- September 9, 2012
- Posted by: essay
- Category: Free essays
The contemporary business environment is considerably influenced by globalization. At the present moment, the world economy tends to the growing integration and cooperation between different countries and companies. In such a situation, companies that have managed to enter international markets and spread its operations worldwide are in advantageous position compared to companies operating within national frontiers. Basically, the role of globalization increases constantly and it is even possible to estimate that, at the present moment, globalization defines the major trends in the world economy.
Naturally, companies should take into consideration the potential of globalization, but, at the same time, they face serious problems such as the growing competition in all markets. In such a way, globalization may have both positive and negative effects, which should be taken into consideration by companies in the process of the development of their marketing strategies. In this respect, the casino resort industry is particularly susceptible to the influence of globalization. To put it more precisely, the impact of globalization is particularly sensitive in this industry because for a long period of time national markets were close for foreign companies. As a result, many resort companies need to develop new strategies to improve their performance in the future when the national frontiers tend to disappear. One of the most successful casino resort companies is Las Vegas Stands Corp., which has managed to implement a successful marketing strategy. Â At the moment, in spite of current difficult difficulties, the position of the company is still quite strong. Being based in Las Vegas, Las Vegas Strands Corp. actively develops the strategy of the market expansion and, in such a way, it attempts to solve its problems. In fact, its market capitalization has reached $43.7 billion.
However, it should be said that Las Vegas Strands Corp. have faced financial problems and the company suffered from a considerable decrease of its market capitalization. Nevertheless, the company attempts to eliminate its current problems by means of the maximization of the potential of its foreign subsidiaries and optimizing the organizational performance. The latter means that the company mainly attempts to decrease its expenses and maximize revenues in order to improve its current financial position. In this respect, it is important to lay emphasis on the fact that the company attempts to decrease its costs through job cuts, though the major concern of the company still remains the optimization of its market performance through the improvement of the quality of services and promotion of its brand. In actuality, the company is a renowned brand but it was mainly well-known in the USA, while entering foreign markets, namely the market of China the company needs to conduct an aggressive promotional policy in order to draw the attention of customers to its brand and, therefore, form a positive image of the company that will help to attract new customers and develop their loyalty to the company and its brand becomes a symbol of reliability and high quality of services delivered to its customers.
In addition, it is worth mentioning the fact that the current deterioration of the financial situation in global terms as well an ongoing economic recession cannot fail to affect the performance of the company. Obviously, today, Las Vegas Strands Corp. cannot be in isolation from the national economy and the economic crisis because the economic affects practically all industries and all companies. This is why the current difficulties of Las Vegas Strands Corp. are influenced not only by internal problems, but also, and probably mainly, by external problems because the resort industry is traditionally the most affected by the slowdown of economic development and economic crisis.
Obviously, when people start saving, it is the entertainment and resort industries that feel the reduction of customers’ spending first.
At the same time, it is necessary to underline that, according to the conflict theory, while entering new markets the company, such as Las Vegas Stands Corp., as well as any other, can face a problem of the opposition of the local companies as well as the resistance of the local population, which can suffer from the loss of jobs, for instance, in the result of the appearance of the new competitor in the national market. In such a situation, it is extremely important to analyze the current business environment in resort industry and define the major marketing strategy that brought success to Las Vegas Stands Corp.
The competitive environment in the casino resort industry is traditionally considered to be not very favorable for entering new markets because of the presence of companies that have a strong position in the market. Moreover, the situation is deteriorated by the fact that many companies operating in the national market often occupy the dominant position in the national market and, therefore, the entering barriers are extremely high. This trend is typical for many countries, especially, well-developed ones, such as the US, the EU or Australia.
At the same time, it should be pointed out that the legislation of many countries concerning casino resort industry tends to liberalization. In actuality, this means that the national markets become more open to foreign companies, making international market expansion easier for such companies as Las Vegas Stands Corp., which are traditionally oriented on the market expansion. In such a situation, the competition naturally grows because the number of companies that operate in national markets increases in the result of the appearance of new companies from the abroad.
Furthermore, it should be said that the development of the process of globalization contributes consistently not only to the growing competition but it also forces resort companies to mergers and acquisitions and this strategy is amply used by Las Vegas Stands Corp. too.
In fact, mergers and acquisitions may be viewed as a natural response of casino resort companies on the growing competition because, in such a way, they manage to increase their market value, get access to new markets, increase their financial potential and marketing opportunities, as well as acquire important experience and implement new marketing management strategies. In fact, mergers and acquisitions contribute to the elaboration of the most effective marketing strategies taking into consideration the experience of target companies and acquiring companies.
Finally, on analyzing the current competitive environment in the casino resort industry, it should be pointed out that the industry becomes more open for the cooperation between companies and the liberalization of national legislation stimulates the integration of companies and faster international markets penetration. As a result, to remain competitive companies need to introduce strategies of the international market expansion and acquisition or mergers with foreign companies in order to facilitate entering international markets and, therefore, gain competitive advantages compared to their major rivals.
Obviously, the major trends in the contemporary casino resort industry stimulate such companies as Las Vegas Stands Corp. to introduce strategies of the international market expansion. In this respect, it should be said that the company owns property abroad and develops its business not only in the USA but in foreign countries. To put it more precisely, today, Las Vegas Stands Corp. owns the Venetian Resort-Hotel-Casino in Las Vegas, Nevada; Sands Expo and Convention Center in Las Vegas, Nevada; Sands Macao in Macau, China; the Palazzo Resort-Hotel-Casino in Las Vegas, Nevada; the Venetian Macau Resort-Hotel, in Macau, China; and Sands BethWorks in Bethlehem, Pennsylvania (Denney, 203).
In this respect, it should be said that the realization of this strategy may confront certain difficulties. First of all, it should be said that operating in different countries of the world the company needs to adapt to the local market, taking into consideration socio-cultural specificities of each market. At the same time, it should be said that the company should also provide customers with services that meet their needs and these needs may also vary depending on the local mentality, culture and traditions. For instance, it proves beyond a doubt that Asian countries have an absolutely different cultural background, compared to Western people.
In such a situation, the resort company needs to develop the marketing strategy that could meet the needs and preferences of people representing different cultures. To put it more precisely, it is necessary to develop some universal standards that could be applied with an equal effectiveness in different parts of the world where the company operates. In fact, this means the introduction of the universal standards for the personnel of the company in different countries of the world that also implies the necessity to develop the effective system of control. However, such a trend to the universalization of standards does not necessarily mean that it will bring the recognition of the company by local customers. Obviously, the universal standards cannot totally meet the needs of specific cultures and, therefore, there remains a risk of customers’ dissatisfaction. At any rate, it is practically impossible to provide such a flexibility of standards of the company that could meet the demands of all customers, especially if the company operates worldwide.
On the other hand, the international expansion stimulated and facilitated by the process of globalization opens larger opportunities for the company to gain a larger share of new markets, especially in developing countries, where national resort companies are consistently weaker than such companies as Las Vegas Stands Corp. Moreover, the implementation of the international market expansion strategy also decreases the susceptibility of the company to risks of such factors as natural disasters r terror attacks. What is meant here is the fact that operating in different countries, the company can minimize the negative effects of some natural disaster that could occur in one of the countries where the company operates, because the crisis in this country could be compensated by means of the reorientation of the company on other countries. At any rate, the global operation makes the company more flexible in face of such threats as natural disasters or terror attacks.
Nowadays, when many resort companies are in stagnation or in a deep crisis, Las Vegas Stands Corp. remains one of the leading resort companies in the world despite all the difficulties it faces, including both objective and subjective factors, which led many of its competitors to a crucial position in the market. Today, the company has good perspectives of sustainable growth of the company.
Nonetheless there is some criticism that is still relevant and the problems the company faces still have to be solved. For instance, the company has been criticized for its policy in relation to its workers. To put it more precisely, trade unions criticizes Las Vegas Stands Corp. for refusing to recognize trade unions and allegations of poor working conditions. Unfortunately for the company and its workers such allegations and criticism are quite reasonable because, for instance, Las Vegas Strands Corp’s staff are banned from charging their own mobile phones at work to reduce the company’s electricity bill. Such a decision is quite controversial because on the one hand it is really cost saving but, on the other hand, such measures are quite insignificant.
Obviously Las Vegas Strands Corp. remains quite a perspective company and despite all criticism it has all chances to remain among the leaders of the world resort companies. But still it is very important to perceive the current criticism as the direction where the work of the company has to be focused on. In such a situation it is absolutely necessary to solve the current problems the company faces and is criticized for that would significantly improve its position in the market.
In the same time, it is necessary to take into consideration the threats, which hypothetically can be repeated and can influence the development of the company, its position in the market and the market situation at large. What is meant here are the threats Las Vegas Strands Corp., as any other company, cannot avoid objectively.
At the present moment, Las Vegas Strands Corp. actively develops its strategy of the international market expansion. The company actively uses mergers and acquisitions to enlarge its presence in new markets worldwide. It is important to underline that the company attempts to develop common standards that meet the basic demands concerning the quality of services the company provides for its customers. In this respect, it should be pointed out that Las Vegas Strands Corp. focuses on the implementation of the principle of the total quality, according to which the quality is the dominant concept in the functioning of the company. In actuality, this means that the quality refers not only to the service supplied by the company but it also refers to the work of each member of the personnel of Las Vegas Strands Corp.. In such a way, the quality becomes an essential part of functioning of the company worldwide.
At the same time, the company attempts to avoid radical changes after the acquisitions of or mergers with other companies. In such a situation, it should be said that Las Vegas Strands Corp. does not attempt to implement rebranding immediately after the acquisition, for instance, but instead, it attempts to fully use the potential the acquired brand possesses. Due to this strategy the company maintains the positive performance in new markets where its brand as Las Vegas Strands Corp. may not be so recognizable as local brands acquired by the company.
Thus, taking into consideration all above mentioned, it is possible to conclude that the current situation in the resort industry is characterized by the growing competition. The situation is substantially deteriorated by the negative impact of such factors as natural disasters and terror attacks that decreased the profitability of the resort industry. Nevertheless, if the problems Las Vegas Strands Corp. currently faces can be solved and the potential threat of terror attacks can be effectively prevented then the company has quite good perspectives due to its plans for renewal of its aircrafts and related enlargement of passenger numbers. Anyway, the company has all chances to remain among the leaders but resort industry is characterized by its unpredictable nature since even natural factors may be crucial for the development of the company and revenues from investments that are planned may be too low to let the company remain competitive. Obviously, the current strategy of the company oriented on the international market expansion is correct and justified by the current business environment. On the other hand, it is necessary to take into consideration the negative effects of the current economic recession which force the company to save costs and minimize its expenditures. Moreover, the economic recession limits consistently the opportunities for Las Vegas Strands Corp. to expand its international market presence because the company faces certain financial difficulties because of the substantial decrease in customers’ spending and decline of the resort industry in the USA at large. Nevertheless, the current position of Las Vegas Strands Corp. is not absolutely desperate. As the matter of fact, the current problems may be viewed as short-run problems, while in a long-term perspective, the current strategy of the company is basically correct and it is quite probably that the company will strengthen its position on both national and international markets after the end of the economic crisis.