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Mgm Resorts International
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MGM serves both local and international customers for their range of businesses. The company targets nearby, destination and convenience customers by operating in strategic locations and states
Previously, casinos were known to serve the older generation as their target market. However, the resort style amenities of MGM appeals to the younger generations. The entertainment segment also attracts the younger generation with resort-style complexes, gourmet restaurants, and trendy nightclubs. MGM appeals to both older and young customers.
The MGM attracts five types of customers; recognition seekers, escapist, reward seekers, socializers, and professionals. Escapist seek a getaway to entertainment sections and resorts located in different areas. The reward seekers are driven to visit the business due to their vested interest in rewards that casinos tend to offer. Socializers require a form of engagement where they get to meet different people as a form of distraction out of the ordinary way of life. Professionals make a living out of casinos and pay close attention to what a casino offers.
The casino marketing is directed to individuals who want to have fun and those who are willing to risk their mortgages (Klebanow, 2009)
Importance of identifying target markets to MGM Resorts International.
Not everyone is interested in what a business has to offer. Thus, identifying a target market is important to any business for various reasons. The identification of a target allows a business to have a clear focus as compared to adopting a general approach in a differentiated marketplace. The business can then offer goods and services specifically aligned to customers’ needs. Additionally, the analysis of the market helps the business to determine how much customers are willing to spend on what the business offers. A business can, therefore, plan in advance on what is expected to meet the requirements of the target market. Once a business determines the target customer, it can help to point precisely the markets needs and wants. It also ensures products and services offered to a specific target market are profitable. The business can, therefore, avoid inefficiencies as a lot of resources would be used in trying to reach many individuals who may not be interested in what the business has to offer.
• Reputable brand
• Successful business model
• Geographically concentrated assets
• Low credit rating
• Growing demand for products
• Global reach of business
• Emerging markets
• Fluctuating rates in the international markets
• Government regulations
MGM Resorts international company has an already established brand in the gaming, hospitality and entertainment market: (Owusu, 2014) The Company is one of the world’s leading companies with significant holdings in the industry.
Successful business model
The business owns and operates in different localities and international markets such as in China. The geographically diverse businesses can help the company shield the business from shocks in any one part of their business. Different locations and countries have different characteristics. Therefore, a business lowers risks by investing in different parts that have characteristics do not always match and increase the value of the business over the long-term
Geographically concentrated assets
Most of the MGM businesses are situated in the United States. Being an international business, the level of concentration in one country is very high. This is a challenge as businesses in these areas are likely to face similar problems.
Low corporate credit rating
MGM has a low credit rating compared to most of its peers at B-. (Gore, 2015)The high business dependence on credit also presents a risk associated with high debt to equity.
Growing demand for products
MGM Resorts International has experienced an increase in demand for its products in the recent past. For example, China has provided a large market for the company’s products. Such increases in demand present a good opportunity for the company. Additionally, the increase in the number of retirees is also likely to increase the demand for older aged activities and products such as leisure activities, Casino stocks, and boating. (MGM, 2015)
There are strategic investment opportunities in the emerging markets that have shown diversification benefits and higher expected returns. The demand from these markets presents an opportunity for higher margins and growth for the business.
The company has to ensure that it operates in accordance with the existing regulatory environment. For example, the casino control Act requires companies operating in the line of business to adhere strictly to the requirements. Possible government interventions also increase the risks as the government has a history of making adverse changes to protect consumers and the environment.
There is ease of competitor entry in the hospitality and entertainment market. The ease of entry presents a threat to MGM Resorts International.
Fluctuating rates in the international markets
Foreign investments typically produce returns in local currency. Currency fluctuations in the international markets may negatively impact the total return of investment for the company.
Gore K. (2015) MGM Resorts International “B-“ credit rating.
MGM Resorts International (2015) Company Overview: Our Company:
Owusu T. (2014) Why MGM Resorts International is rising
Klebanow T. (2009) A Psychographic Approach to Customer Segmentation Gaming management portal.
Carolyn Morgan is the author of this paper. A senior editor at Melda Research in nursing term papers if you need a similar paper you can place your order for a custom research paper from pre written essays.
Author is associated with MeldaResearch.Com which is a global Custom Essay Writing and Term Paper Writing Company. If you would like help in Research Papers and Term Paper Help you can visit Custom Writing Service
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