. ?Structure of cost that are high compared to competitors. OPPORTUNITIES THREATS ?Online market. ?New products ?New services ?Increasing income levels ?International expansion. ?Venture capital ?Increment in labor costs ? Currency tends to make gambling investment complicated. ?Regulations from the government ?Fast rising competition and lower profitability. ?Tax charges. ?Business risks from external environment. Every customer and guest that goes to gambling spots or facilities always looks to have an exceptional experience. An experience that keeps them coming to this facilities even if they will always leave with little money than they came in with. This therefore calls for good customer service and innovativeness in the way the customers are treated. Change in the gambling industry is difficult. Customers do not want to play new games or gamble on new things that they have no knowledge of. This aspect is the same to everybody as no person is open to change unless it is a major or there is some good reason to change (Baird, 2002). Due to this, when managers in gambling facilities try to develop a new customer service culture among employees, it fails or does not happen quickly. Change in gambling facilities takes THE GAMBLING INDUSTRY 5 a high repetition level and people need to be interested in it. Therefore for customers to adapt to new changes and like them, the gambling facilities owners should make the change to be very interesting to both the employees and consumers. Trained employees in gambling facilities are an important asset. Most gambling facilities choose the best candidates to fill in their empty job positions but fail to train them on how to handle customers and heighten their experience in the gambling facilities. Gambling facilities should invest in training programs for their employees so that customers get to experience good customer service. Hiring and firing of employees’ wastes a lot of time and funds, and many gambling facilities do this (Baird, 2002). The training programs should be involving and fun for the employees being trained for them to grasp every aspect of the program. Good training program translates to good customer service and great customer satisfaction which is good for business. Improving retention strategies for consumers in gambling is one area that needs improvement. If these strategies are improved, the gamblers’ lifetime value and loyalty is increased and guaranteed. Improving the efficiency of customer service is one such strategy. The gamblers can also be motivated by boosting their confidence. Customer experience can also be advanced by introducing mobile applications and social media platforms that allow the gamblers and the gambling joint owners to interact. This boosts the confidence of the customers and encourages them to visit the gambling joints whether physically or through online services. The gambling industry has its own strategic evaluation marked with its own goals and objectives. The industry has recommendations on gambling research methods, ways to educate and prevent harm to gamblers and treatment. Within the gambling industry, research is being THE GAMBLING INDUSTRY 6 done to identify and minimize the risks and harms associated with high stake, high prize gaming machines and support for harm prevention strategies and projects (â€Å"Responsible Gambling†, 2012). The following are the goals for gambling industries via their strategic evaluation: creating public awareness to the general public mass of the potential and associated risks with gambling. This is by informing the mass about the problem of gambling issues and helping them know responsible gambling and making them aware of ways to make healthy choices. This is through education and training. Another goal is to deliver gambling in a manner that promotes responsible gambling and informed choices among gamblers and potential gamblers. This is can be backed up by developing policies that encourage responsible gambling and improving the skills and knowledge about responsible gambling among gamblers. Finally, the industry tries to provide treatment and support to those gamblers impacted by the problem of gambling (â€Å"Ministry of Public Safety†, 2011). Barriers to effective strategic evaluation in the gambling industry include; high taxes that gambling companies are charged by the government, intense competition and the rising labor costs. High taxes levied against the industries tend to make it hard for the companies to make their evaluations effective as most of the money assembled is charged by the government in form of tax. Intense competition amongst the gambling companies also acts as a barrier to evaluation as some companies are facing reduced profits from losing customers. The high cost of labor tends to reduce the profit levels of the companies too. With increased labor requirement for growth and the increase in labor costs, gambling firms are facing a loss of some funds. With the free and global access to the internet, the gambling industry can use this medium as a way to make their strategies effective. Some industries have built platforms on the THE GAMBLING INDUSTRY 7 internet such as websites where they can reach their customers from anywhere in the world. Online gambling games can also be created. Applications that can be installed on mobile phones and computers are being developed to enable gamblers to play their favorite games on their accessories. References Hoovers. (n. d). Gambling Report Summary. Retrieved from http://www. hoovers. com/industry- facts. gambling. 1431. html Martin Baird. (2002). Seven Keys to Improving Casino Guest Service. Retrieved from http://www. urbino. net/articles. cfm? specificArticle=Seven%20Keys%20to%20Improving %20Casino%20Guest%20Service Jueves.(2013). Casinos in the World: SWOT Analysis. Retrieved from http://casinosintheworld. blogspot. com/2013/02/swot-analysis. html THE GAMBLING INDUSTRY 8 Responsible Gambling Strategy Board. (2012). Responsible gambling strategy prioritises its focus for the next three years. Retrieved from http://www. rgsb. org. uk/press- releases/responsible-gambling-strategy-prioritises-its-focus-for-the-next-three-years. html Ministry of Public Safety and Solicitor General. (2011). B. C. ’s Responsible Gambling Strategy and Three Year Plan (2011/12 – 2013/14). Retrieved from https://www. gaming. gov. bc. ca/reports/docs/plan-rg-three-yr-2011-2014. pdf.