1. Grow and build: I, II, & IV Intensive strategies (market penetration, market development & product development) or Integrative strategies (backward, forward, & horizontal integrations) After analyzing the EFE and IFE data for MGM Resorts and inserting those points into the IE Matrix I have identified that MGM falls into the grow and build portion of the matrix. The EFE point of 3.2 indicates that MGM resorts is responding well to opportunities and threats within the industry. The IFE point of 2.3 indicates that the organization is average at best internally. I. Product Development The first strategy I recommend for MGM Resorts in product development. In July of 2015 MGM Resorts announced plans for a 5,000-seat theater at the Monte Carlo Resort and Casino. “The new concert venue will amplify the vibrant entertainment district taking shape on the west side of the Las Vegas Strip with a robust calendar featuring special engagements by many of the music industry’s most celebrated performers.” (PR Newswire). Product development is attempting to increase sales by improving present products and …show more content…
MGM Resorts has proven success as one of the world’s leading global hospitality companies. They currently own and operate a myriad of companies including 15 properties located in Nevada in addition to a 51 percent interest in MGM China Holdings Limited and has 50 percent investments in three more properties located in Nevada and Illinois. The new property, National Harbor, will be located in Prince George’s County, Maryland. “We see enormous opportunity in Maryland. At National Harbor, MGM Resorts is bringing far more than just a casino. We are calling on our years of worldwide resort experience to design a fully-appointed Destination Resort that respects the history and atmosphere of Prince George's County, while meeting the needs of the sophisticated Maryland marketplace.” (MGM National
According to Parnell, Porter’s generic strategy typology consist of a “basic economic assumptions about cost versus differentiation, and the whole notion of focus and market orientation but this strategy has some limitation” (2014). This strategy typology helps to simplify a complex industry by identifying and emphasizing the key strategic factors. These factors are low-cost with focus, low-cost without focus, differentiation without focus and differentiation with focus.
There are typically four areas for market expansion; product development, diversification, penetration, and market development. What business you are in, what brands you have, and the type of products you offer will influence the type of market expansion that best fits the business. Coca Cola is giant in all the areas noted above when it comes to market expansion but what both companies had in common was the recognition that "Market development” was essential to revenue growth.
When testing if a corporate strategy is leading the company to success, there are techniques that can be used to project data collected from the company. Long term attractiveness, competitive strength, and the nine cell industry attractiveness/business strength matrix are used to highlight strategic positions of each business in a diversified company. The industry attractiveness gages the prospects for long-term performance. Competitive strength measures how strong the units are positioned in a business in their industry. Lastly, the nine cell industry attractiveness/business strength matrix merges information on attractiveness and competitiveness to show where in the industry does a unit fit when it comes to long-term success. Walt Disney
The entertainment industry holds the immense potential for growth and development. The industry is constantly evolving and Walt Disney emerge as a global leader and recognized as the world’s second largest media conglomerate in the terms of revenue after Comcast. The Walt Disney Company is a multinational entertainment conglomerate headquartered at California, United States. The company integrated its products into five target segments are as follows: (1) Media Networks (2) Parks and Resorts (3) Walt Disney Studios (4) Disney Consumer Products (5) Disney Interactive. The company has strong diversified product portfolios and generate high returns and revenues from all the target segments but the media networks contributes
The Heart of Atlanta Motel's refusal to accept African American guests created a significant moment in American legal history, as it led to the landmark United States v. Heart of Atlanta Motel case. The motel's discriminatory policy was challenged based on the Civil Rights Act of 1964, which prohibited discrimination based on race, color, religion, or national origin in places of public accommodation. The case made its way to the Supreme Court, where the constitutionality of the Civil Rights Act was put to the test. The Supreme Court's decision, which upheld the Act's validity, had far-reaching effects, impacting both our laws and how people treat one another. The case served as a testament to the power and impact of landmark legal decisions
After analyzing the case of the Santa Fe Grill, I believe they should focus on concept and product testing, test marketing, opportunity assessment, customer satisfaction studies, and competitor analysis. These seem to be important to the overall success of their company, especially competitor analysis so they can see first hand who and what they are competing against. This would include seeing what the competitor is doing product wise, for customer service, and their marketing/advertising strategies and overall how they target their customers. It was said in the case that the success of the restaurant at first got started rather slowly and that the owners needed to understand how to drive customer satisfaction and loyalty. Therefore by conducting research on how to fix the problems, the brand can
Bollenbach, who had a reputation for creating innovative financial structures in the hotel industry, proposed a radical restructuring for MC. Bollenbach’s proposal included breaking MC into two separate entities. The new company would retain the service businesses of MC and have the financial strength to raise capital and take advantage of various investment opportunities. On the other hand, the old company would retain the hotel properties and the pressure to sell properties at reduced prices would be greatly lessened. This drastic restructuring proposal, deemed Project Chariot, had to be evaluated by J.W. Marriott before he went before his board of directors with his ultimate recommendation. Thus, Marriott planned to review the company’s past financial history that led to their current position; evaluate Project Chariot’s advantages, disadvantages and value; determine the bond risk involved if Project Chariot was accepted and finally consider alternative recommendations.
The ease with which firms can enter into a new market or industry is a critical variable in the strategic management process. In some industries the barriers to entry are minimal. In oth...
A company must identify its strengths and weaknesses in order to develop growth. Downsizing products is more important than developing new products. A company must be able to identify where there weak markets are at. Times change and so do products. The products that are less profitable or simply aged are the ones that must be downsized in order to make way for a different, more innovative market. When developing growth strategies a company must use the product/market expansion grid. First the company has to figure out whether they can have better market penetration, second they must consider looking for market possibilities for current products. Third they must develop their products into innovative products that people can’t live without having. Lastly they need to be diverse with their company, therefore expanding and including different features to the company could draw more attention from different
“The Ansoff Matrix (appendix C) shows four different growth strategies that result by combining existing or new products with existing or new markets: market penetration, market development, product development,and diversification” (Fadaei, 2014).
The adaptation of the major business strategy to all the markets where the company’s products are presented.
The second strategy is Market development strategy which focuses on selling the existing product in a completely new market. The organization targets the new geographical area, region which share the same demographic profiles than in the home country. The organization does not have to make a huge change in the product nor they have to change their marketing strategies. There are few of the following ways through which this could be done:
I would recommend the continual implementation of the current strategy. The strategy is working and there is no reason to deviate from it. The company has been very successful in expanding its operations in other countries. I would recommend that the company continue to do that. I would also recommend spending extra resources in the development of new products to keep a competitive advantage over other competitions. The competition is only going to rise because the market has not reached saturation yet. In order to stay ahead of the competition, the company needs to keep researching new products, and stay in sync with the ever changing technology.
Product management is a strategic and business-oriented role, which is focused on satisfied and transfer solutions to market needs. The role may consist of product development and product marketing, which are different (yet complementary) efforts,...
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...