Strategic Overview of Wynn Resorts and the Casino Hotel...
Transcript of Strategic Overview of Wynn Resorts and the Casino Hotel...
TIBERIUSConsulting
Strategic Overview of Wynn Resorts and the Casino Hotel Industry
Tiberius Consulting Team:Thomas Brennan, Kepler Edwards, Carol Chase Peterson, Ryan Bach, and Valentina Cerda
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Firm and Industry Background Industry Overview
– The Casino Hotel Industry consists of short-term lodging in hotel facilities with a casino on the premises
Firms in the industry generally offer a range of services and amenities, such as food and beverage services,
entertainment, valet parking, swimming pools and conference and convention facilities
– Industry sales in 2014: $53.1 Billion
– Only 20 US states allow commercial casinos of some form
– Key Players: Las Vegas Sands, Wynn, MGM Resorts, Caesars
Sources:
• Arsenault, Mark. "Wynn Closes on Everett MBTA Land." Boston Globe.
• Brennan, Andy. "Casino Hotels in the US." IBISWorld.
• Brustein, Joshua. "New Jersey's Casinos Are Sinking Faster Than Online Gambling Can Rise.” Bloomberg Business.
• Palmeri, Christopher. "Local Casinos Are a Losing Bet." Bloomberg Business, April 3, 2014.
Analysis of Profitability(Return on Assets 2010-2014)
4%
Economic
Average
-2%
Industry
Influence
2%
Industry
ProfitabilityStrategy
Influence
WYNN
Profitability
7%5%
Client Firm: Wynn Resorts– Locations in Las Vegas & Macao – Location in progress in Everett
Leader Firm: Las Vegas Sands – Locations in Las Vegas, Macao,
Singapore, Pennsylvania– Strongest development in Macao,
most properties on Cotai Strip
Industry Level Issues: – Decreasing domestic sales– Increasing casino openings– Intense competition in Asian
markets for limited licenses and tourist flow
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Overview of Strategic Recommendations
Increase profits
Revenues
Prices . Unit Volumes .
Costs
Raise Prices
Mix Shift to
Faster, Lower
Odds Casino
Games
Expand
Localized Casino
Strategy
Drive Volume in
High NW with
Credit Card
Outsource Non-
Core Activities
Divert Traffic to
Non-Optimal
Wynn Locations
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LVS
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LVS
Survey Results: Undifferentiated and Underperforming■ General Findings:
― The customers are overall indicating a very low perception of differentiation between Wynn and market leader Las Vegas Sands
― However… customers with over $75,000 indicated a slight preference for Las Vegas Sands in 9 out of 10 criteria!
― The customers are telling us that ‘Room Quality’ is their #1 ranked criterion with an average importance ranking of ~7.62 (dark blue)
― Gambling ranked as the most important “feature” available to those not staying in the resort, while Shopping ranked as the least important
■ Implications:― While there are no glaring weaknesses,
Wynn does NOT currently have the differentiation and quality expected of a ultra-high-end positioning and tightly integrated firm
― Wynn’s slight performance gap to LVS increases on average with higher income individuals
n = 197
n = 36
*Respondents that
enjoy casino resorts
*Respondents that
enjoy casino resorts
and earn over
$75,000/year
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Porter’s Five Forces: Concerns Over Rivalry
IndustryRivalry
Suppliers Buyers
Potential Entry
SubstitutesPower of Suppliers
Alcohol, food, machines
• Large amount of suppliers (because they are generic inputs, the industry has a large amount of options)
• Low differentiation of products • Ability for industry to integrate backwards
(easier for the companies inside the industry to get into the suppliers industry than the supplier firms to integrate forward)
Extent of Rivalry
Las Vegas Sands, Wynn, MGM, Caesars
CAGR = 2.74% [American Gaming Association]• Low Market Concentration (C4 = 32%) [IBISWorld]• Large amount of casinos in locales where legalized• High exit barriers (high leverage, remodel cheaper than exit) • Low differentiation in physical gambling• Depending on region - Industry revenues either actively
shrinking or growing at rate below GDP, increasing crowding
Power of Buyers
End consumers• Fragmented ( the consumers are individuals)
But…• High-rollers have a large influence and generate a lot of
revenue for individual casinos• Companies comp many expenses for the high-rollers• Very low switching costs; the resorts are right next to each
other and have very similar offerings • Price sensitive
Threat of Entry Potential Entrants: Luxury hotel companies with existing
infrastructure
• Long and expensive application process for a license
• Strict Policies and regulations made by the government
• New licenses tend to go to existing casino hotel companies
• High startup investment ($550-$600 million)
• Economies of scale
• Rev. Per Square Foot
• Small Casinos: $898
• Large Casinos: $1942
[IBISWorld]
Threat of Substitutes Potential substitutes: Lotteries, sports and race
gambling, online gambling, hotels without casinos
• Online gambling becoming an increasing trend
• Since 2003 revenue has grown from $7.4
billion to $41.4 billion [Bloomberg]
• High taxes on winning can lead vacationers to
activities other than gambling [Bloomberg]
Sources:
• Brennan, Andy. "Casino Hotels in the US." IBISWorld.
• Brustein, Joshua. "New Jersey's Casinos Are Sinking Faster Than Online Gambling Can Rise.” Bloomberg Business.
• Palmeri, Christopher. "Local Casinos Are a Losing Bet." Bloomberg Business, April 3, 2014.
• "Gaming Revenue: 10-Year Trend." American Gaming Association. January 15, 2014. Accessed April 21, 2015.
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Localized Casino Strategy: Lock-In Low Competition We recommend dramatically expanding the
“localized casino” strategy of seeking single licenses
near major population centers that have historically
not allowed casino resorts
Survey results that roughly half the population at
44% of respondents would be unwilling to travel
longer than three hours to visit a casino resort
– Seven of the ten most populous U.S. cities have in-flight
times alone of longer than three hours from Las Vegas
– The East Coast is particularly underserved, with tighter
gambling restrictions and the primary option of Atlantic
City in such decline that it fails to compare in quality
(revenues declined 37% from 2006-2011 and 4 of 12
casinos closed in 2014) [BostonGlobe]
By locating in and near major cities, Wynn and
comparable competitors should easily take market
share from nearby destination casinos by offering
higher convenience and quality
Survey results indicate that there is overwhelming
support for increasing casino licenses, with 83% of
respondents supporting allowing a casino resort to
be built in a major city nearby
However, only 59% support the idea of multiple
casino resorts being built – this could shift the
industry to a local monopoly/duopoly structure
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Less than 1hour
1 - 2 hours 2 - 3 hours 3 - 4 hours 4 - 5 hours More than 5hours
Time Willing to Travel for Casino Resort
“It’s a highly competitive market! Seventy
hotels on the strip. No monopoly, no
duopoly,” he said in January. “Caesars
Palace had the [state] record [for gaming
revenue] at $400 million, and nobody had
ever been near 400 except Caesars. We
opened the Mirage, and in 1990, the first
full year of operation, we broke the $500
million mark.”
- Steve Wynn (CEO) [WBUR]
Sources:
•Arsenault, Mark. "Conn. Casinos Double down on Expanding Attractions." BostonGlobe.com. December 14, 2014. Accessed April 21,
•Marks, Gene. "3 Things That Might Have Kept Steve Wynn in Philadelphia." Philadelphia Magazine. November 14, 2013. Accessed April 21, 2015.
•Barrow, Clyde. "Mohegan Sun Casino & Foxwoods Resort Casino: Potential Impact of Gaming Expansion in Massachusetts & New York." March 1, 2015. Accessed April 21, 2015.
•"Decision Time For Casino Panel: Mohegan Sun Or Wynn?" WBUR 20. N.p., n.d. Web. 21 Apr. 2015.
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Localized Casino Strategy: Comparative Margins and CSR By moving from the high industry rivalry
environments of Las Vegas and Macau to the legally
enforced monopoly/duopoly environment of
localized casinos, margins should significantly
expand
As a proxy for this shift, comparing LVS’s Las
Vegas properties against its remote offering in
Bethlehem, Pennsylvania reveal a <300 bps
expansion in Adjusted EBITDA margins
– Expanding closer to major cities should expand margins
further
– Sands Bethlehem is a low-cost offering, whereas Wynn
Everett offers a higher-end, more regionally differentiated
experience that should increase margins
Assuming this strategy is as successful as expected,
industry competition over bids should further
increase domestically
As a result, this is most accurately viewed as an
industry shift towards less saturated regional
markets with aggressive non-market strategies key
in both obtaining the bid and preventing competitive
entry
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Sands Bethlehem LVS Las Vegas Properties
Adjusted EBITDA Margins (2014)
Recent Highlights of Wynn’s
“Corporate Social Responsibility” Initiatives –
Generosity or Bribery?
• In 2011, Wynn donated $25 million to the Universityof
Macau Development Foundation with commitments to
donate $10 million each year until 2022 ($135 million
total) [Wynn CSR Report]
• In excess of $10 million in donations during the last U.S.
presidential election [Las Vegas Review-Journal]
• $25 million to $45 million in infrastructure
improvements related to Wynn Everett over 10 years
Sources:
•Ghezzi, Patrick M. Gambling Behavior Theory, Research, and Application. Reno, NV: Context Press, 2006.
•“Wynn 2013 Corporate Social Responsibility Report” Wynn Investor Relations, 2013
•Stutz, Howard. "Steve Wynn, Once Vocally Anti-Obama, Goes Mum." Las Vegas Review-Journal. N.p., 02
Sept. 2012. Web. 21 Apr. 2015.
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Outsource Non-Core Segments: Value Chain Overview
= Firm owns/operates these steps in the value chain
Design
Construction
Operations
Marketing
License
Acquisition
Game
Development
Operations
Debt
Collection
Facility
Development
Operations
Marketing
Facility
Development
Selection
Operations
Marketing
Facility
Development
Selection
Operations
Marketing
Gaming Restaurants Entertainment Shopping
Customer
Acquisition
Hotel
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
“MarketLine Industry Profile: Casinos and Gaming in the United States.”, Marketline Report., November 2014., DataMonitor.
Brennan, Andy, “Casinos & Gaming.”, IBISWorld Industry Report 71112, November 2014., IBISWorld
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Outsource Non-Core Segments: Perception, Volume, Profit Wynn is the only most vertically integrated
company in the industry, owning and
operating all restaurants, entertainment shows,
spa services, and a resort design firm
– Steve Wynn states this is in order to promote
brand control and because, in the case of
entertainment, “if you hire stars, they get all the
money”
– However... this strategy has both forced Wynn to
focus extensively on business segments outside
of core competencies and failed to yield
perceived quality increases [Survey Data]
Wynn should consider outsourcing these
non-core segments, particularly in newly
constructed resorts, in order to drive
improvements in focus, traffic, and margins
– Slightly worse F&B margins against LVS (44%
vs. 50% for 2014)
– Slightly worse casino margins against LVS (38%
vs. 44% for 2014)
– Better entertainment margins, but LVS’s 37%
higher revenues suggests higher interest, traffic,
and gambling cross-selling
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Casino
WYNN LVS
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Outsource Non-Core Segments: Attractive Side-Benefits Even if segment margin decreased, opting for the higher revenue external option may help raise
profits through driving casino traffic
– AGA survey of U.S. casino resort visitors in 2013 revealed that 74% of respondents engage in some form of
gambling when they go to a casino resort, even if whether the main purpose was just to visit a restaurant or show
In addition, by outsourcing non-core business segments Wynn will be able mitigate future risk by
guaranteeing lease income from restaurant and entertainment operators without taking on the
responsibility of owning and operating in-house
Due to the industry’s sensitivity to economic downturns and its need for high capital expenditures
and high leverage to fund them, the stability of lease income could significantly reduce BK risk without
sacrificing much income
– Caesars Entertainment’s recent bankruptcy declaration is largely due to increased leverage coinciding with the
U.S. economic downturn (Caesars did not have Macau holdings to diversify against this shock) [ValueLine]
– Casino resorts often suffer worse than hotels in recessions due to sensitivity to decreased disposable income
– Wynn rolling five-year beta of 1.36 to some extent reflects this higher sensitivity to macroeconomic factors due to
highly correlated and unguaranteed revenue [Google Finance]
Finally, consumers in Macau are primarily interested in gaming and shopping; thus limiting the upside
possible from costs incurred in-house for non-core business segments (e.g. restaurants & shows)
– Wynn Las Vegas non-gaming revenue is 40% of total revenue [10-k]
– Wynn Macau non-gaming revenue is 10% of total revenue [10-k]
– With major near-term developments focused in Macau, this small revenue share does not warrant the high
requisite level of attention and resourcesSources:
Silva, Dominic. "Industry Analysis: Hotel/Gaming." Industry Analysis: Hotel/Gaming. Accessed April 21, 2015.
“State of the States: The AGA Survey of Casino Entertainment ” American Gaming Association. 2013
Ghezzi, Patrick M. Gambling Behavior Theory, Research, and Application. Reno, NV: Context Press, 2006.
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Overhaul Rewards System: History and Background
Tracking customer data through a rewards card and utilizing it for marketing purposes in
the casino was a strategy first used by Harrah’s Entertainment (now Caesars Entertainment
Corp.) in the late 1990s
– By targeting “low rollers”, tracking their behavior through the rewards card, and creating
promotions and freebies to keep customers in their casinos, Harrah’s made a $100 million
investment in IT to support this tactic [HBS]
– “The data collected through the program allows us to execute direct marketing strategies that
increase the efficiency and effectiveness of our marketing dollars”- Gary Loveman, Former COO
of Caesars Entertainment [HBS]
• Revenue grew by 50% and stock price doubled in the following years after the investment [HBS]
This strategy was easily copied by competitors. Nearly all other casinos hopped on this
gravy train to keep customers spending money in casinos in an effort to chasing “comps”
Caesars: Total Rewards Wynn: Red Card Las Vegas Sands: Club GrazieMGM: M Life
Sources:
Lal, Rajiv. (2004). Harrah’s Entertainment Inc. HBS 9-502-011. Boston, MA: Harvard Business School
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Overhaul Rewards System: Weak Penetration and Perception
Casino customers are well aware of the variety of rewards programs that are offered by each casino
company
– Rewards offerings are commonly discussed on casino blogs and forums- frequent casino visitors are always
looking to get the best bang for their buck
Stiff competition amongst rewards programs
– Customers often structure their vacations and casino visits based on the “comps” they have earned in the past
– Total Rewards Program is commonly praised by casino-goers due to generous and frequent “comps” (see next
slide)
Frequent casino-goers have observed Wynn “comps” are harder to come by, and require more
spending to achieve rewards
– This is at odds with the calculated rewards offered per dollar spent (see next slide)
– This gap between reality and perception may be explained by Wynn’s “pull” approach to comps vs. other casinos’
“push” approach
– Recommendation: At minimum, launch a rebranded card and shift to “push” delivery
“If you're only a low roller you're unlikely to earn much
at all in terms of comps but still charge stuff to your room
and ask at the Red Card desk is any of your charges
can be taken care of before you check out. A few bucks
is better than nothing.” – [Trip Advisor]
Customer Insights on Wynn Red Card:
Sources:
-Meltzer, Marc. "Reward View: Wynn Las Vegas Red Card." Rewardology. RewardView, 16 Jan. 2015. Web. 31 Mar. 2015.
-"Las Vegas Comps For Gamblers." Online Blackjack Real Money. Online Blackjack Real Money, n.d. Web. 17 Apr. 2015.
-Blagger. "Las Vegas Forum." Wynn Red Card. TripAdvisor, 4 June 2013. Web. 17 Apr. 2015.
“Wynn Las Vegas is a luxury resort and to receive
rewards you have to spend money as if you’re in a
luxury resort. Comps and discounts aren’t offered to
just anybody. In fact, comps may be more difficult
to come by at Wynn Las Vegas than most resorts in
Las Vegas.”- [Revardview.com]
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Overhaul Rewards System: Partner with Major Credit Card
Advantages of Pairing with Major Credit Card
By pairing up with Visa, Total Rewards allows users to earn points in purchases made within Caesars
owned casinos, hotels, and restaurants, as well as everyday purchases [Totalrewards.com]
Access to customers’ credit card purchasing trends allows for more data on how to specify marketing
tactics, as well as revealing high-rollers for aggressive targeting
– “…we may collect certain personal information that we understand may be considered private or confidential”
– “…to improve the products and services we provide you and develop new products and services”
– “…to generate aggregate statistical studies about our customers”- [http://caesarscorporate.com/privacy/]
Survey respondents earning over $75,000 per year and interested in casino resorts: 46% either “Very
Likely” or “Likely” to use such a card
“Total Rewards is the most liberal VIP program
on the strip when it comes to giving
complimentary hotel stays. These offers are
emailed to existing card holders quite
regularly.”- [onlineblackjackformoney.org]
Key Take-Aways: Wynn is losing out on customer reach through its
“weak” loyalty program!
By pairing up loyalty program with a major credit
card brand, Wynn could leverage more data
driven marketing efforts to increase casino visits,
brand awareness, and customer loyalty
This is important: Caesars’ loyalty program
database is currently valued at $1 billion by
creditors in its bankruptcy case
Cash back earned from spending $100
Wynn $ 0.67
Las Vegas Sands $ 0.60
MGM Grand $ 0.67
Caesars $ 1.00
Sources:
-"Las Vegas Comps For Gamblers." Online Blackjack Real Money. Online Blackjack Real Money, n.d. Web. 17 Apr. 2015.
-"Privacy." Caesars Entertainment Corporation. Caesar's Corporate, 17 Nov. 2012. Web. 12 Apr. 2015.
-"Program Rewards Comparison." M Life. MGM Grand, n.d. Web. 12 Apr. 2015.
"Become a Member." Caesars Total Rewards: Visa. Caesars Entertainment Corporation, n.d. Web. 12 Apr. 2015.
http://www.wsj.com/articles/in-caesars-fight-data-on-players-is-real-prize-1426800166
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Wynn Palace: Location, Location, Location Nearly every major casino in
Macau located on Cotai Strip
Wynn Palace
– Est. Completion 2016
– Located off the main street
– Guests must travel one block
over
– ~75% of revenues come from
Macau [Bloomberg]
– Next to the international
airport [MacauTripping]
Taking down the Venetian
– The Venetian is the major
player in Macau
– Most popular resort on the
Cotai strip [MacauTripping]
– Most luxury hotels surround
the Venetian
– Wynn Palace needs to develop
a strategy to divert traffic from
this central location
Sources:
Chan, Vinicy. "Wynn Macau Gets Land Grant for Casino on Cotai Strip." Bloomberg. May 22, 2012. Accessed April 17, 2015.
http://www.bloomberg.com/news/articles/2012-05-02/wynn-macau-gets-land-approval-for-casino-on-cotai-gambling-strip.
Updated Cotai Map - Wynn Cotai, MGM Cotai, MegaBox, Hello Kitty and More." MacauTripping. March 3, 2008. Accessed April 17, 2015.
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Divert Traffic Off Cotai Strip: Unique, On-Brand Attraction Wynn needs an attraction no other hotel has
– Nearly all major casinos have something to attract
tourists beyond actual services
– For instance, MGM Grand offers a fountain show
once an hour that attracts many tourists
Attractions have incredible success in bringing
in visitors
– In Las Vegas, 4 of 10 most popular attractions are
owned by casinos with the intent of driving traffic
[US News]
– Visitors go to see the attractions, but..
Stay and gamble after
Visit restaurants for dinner
Possible Idea: Wynn should invest in an ice bar
with a skating rink
– Ice Bar is unique and offers tourists a place to cool
off from the heat
Average temperature in Macau: 72˚F
Typical ice bar temperature: 23˚F
– Ice skating rink would enable customers to have a
fun way to relax and cool off
– Ice bars have little cost other than cooling the area
Sources:
•"The Venetian Casino and Grand Canal (Best Things to Do in Vegas)." US News and World Report. Accessed April 21, 2015.
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Wynn has several opportunities to drive higher ROA1. Wynn should pursue a localized casino strategy by soliciting single bids in major cities
Survey data suggests strong support for development of casino resorts in major cities, but not necessarily the
development of multiple gambling venues; developments in Boston, NYC, and Philadelphia reflect this
This situation creates opportunities to increase margins through legally protected monopolies and duopolies, as
opposed to environments like Las Vegas with its seventy hotels on the Strip alone
2. Non-core segments like entertainment and restaurants should be increasingly but selectively
outsourced in new casino resorts
By owning and operating all restaurants, spas, entertainment and design they drive up costs and required assets
Very low perception of high value-add, differentiation, or brand consistency from survey results – statistically
insignificant underperformance to unintegrated Las Vegas Sands
Margins from leasing operations shown as equivalent in most business segments and only slightly lower in
entertainment offerings; however, even underperformance on the bottom-line may be worthwhile if it means
higher traffic and lower risk in cyclical downturns
3. Wynn should overhaul rewards system and partner with a major credit card in order to
collect data on key customers and optimize marketing strategies
Overhaul the way in which customers access their rewards by pushing to customers rather than requiring pull
Partner the Wynn Red Card rewards program with a major credit card to maximize data collection
There is significant demand for such a card in relatively high net worth individuals – 44% Very Likely or Likely
Although the rewards system itself if not highly valued by customers the resultant data is highly valued by
operators – valued at $1 billion in Caesars Entertainment bankruptcy
4. Wynn Palace needs to divert traffic off of the Cotai Strip by developing an attraction
Front-Half Deliverable
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Firm and Industry Background Industry Overview
– The Casino Hotel Industry consists of short-term lodging in hotel facilities with a casino on the premises
Firms in the industry generally offer a range of services and amenities, such as food and beverage services,
entertainment, valet parking, swimming pools and conference and convention facilities
– Industry sales in 2014: $53.1 Billion
– Only 20 US states allow commercial casinos of some form
– Key Players: Las Vegas Sands, Wynn, MGM Resorts, Caesars
Client Firm: Wynn Resorts
– Locations in Las Vegas and Macao. Location in progress in Everett, MA
– The only hotel casino that operates their restaurants in-house
– Recently closed a deal with MBTA on a train stop to provide transportation to casino
– 16,500 employees
Leader Firm: Las Vegas Sands
– Locations in Las Vegas, Macao, Singapore, Macao
– Strongest development in Macao with multiple properties on Cotai Strip
– 40,000 total employees
Industry Level Issues: – Decreasing domestic sales, yet more casinos are opening due to states interested in the potential tax revenue
– Online gambling is becoming more common and could act as a potential substitute for casinos and other gambling
– Intense competition in Asian markets for limited licenses and tourist flow
Sources:
• Arsenault, Mark. "Wynn Closes on Everett MBTA Land." Boston Globe.
• Brennan, Andy. "Casino Hotels in the US." IBISWorld.
• Brustein, Joshua. "New Jersey's Casinos Are Sinking Faster Than Online Gambling Can Rise.” Bloomberg Business.
• Palmeri, Christopher. "Local Casinos Are a Losing Bet." Bloomberg Business, April 3, 2014.
19Strategy Consulting for Wynn Resorts
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Analysis of Financial Performance Industry Definition: Establishments that primarily provide short-term lodging in hotel
facilities that have a casino on the premises
• Industry Firms: Las Vegas Sands, Wynn, MGM Resorts, Caesar's
• ROA is the best measure profitability in the casino hotel industry because profits are driven by company’s assets in hotel and casino infrastructure, which serve as the primary attraction to the industry’s consumers
• The casino hotel industry has a negative influence on the economic wide average ROA
• Wynn has an ROA that is 5% above the industry average, and outperforms much of the industry, yet is still underperforming behind Las Vegas Sands, the leader of the industry
Analysis of Profitability(Return on Assets 2010-2014)
4%
Economic
Average
-2%
Industry
Influence
2%
Industry
ProfitabilityStrategy
Influence
WYNN
Profitability
7%5%
Sources:
•“MarketLine Industry Profile: Casinos and Gaming in the United States.”,
Marketline Report., November 2014., DataMonitor.
20Strategy Consulting for Wynn Resorts
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Analysis of Industry Environment
IndustryRivalry
Suppliers Buyers
Potential Entry
SubstitutesPower of Suppliers
Alcohol, food, machines
• Large amount of suppliers (because they are generic inputs, the industry has a large amount of options)
• Low differentiation of products • Ability for industry to integrate backwards
(easier for the companies inside the industry to get into the suppliers industry than the supplier firms to integrate forward)
Extent of Rivalry
Las Vegas Sands, Wynn, MGM, Caesars
CAGR = 2.74% [American Gaming Association]• Low Market Concentration (C4 = 32%) [IBISWorld]• Large amount of casinos in locales where legalized• High exit barriers (high leverage, remodel cheaper than exit) • Low differentiation in physical gambling• Depending on region - Industry revenues either actively
shrinking or growing at rate below GDP, increasing crowding
Power of Buyers
End consumers• Fragmented ( the consumers are individuals)
But…• High-rollers have a large influence and generate a lot of
revenue for individual casinos• Companies comp many expenses for the high-rollers• Very low switching costs; the resorts are right next to each
other and have very similar offerings • Price sensitive
Threat of Entry Potential Entrants: Luxury hotel companies with existing
infrastructure
• Long and expensive application process for a license
• Strict Policies and regulations made by the government
• New licenses tend to go to existing casino hotel companies
• High startup investment ($550-$600 million)
• Economies of scale
• Rev. Per Square Foot
• Small Casinos: $898
• Large Casinos: $1942
[IBISWorld]
Threat of Substitutes Potential substitutes: Lotteries, sports and race
gambling, online gambling, hotels without casinos
• Online gambling becoming an increasing trend
• Since 2003 revenue has grown from $7.4
billion to $41.4 billion [Bloomberg]
• High taxes on winning can lead vacationers to
activities other than gambling [Bloomberg]
Sources:
• Brennan, Andy. "Casino Hotels in the US." IBISWorld.
• Brustein, Joshua. "New Jersey's Casinos Are Sinking Faster Than Online Gambling Can Rise.” Bloomberg Business.
• Palmeri, Christopher. "Local Casinos Are a Losing Bet." Bloomberg Business, April 3, 2014.
• "Gaming Revenue: 10-Year Trend." American Gaming Association. January 15, 2014. Accessed April 21, 2015.
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Industry Trend Analysis
Trends & Dynamics (examples) Impact on 5 Forces
• BTE
• Rivalry
• Rivalry
• Substitutes
• Buyer Power
Total Impact on
Industry Profit
• #3 – Mixed License EnvironmentLimits on licenses in Asian markets,
increasing regional bids in US
• #2 Legalization of online gamblingSince 2003 revenue has grown from $7.4 billion to
$41.4 billion [Statista]
.
• #1 Expansion to AsiaMacao growth overtakes Las Vegas
revenues
• Supplier Power
• Rivalry
• Substitutes
Sources:
H2 Gambling Capital. "Market Size of the Global Online Gaming Market 2003-2015." Statista.
Accessed April 21, 2015. http://www.statista.com/statistics/270728/market-volume-of-online-
gaming-worldwide/.
22Strategy Consulting for Wynn Resorts
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Las Vegas Sands: Strategic Positioning
Major casino operators tend to aim for differentiation and broad market appeal
Multiple casinos generally do not share the same branding, though similar elements are common
Multiple brands allow for diversified target markets, usually based on income
Expected casino revenues allow cheap, accessible room offerings at luxury resorts
Las Vegas Sands has generally positioned itself as:
– Luxury, high-value and differentiated service
– Geographically focused on Asian markets
– Broad market appeal through themed resort design
Attracts families and tourists more than VIP high rollers
– Broad market appeal through convention emphasis
Attracts otherwise unlikely gamblers
– Flexible gaming emphasis depending on region
Cost Leadership Differentiation
Broad
Market
Narrow
Market
Cost Leadership Differentiation
Broad
Market
Narrow
Market
Company Positioning
Owned Casino Positioning
Sources:
•“Company Profile: Las Vegas Sands Corp.”, Marketline Report, July 15th, 2014., DataMonitor
•“Company Profile: Las Vegas Sands Corp.”, Marketline Report, July 15th, 2014., DataMonitor.
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
•“Company Profile: MGM Resorts International”, Marketline Report, August 27th, 2014., DataMonitor.
23Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Las Vegas Sands: Key Elements of Strategic Actions
Macao
Development
Developed
2 million sq ft
of conference
space
Mass Market
Appeal
Attract
Conventions
Negotiate
Early Land
Concessions
Themed Tourist
Attraction
Majority of Gaming
Market by
Hotel Rooms
Invest in
Transportation
Infrastructure
Sands Rewards
Club
Mass Market
Expansion w/
Parisian
Brand Reputation
For Trade Shows
Developed
1.2 million feet
of shopping
Concerts,
Sporting Events
Sources:
•“Company Profile: Las Vegas Sands Corp.”, Marketline Report, July 15th, 2014., DataMonitor.
24Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Las Vegas Sands: Willingness to Pay and Costs
Although casinos tend to locate near each other and thus earn revenues from each others patrons, the number of rooms available is a volume driver of performance
Casino revenues make up 78% of total revenues for Las Vegas Sands, which is fairly typical
Willingness to pay is driven by the factors that increase gambling dollars-at-play, including:
– Average player income (luxury hotel drives upward)
– Gambling culture (Asian presence drives upwards)
– Other hotel & casino attractions
– Promotional spending (slightly more at Wynn)
LVS has higher number of rooms than Wynn, especially in Macau region, but lower than average competitor
– Economies of scale reduce costs
– 6,000 room budget hotel Sands Cotai Central drives down WTP significantly [TripAdvisor]
0
500
1000
1500
2000
2500
3000
Price Costs Price Costs
Per
Un
it R
oo
m D
ay
Price
Room
Retail, Entertainment &other
Food & Beverage
Promotional Allowances
Casino
WYNN LVS
Sources:
SydneyKate. "A Rather Fancy Holiday Inn - Holiday Inn Macao Cotai Central." Trip Advisor. May 14, 2012. Accessed April 21, 2015
*Revenue and cost data from WYNN and LVS 10-ks
25Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Las Vegas Sands: Translating Strategy into OutperformanceLas Vegas Sands has dramatically outperformed the industry over the last five years
–While Wynn remains a close competitor, Caesars and MGM drag down overall performance
Most diversified U.S. operator – able to weather decline in Las Vegas casino performance post-crisis
Successful call on rise of Macao has led to dominant position in fastest growing market
Convention and trade show specialty has increased room bookings and successful license bids
Differentiated theme hotels have increased mass market appeal in Asian market
Analysis of Profitability(Return on Assets 2010-2014)
4%
Economic
Average
-2%
Industry
Influence
2%
Industry
ProfitabilityStrategy
Influence
LVS
Profitability
8%6%
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
26Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Las Vegas Sands: Sustainability of Profits
Strong chance of sustainability primarily through first mover advantage
– Location Preemption: Cotai Strip in Macao
– Institutional Barriers: Limited Casino Licenses
– Economies of Scale: Integrated Supply Chain
– Positioning Preemption: Convention Emphasis
Limited space and licenses ensure this lucrative concentration cannot be replicated
Gaming Operator Hotel Room % of Gaming Operators % of Total Market
Sands China 9,277 56% 38%
Galaxy Entertainment 3,309 20% 14%
Melco Crown 1,677 10% 7%
Wynn Resorts 1,014 6% 4%
SJM Holdings 839 5% 4%
MGM China 587 4% 2%
Subtotal Gaming Operators 16,703 100% 68%
Other 4/5 Star 7,537 0% 32%
Total 24,240 100% 100%
27Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Wynn Resorts: Strategic Positioning
Major casino operators tend to aim for differentiation and broad market appeal
Multiple casinos generally do not share the same branding, though similar elements are common
Multiple brands allow for diversified target markets, usually based on income
Expected casino revenues allow cheap, accessible room offerings at luxury resorts
Wynn has positioned itself as:
– Luxury, catering to higher income adults and retirees
– Geographically focused on US markets
– More narrow market appeal
Attracts golfers and VIP high rollers
– Narrow Market Appeal through luxury suites
Attracts likely gamblers and drinkers through entertainment
– Focuses on luxury dining and entertainment
Cost Leadership Differentiation
Broad
Market
Narrow
Market
Cost Leadership Differentiation
Broad
Market
Narrow
Market
Company Positioning
Owned Casino Positioning
Sources:
Company Profile: Las Vegas Sands Corp.”, Marketline Report, July 15th, 2014., DataMonitor.
“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
“Company Profile: MGM Resorts International”, Marketline Report, August 27th, 2014., DataMonitor.
28Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Wynn Resorts: Key Elements of Strategic Actions
Vertical
Integration
Geographic
Diversity
Luxurious
Experience Exotic
New
LocationsCompletely
Unique
Hotels
Casino
Owned
Restaurants
Compete
for new
licenses
In-house
Interior
Design
Invest in
the
community
Build strong
loyalty
Wynn Controlled
Entertainment
(Showstoppers)
Wynn Red
Card Loyalty
Program
Buy
Transport
Infrastructure
LandFirst in
Massachusetts
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
•"Wynn Resorts Takes Final Possession of MBTA Land." A Wynn For All. March 3, 2015. Accessed April 21,
2015. http://www.awynnforall.com/blog/category/community/everett/.
29Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
0
500
1000
1500
2000
2500
3000
Price Costs Price Costs
Per
Un
it R
oo
m D
ay
Price
Room
Retail, Entertainment &other
Food & Beverage
Promotional Allowances
Casino
Wynn Resorts: Key Drivers of WTP
•Private Wynn branded restaurants are major
cost driver – Contribute to second largest cost bucket after
Casino
– Spend less on entertainment and family
restaurants
•Wynn drives Willingness to Pay through– Heavy promotion and catering for VIP high
rollers
– Creating luxurious suites in hotels with unique
dining options
– Entertainment is mostly available only at Wynn
owned theaters
•Specialize in a one of a kind experience for
customers with larger rooms and more suites– Leads to higher cost per room
– Less rooms available at each hotel
– Cost per night above the typical cost
WYNN LVS
Sources:
• Wynn Resorts Annual Report. (2014). Form 10-K 2014. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
30Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Wynn Resorts: Measures of Profitability
•Wynn has higher than
average profitability― Attracts higher value
customers
― Effectively uses
promotional appeal
― Cater more towards
older customers
•Wynn only casino and hotel that own and operate their own restaurants― Raises costs for food and beverages
― Creates more of a unique dining experience customers cannot get elsewhere
•Wynn designs and builds their own casinos in house― Own all interior design, help to create unique experience for customers
•Operate very own Broadway show― Can only be seen in Wynn owned buildings and theaters
Analysis of Profitability(Return on Assets 2010-2014)
4%
Economic
Average
-2%
Industry
Influence
2%
Industry
ProfitabilityStrategy
Influence
WYNN
Profitability
7%5%
31Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Strategic Assessment: Industry-Level Key Challenges:
1. Difficulty in changing penetration in Asian markets
Macao is the only place in China in which it is legal to gamble
Limited licenses and space prevent new entry and repositioning from casinos
2. Rising taxes in the US and China
China is a huge market for the casino resort industry; however, the Chinese government is cracking down on
wealthy Chinese making it harder for the industry to profit (anti-extravagance campaign)
US heavily taxes casino revenues
3. The Chinese government will not allow foreign construction workers to work on site in Macau which
slows down the construction for the entire industry---there are not enough local construction
workers to fill the jobs
4. The US market is oversaturated, there are tons of casinos and new states getting casino gaming
licenses — It used to only be Las Vegas and Atlantic City, with little foreign competition
Key Opportunities:
1. Attempt regional entry in Asian markets
Recent new bids in Singapore in South Korea
2. Take advantage of a growing number of Chinese tourists in the United States (these are middle class
people who have money to travel for the first time but probably not enough to stay in a 5-star resort)
3. Build an increasingly differentiated positioning outside of crowded strategic space
Sources:
Bolton, Shawn. "Macau Casinos May Struggle In Early 2015." Yahoo Finance. December 19, 2014. Accessed March 2, 2015.
http://finance.yahoo.com/news/macau-casinos-may-struggle-early-191918522.html.
32Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Strategic Assessment: Firm Level Key Challenges:
1. Wynn is not very diversified (only 4 properties, 2 in Macau and 2 in Las Vegas)
2. Wynn only caters to very high-end customers — very high price point
3. In China there is more of a market for the middle class because government regulations on upper
class are tightening—this puts Las Vegas Sands in a better position than Wynn Resorts
4. Owning and operating all of their own restaurants benefits Wynn but also adds financial risk—
however allows for better control in terms of the customer experience
Key Opportunities:
1. Capitalize on their new growth opportunity in Everett, MA — this will help them diversify
2. Further expansion available in Asia and opportunity to move Macao emphasis off Cotai Strip
3. Positioning still developing in Macao and other new regions – opportunity to differentiate
Back-Half Deliverable
34Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Value Chain Overview
= Firm owns/operates these steps in the value chain
Design
Construction
Operations
Marketing
License
Acquisition
Game
Development
Operations
Debt
Collection
Facility
Development
Operations
Marketing
Facility
Development
Selection
Operations
Marketing
Facility
Development
Selection
Operations
Marketing
Gaming Restaurants Entertainment Shopping
Customer
Acquisition
Hotel
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
“MarketLine Industry Profile: Casinos and Gaming in the United States.”, Marketline Report., November 2014., DataMonitor.
Brennan, Andy, “Casinos & Gaming.”, IBISWorld Industry Report 71112, November 2014., IBISWorld
35Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Horizontal Scope Analysis
Wynn Resorts is horizontally integrated in several different business areas:
gaming, hotel accommodations, restaurants, entertainment, and shopping
While this collection of services is not unique, Wynn’s active involvement in each
service is significantly greater than competitors, who essentially only lease space
Wynn is the only gaming resort to own and operate their own restaurants,
entertainment shows, spas, and design firms
Wynn justifies this involvement by claiming it increases willingness to pay by
reinforcing brand image and increasing the quality and consistency of experience
in all aspects of the resort
However, whether this assertion translates to reality is questionable:– Entertainment shows “Show Stoppers” and “Le Reve” are run and funded by Wynn at much lower costs than
competitors, yet these aspects of the business are still not profitable
– Perceived restaurant quality and entertainment quality is comparable to outsourced segments by equal-priced
competitors
– This strategy forces the company to take on risk and deploy assets in areas that are NOT core competencies
Gaming Restaurants Entertainment ShoppingHotel
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
“MarketLine Industry Profile: Casinos and Gaming in the United States.”, Marketline Report., November 2014., DataMonitor.
Clarke, Norm. "'Showstoppers' Dazzles on Opening Night." Las Vegas Review-Journal. December 22, 2014. Accessed April 21, 2015.
36Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Vertical Scope Analysis: Hotels
Construction
Operations
Marketing
Customer
Acquisition
Hotels“Upstream”
“Downstream”
Vert
ical
Sco
pe
Vertical Integration
Backward integration― Wynn owns and operates custom designed hotels for
unique customer experience
― Owning the designer allows for more control of the hotels’ concepts
― Wynn can customize hotels based on area instead of relying on external designer research
Forward integration ― By owning their marketing efforts Wynn is able to better
differentiate their most valuable customers
― Wynn database is highly valuable with information on nearly every guest
― Customized marketing offers a wider array of options to bring back repeat business
Competitor hotels do not own their own designers
― Industry leader Las Vegas Sands outsources to other design firms, as do materially all other major players
= Firm owns/operates these steps in the value chain
Design
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
•“Wynn Investor Relations Annual Presentation” (2014). Retrieved from Wynn corporate site www.wynnresorts.com
37Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Operations
Marketing
Restaurants“Upstream”
“Downstream”
Vert
ical
Sco
pe
Vertical Integration
Backward integration― Wynn owns and operates all chains of the facility development
including construction and design
― Buys all ingredients for meals from producers instead of leaving it to separate restaurant entities
― Competitor Hotels outsource restaurant design and complete experience to outside companies
Forward integration ― Wynn hires and trains all of its own chefs
― Can create a specialized meal available only at the Wynn
― Customized marketing offers a wider array of options to bring back repeat business
While owning the restaurants may offer control and benefits like consolidated purchasing power, this strategy appears to result in a net cost increase and forces focus to non-core business areas
= Firm owns/operates these steps in the value chain
Facility
Development
Vertical Scope Analysis: Restaurants
Sources:
•Patriot-Bridge Staff. "Wynn Community Meeting With Engaged Charlestown Proves Productive, Useful." Charlestown PatriotBridge.
February 12, 2015. Accessed April 21, 2015.
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
•Stutz, Howard. "Plunge in Macau Revenue Leads to Lower Profits for Wynn Resorts." Las Vegas Review-Journal. February 3, 2015.
Accessed April 21, 2015.
38Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Technological Change: Big Data Harrah’s Introduction of the Loyalty Program to the Casino and Gaming Industry
– $100mm investment in IT and database marketing lead to a 50% increase in their revenues from
1997-1999 (Harrah’s Entertainment HBS)
– Set an industry trend for competitors to adopt similar loyalty program strategies
– Leverages customer data to offer promotions in a successful effort to increase spending in casinos
and restaurants
Wynn’s Loyalty Program: Is One Tier Good Enough?– Wynn’s loyalty card groups its entire customer base into one group
– Customers can use it to gamble, dine in their 18 different restaurants, and Wynn retail outlets
– Customers can have their cards reviewed by Wynn hosts to check for any discounts they may have qualified for
– “Wynn Las Vegas is a luxury resort and to receive rewards you have to spend money as if you’re in a luxury
resort”- Rewardview.com
Differences in Data Collection as well as Utilization• Competitor Caesar’s offers a partnered credit card that gives reward points in varying amounts on both casino
expenditures and everyday purchases, creating a vastly larger pool of data
• While reviews of the loyalty card indicate it is one of the worst values in Vegas, our analysis of the dollar value of
rewards against the required expenditure to earn them reveals Wynn’s program as one of the best
• This startling disconnect between marketing success and program expenditure may be due in part to Wynn
requiring customers to specifically inquire in order for their rewards to be disbursed
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
Lal, Rajiv (2004).Harrah Entertainment Inc. HBS 9-502-011. Boston, MA Harvard Business School
Metlzer, Marc. “Wynn Reward View: Las Vegas Red Card”. Rewardology, RewardView 16 Jan 2015 Web. 31 Mar. 2015
Brennan, Andy, “Casinos & Gaming.”, IBISWorld Industry Report 71112, November 2014., IBISWorld
39Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Technological Change: Online Gambling Online Gambling’s Threat to
the Casino Industry– Justice Department reversed its
long-held ban on online gambling in
2011, opening up the debate to the
state level, posing a threat to
gamblers to resorting to placing
their wages over the internet and
reducing their casino visits (NY
Times)
– Increasing innovation to online
gambling to offer more realistic
experiences with 3D imagery and
live dealers (Microsoft Advertising)
– Online gambling is legal in 3 states,
BUT have showed an initial poor
performance due to technical
glitches and weak marketing
(Bloomberg)
– Online and casino audiences are
quite different, at least for now
(Bloomberg)
Performance
Time
InitialPerformance
Deficiency
Disruptive technology:Online Gambling
Sustaining Technology: Loyalty Cards + Database marketing
(incrementalimprovement only)
Harrah’s
database
marketing
tactic
Current
position of
online
gambling
?
Sources:
Streitfeld, David. "Tech Industry Sets Its Sights on Gambling." The New York Times. The New York Times, 17 Feb. 2013. Web. 30 Mar.
2015.
-"Casino Insights and Trends." Microsoft Advertising (May 2011). Microsoft. Web. 30 Mar. 2015.
Brustein, Josh. "New Jersey Reports Online Gambling Revenue And It's Not Enough to Save Its Casinos." Bloomberg. Bloomberg, 15 Jan.
2015. Web. 10 Feb. 2015.
Palmeri, Christopher. "Local Casinos Are a Losing Bet." Bloomberg Business, April 3, 2014.
40Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Corporate Social Responsibility Overview
Recent Highlights of Wynn’s “Corporate Social Responsibility” Initiative
11,000 toys distributed to students in eight elementary schools
In 2011, Wynn donated $25 million to the Universityof Macau Development Foundation(Continue
to donate $10M until 2022)
In 2013, Las Vegas resorts recycled 6,100 pounds of soap and 3,500 pounds of bottled product (leader
program in Nevada)
Teamed with the Boston Bruins to buy and distribute toys to underprivileged children, funded free
summer concerts in communities outside of Boston and donated money to improve an inner-city
Little League baseball field and memorial garden
Why so many “charitable” programs?– Casinos have a terrible reputation for increasing crime, supporting addictions, and draining community wealth
– While there is some evidence to this, it largely stems from gambling historically being run by organized crime
– In order to secure community and government approval to build casinos in new areas, need to establish goodwill
– Non-market strategy is extremely important to this business due to:
Strict regulatory barriers to entry
The advent of online gambling and its possible widespread legalization
Government oversight on gaming operations and the appropriate setting of odds and rules
Sources:
•“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
“MarketLine Industry Profile: Casinos and Gaming in the United States.”, Marketline Report., November 2014., DataMonitor.
Brennan, Andy, “Casinos & Gaming.”, IBISWorld Industry Report 71112, November 2014., IBISWorld
41Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Wynn’s CSR initiatives are extremely
oriented towards self-interest, and as
such would not conflict with Milton
Friedman’s theories
Narrow Stakeholders
– Community – Expansive donating to
schools, funding of public transit
infrastructure, etc. (esp. during bid)
– Customers – Reward loyalty cards and
aggressive promotional allowances
– Employees – typically one of the largest
employers in the operating area
– Financiers – relentless emphasis on
financial performance
Broad Stakeholders
– Government – donations to community
projects, political donations
– Competitors – engages in lobbying
against online gambling that would hurt
industry as a whole
The Firm
CustomersCommunities
Employees
Suppliers
Financiers
Government
Stakeholder Analysis
Sources:
•“Wynn Resorts - Investor Relations." Wynn Resorts - Investor Relations. Web. 6 Apr. 2015. <http://www.wynnresorts.com>.
•WBUR News and Wire Services. "Panel Picks Wynn’s Everett Casino Proposal." WBUR. September 16, 2014. Accessed March 5, 2015.
http://www.wbur.org/2014/09/16/wynn-everett-casino-proposal-preferred.
•Arsenault, Mark. "Wynn Closes on Everett MBTA Land." Boston Globe.
•Vennochi, Joan. "MBTA Land Sale Could Sink Steve Wynn’s Everett Plan." BostonGlobe.com. April 7, 2015. Accessed April 21, 2015.
42Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Bibliography “MarketLine Industry Profile: Casinos and Gaming in the United States.”, Marketline Report., November 2014.,
DataMonitor.
Brennan, Andy, “Casinos & Gaming.”, IBISWorld Industry Report 71112, November 2014., IBISWorld
“Company Profile: Las Vegas Sands Corp.”, Marketline Report, July 15th, 2014., DataMonitor.
“Company Profile: Wynn Resorts, Limited”, Marketline Report, November 25th, 2014., DataMonitor.
“Company Profile: MGM Resorts International”, Marketline Report, August 27th, 2014., DataMonitor.
Las Vegas Sands Annual Report. (2014). Form 10-K 2014. Retrieved from SEC EDGAR website
http://www.sec.gov/edgar.shtml
Wynn Resorts Annual Report. (2014). Form 10-K 2014. Retrieved from SEC EDGAR website
http://www.sec.gov/edgar.shtml
Caesers Entertainment Annual Report. (2014). Form 10-K 2014. Retrieved from SEC EDGAR website
http://www.sec.gov/edgar.shtml
MGM Resorts Annual Report. (2014). Form 10-K 2014. Retrieved from SEC EDGAR website
http://www.sec.gov/edgar.shtml
“Las Vegas Sands, Investor Relations Q4 Earnings presentation” (2014). Retrieved from Las Vegas Sands corporate
site www.sands.com
“Wynn Investor Relations Annual Presentation” (2014). Retrieved from Wynn corporate site www.wynnresorts.com
"Facts at Your Fingertips." 1 Jan. 2009. Web. 1 Mar. 2015.
<http://www.americangaming.org/sites/default/files/uploads/docs/facts_at_your_fingertips_12022010.pdf>.
"Overview: An Investor's Guide to the Casino Industry." Why New Entrants Haven't Been a Threat for the Casino Industry.
Web. 1 Mar. 2015. <http://marketrealist.com/2014/09/why-new-entrants-havent-been-threat-casino-industry/>.
"Topic: Casinos." Www.statista.com. Web. 2 Mar. 2015. <http://www.statista.com/topics/1053/casinos/>.
WBUR News and Wire Services. "Panel Picks Wynn’s Everett Casino Proposal." WBUR. September 16, 2014.
Accessed March 5, 2015. http://www.wbur.org/2014/09/16/wynn-everett-casino-proposal-preferred.
43Strategy Consulting for Wynn Resorts
TIBERIUSConsulting
Bibliography Arsenault, Mark. "Wynn Closes on Everett MBTA Land." Boston Globe.
H2 Gambling Capital. "Market Size of the Global Online Gaming Market 2003-2015." Statista. Accessed April 21,
2015. http://www.statista.com/statistics/270728/market-volume-of-online-gaming-worldwide/.
SydneyKate. "A Rather Fancy Holiday Inn - Holiday Inn Macao Cotai Central." Trip Advisor. May 14, 2012.
Accessed April 21, 2015.
Clarke, Norm. "'Showstoppers' Dazzles on Opening Night." Las Vegas Review-Journal. December 22, 2014.
Accessed April 21, 2015. http://www.reviewjournal.com/columns-blogs/norm-clarke/showstoppers-dazzles-
opening-night.
Patriot-Bridge Staff. "Wynn Community Meeting With Engaged Charlestown Proves Productive, Useful."
Charlestown PatriotBridge. February 12, 2015. Accessed April 21, 2015.
Stutz, Howard. "Plunge in Macau Revenue Leads to Lower Profits for Wynn Resorts." Las Vegas Review-Journal.
February 3, 2015. Accessed April 21, 2015
Lal, Rajiv (2004).Harrah Entertainment Inc. HBS 9-502-011. Boston, MA Harvard Business School
Metlzer, Marc. “Wynn Reward View: Las Vegas Red Card”. Rewardology, RewardView 16 Jan 2015 Web. 31 Mar.
2015
-Bolton, Shawn. "Overview: An Investor's Guide to the Casino Industry." Market Realist. Market Realist, 5 Sept.
2015. Web. 10 Feb. 2015.
-Brennan, Andy. "Casino Hotels in the US." IBISWorld.
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Casinos." Bloomberg. Bloomberg, 15 Jan. 2015. Web. 10 Feb. 2015.Palmeri, Christopher. "Local Casinos Are a
Losing Bet." Bloomberg Business, April 3, 2014.
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TIBERIUSConsulting
Strategic Overview of Wynn Resorts and the Casino Hotel Industry
Tiberius Consulting Team:Thomas Brennan, Kepler Edwards, Carol Chase Peterson, Ryan Bach, and Valentina Cerda