New Macau Concept: From Gaming to Total Economic Development SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of New Macau Concept: From Gaming to Total Economic Development
In late 2004, Macau, a gaming and tourism Mecca in Asia, caught the attention of investors and casino operators around the world. From a wider perspective, the city's new casinos and resort projects are expected to have a significant spillover effect on the entire economy and society. Presents insights into the history and development of this rapidly emerging gaming market and analyzes the economic opportunities arising from such development. Drawing on the experience of Las Vegas, examines how Macau could create a new concept of gaming packaged in destination entertainment and what changes are expected in its gaming industry as well as its economic and real estate development.
Swot Analysis of "New Macau Concept: From Gaming to Total Economic Development" written by Frederik Pretorius, Mary Ho includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gaming Macau facing as an external strategic factors. Some of the topics covered in New Macau Concept: From Gaming to Total Economic Development case study are - Strategic Management Strategies, Emerging markets, Financial management, Growth strategy, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the New Macau Concept: From Gaming to Total Economic Development casestudy better are - – digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion,
technology disruption, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of New Macau Concept: From Gaming to Total Economic Development
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New Macau Concept: From Gaming to Total Economic Development case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gaming Macau, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gaming Macau 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.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of New Macau Concept: From Gaming to Total Economic Development can be done for the following purposes –
1. Strategic planning using facts provided in New Macau Concept: From Gaming to Total Economic Development case study
2. Improving business portfolio management of Gaming Macau
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gaming Macau
Strengths New Macau Concept: From Gaming to Total Economic Development | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gaming Macau in New Macau Concept: From Gaming to Total Economic Development Harvard Business Review case study are -
Highly skilled collaborators
– Gaming Macau has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in New Macau Concept: From Gaming to Total Economic Development HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Gaming Macau is one of the most innovative firm in sector. Manager in New Macau Concept: From Gaming to Total Economic Development Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Gaming Macau has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study New Macau Concept: From Gaming to Total Economic Development - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Gaming Macau has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in New Macau Concept: From Gaming to Total Economic Development Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Strong track record of project management
– Gaming Macau is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Gaming Macau 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.
High brand equity
– Gaming Macau has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gaming Macau to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– New Macau Concept: From Gaming to Total Economic Development firm has clearly differentiated products in the market place. This has enabled Gaming Macau to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Gaming Macau to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Gaming Macau in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Gaming Macau has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gaming Macau 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.
Learning organization
- Gaming Macau 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 Gaming Macau is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in New Macau Concept: From Gaming to Total Economic Development Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Gaming Macau is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Gaming Macau in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses New Macau Concept: From Gaming to Total Economic Development | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New Macau Concept: From Gaming to Total Economic Development are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the New Macau Concept: From Gaming to Total Economic Development HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Gaming Macau has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Gaming Macau is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Gaming Macau needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gaming Macau to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As New Macau Concept: From Gaming to Total Economic Development HBR case study mentions - Gaming Macau takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Lack of clear differentiation of Gaming Macau products
– To increase the profitability and margins on the products, Gaming Macau needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Gaming Macau has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - New Macau Concept: From Gaming to Total Economic Development should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Gaming Macau has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow decision making process
– As mentioned earlier in the report, Gaming Macau has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Gaming Macau even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study New Macau Concept: From Gaming to Total Economic Development, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Gaming Macau 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.
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 Gaming Macau supply chain. Even after few cautionary changes mentioned in the HBR case study - New Macau Concept: From Gaming to Total Economic Development, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gaming Macau vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study New Macau Concept: From Gaming to Total Economic Development, in the dynamic environment Gaming Macau has struggled to respond to the nimble upstart competition. Gaming Macau has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities New Macau Concept: From Gaming to Total Economic Development | 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 New Macau Concept: From Gaming to Total Economic Development are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gaming Macau is facing challenges because of the dominance of functional experts in the organization. New Macau Concept: From Gaming to Total Economic Development 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gaming Macau 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 Gaming Macau to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Gaming Macau has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study New Macau Concept: From Gaming to Total Economic Development - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gaming Macau to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gaming Macau can use these opportunities to build new business models that can help the communities that Gaming Macau operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Gaming Macau to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gaming Macau can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Gaming Macau can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Gaming Macau can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Gaming Macau can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gaming Macau 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.
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 Gaming Macau in the consumer business. Now Gaming Macau can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Gaming Macau 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.
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. Gaming Macau can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Gaming Macau can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats New Macau Concept: From Gaming to Total Economic Development External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New Macau Concept: From Gaming to Total Economic Development are -
Stagnating economy with rate increase
– Gaming Macau 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.
Consumer confidence and its impact on Gaming Macau 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gaming Macau with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Gaming Macau 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. Gaming Macau can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Gaming Macau in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Gaming Macau
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Gaming Macau.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gaming Macau can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study New Macau Concept: From Gaming to Total Economic Development .
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. Gaming Macau 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Gaming Macau 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
– Gaming Macau 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 Strategy & Execution industry regulations.
Shortening product life cycle
– it is one of the major threat that Gaming Macau is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Gaming Macau.
Technology acceleration in Forth Industrial Revolution
– Gaming Macau has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Gaming Macau needs to keep up with the evolution of technology in the Strategy & Execution 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.
Weighted SWOT Analysis of New Macau Concept: From Gaming to Total Economic Development 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 New Macau Concept: From Gaming to Total Economic Development 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 New Macau Concept: From Gaming to Total Economic Development 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 New Macau Concept: From Gaming to Total Economic Development 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 New Macau Concept: From Gaming to Total Economic Development 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 Gaming Macau needs to make to build a sustainable competitive advantage.
