MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process

After MGM Mirage decides to announce publicly its bid for Mandalay Resort Group, both companies face vital decisions about how to communicate with their various stakeholders during the merger negotiations.

Authors :: Gregory S. Miller, Michael D. Kimbrough

Topics :: Communication

Tags :: Communication, Market research, Mergers & acquisitions, Strategic planning, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process" written by Gregory S. Miller, Michael D. Kimbrough includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mandalay Mgm facing as an external strategic factors. Some of the topics covered in MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process case study are - Strategic Management Strategies, Communication, Market research, Mergers & acquisitions, Strategic planning and Communication.

Some of the macro environment factors that can be used to understand the MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process casestudy better are - – cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, wage bills are increasing, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, etc

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Introduction to SWOT Analysis of MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mandalay Mgm, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mandalay Mgm operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process can be done for the following purposes –
1. Strategic planning using facts provided in MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process case study
2. Improving business portfolio management of Mandalay Mgm
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mandalay Mgm

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Strengths MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Mandalay Mgm in MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process Harvard Business Review case study are -

High switching costs

– The high switching costs that Mandalay Mgm has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Learning organization

- Mandalay Mgm is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Mandalay Mgm is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Analytics focus

– Mandalay Mgm is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Gregory S. Miller, Michael D. Kimbrough can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Low bargaining power of suppliers

– Suppliers of Mandalay Mgm in the sector have low bargaining power. MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mandalay Mgm to manage not only supply disruptions but also source products at highly competitive prices.

Successful track record of launching new products

– Mandalay Mgm has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mandalay Mgm has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Ability to recruit top talent

– Mandalay Mgm is one of the leading recruiters in the industry. Managers in the MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Innovation driven organization

– Mandalay Mgm is one of the most innovative firm in sector. Manager in MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Digital Transformation in Communication segment

- digital transformation varies from industry to industry. For Mandalay Mgm digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mandalay Mgm has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Superior customer experience

– The customer experience strategy of Mandalay Mgm in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Sustainable margins compare to other players in Communication industry

– MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process firm has clearly differentiated products in the market place. This has enabled Mandalay Mgm to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Mandalay Mgm to invest into research and development (R&D) and innovation.

Diverse revenue streams

– Mandalay Mgm is present in almost all the verticals within the industry. This has provided firm in MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Cross disciplinary teams

– Horizontal connected teams at the Mandalay Mgm are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

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Weaknesses MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process are -

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mandalay Mgm supply chain. Even after few cautionary changes mentioned in the HBR case study - MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mandalay Mgm vulnerable to further global disruptions in South East Asia.

Workers concerns about automation

– As automation is fast increasing in the segment, Mandalay Mgm needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process, in the dynamic environment Mandalay Mgm has struggled to respond to the nimble upstart competition. Mandalay Mgm has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mandalay Mgm is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

High operating costs

– Compare to the competitors, firm in the HBR case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mandalay Mgm 's lucrative customers.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process, is just above the industry average. Mandalay Mgm needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Low market penetration in new markets

– Outside its home market of Mandalay Mgm, firm in the HBR case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Aligning sales with marketing

– It come across in the case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process can leverage the sales team experience to cultivate customer relationships as Mandalay Mgm is planning to shift buying processes online.

Need for greater diversity

– Mandalay Mgm has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

High bargaining power of channel partners

– Because of the regulatory requirements, Gregory S. Miller, Michael D. Kimbrough suggests that, Mandalay Mgm is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Interest costs

– Compare to the competition, Mandalay Mgm has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

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Opportunities MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities highlighted in the Harvard Business Review case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process are -

Building a culture of innovation

– managers at Mandalay Mgm can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Communication segment.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Mandalay Mgm can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Buying journey improvements

– Mandalay Mgm can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Developing new processes and practices

– Mandalay Mgm can develop new processes and procedures in Communication industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Loyalty marketing

– Mandalay Mgm has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Mandalay Mgm is facing challenges because of the dominance of functional experts in the organization. MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Mandalay Mgm can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Mandalay Mgm can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mandalay Mgm in the consumer business. Now Mandalay Mgm can target international markets with far fewer capital restrictions requirements than the existing system.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mandalay Mgm to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Mandalay Mgm to hire the very best people irrespective of their geographical location.

Creating value in data economy

– The success of analytics program of Mandalay Mgm has opened avenues for new revenue streams for the organization in the industry. This can help Mandalay Mgm to build a more holistic ecosystem as suggested in the MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process case study. Mandalay Mgm can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Learning at scale

– Online learning technologies has now opened space for Mandalay Mgm to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Mandalay Mgm can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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Threats MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process are -

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mandalay Mgm with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mandalay Mgm in the Communication sector and impact the bottomline of the organization.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Mandalay Mgm needs to understand the core reasons impacting the Communication industry. This will help it in building a better workplace.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Mandalay Mgm will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Consumer confidence and its impact on Mandalay Mgm demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Environmental challenges

– Mandalay Mgm needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mandalay Mgm can take advantage of this fund but it will also bring new competitors in the Communication industry.

Shortening product life cycle

– it is one of the major threat that Mandalay Mgm is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Easy access to finance

– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mandalay Mgm can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Regulatory challenges

– Mandalay Mgm needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Communication industry regulations.

Technology acceleration in Forth Industrial Revolution

– Mandalay Mgm has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Mandalay Mgm needs to keep up with the evolution of technology in the Communication sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mandalay Mgm.

Stagnating economy with rate increase

– Mandalay Mgm can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

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Weighted SWOT Analysis of MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of MGM Mirage's Bid for Mandalay Resort Group (A): Communicating During the Merger Process is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mandalay Mgm needs to make to build a sustainable competitive advantage.

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