Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel

The MGM Grand Hotel in Las Vegas had detailed information on loyal gaming customers, but could its information systems also be tailored to nongaming customers? As the nongaming business sectors became increasingly profitable both at the MGM Grand and in Las Vegas generally, understanding the nongaming customers appeared to be of critical importance to the continuing growth of the resort.

Authors :: Dennis Campbell, F. Asis Martinez-Jerez, Marc J. Epstein, Joshua Bellin

Topics :: Technology & Operations

Tags :: Customers, Financial analysis, IT, Sales, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel" written by Dennis Campbell, F. Asis Martinez-Jerez, Marc J. Epstein, Joshua Bellin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nongaming Mgm facing as an external strategic factors. Some of the topics covered in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel case study are - Strategic Management Strategies, Customers, Financial analysis, IT, Sales and Technology & Operations.

Some of the macro environment factors that can be used to understand the Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel casestudy better are - – increasing energy prices, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, wage bills are increasing, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, geopolitical disruptions, etc

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Introduction to SWOT Analysis of Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nongaming Mgm, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nongaming 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel can be done for the following purposes –
1. Strategic planning using facts provided in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel case study
2. Improving business portfolio management of Nongaming Mgm
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nongaming Mgm

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Strengths Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Nongaming Mgm in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel Harvard Business Review case study are -

Analytics focus

– Nongaming 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 Dennis Campbell, F. Asis Martinez-Jerez, Marc J. Epstein, Joshua Bellin 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.

Innovation driven organization

– Nongaming Mgm is one of the most innovative firm in sector. Manager in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 Technology & Operations segment

- digital transformation varies from industry to industry. For Nongaming Mgm digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nongaming 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.

Diverse revenue streams

– Nongaming Mgm is present in almost all the verticals within the industry. This has provided firm in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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.

Learning organization

- Nongaming 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 Nongaming Mgm is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Highly skilled collaborators

– Nongaming Mgm 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Training and development

– Nongaming Mgm has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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.

Sustainable margins compare to other players in Technology & Operations industry

– Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel firm has clearly differentiated products in the market place. This has enabled Nongaming Mgm to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Nongaming Mgm to invest into research and development (R&D) and innovation.

Ability to recruit top talent

– Nongaming Mgm is one of the leading recruiters in the industry. Managers in the Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Strong track record of project management

– Nongaming Mgm is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Superior customer experience

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

High switching costs

– The high switching costs that Nongaming 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.

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Weaknesses Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nongaming Mgm is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 dependence on star products

– The top 2 products and services of the firm as mentioned in the Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 Nongaming Mgm has relatively successful track record of launching new products.

High cash cycle compare to competitors

Nongaming Mgm has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Increasing silos among functional specialists

– The organizational structure of Nongaming Mgm is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Nongaming Mgm needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nongaming Mgm to focus more on services rather than just following the product oriented approach.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel, it seems that the employees of Nongaming Mgm don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

High bargaining power of channel partners

– Because of the regulatory requirements, Dennis Campbell, F. Asis Martinez-Jerez, Marc J. Epstein, Joshua Bellin suggests that, Nongaming 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.

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 Nongaming Mgm supply chain. Even after few cautionary changes mentioned in the HBR case study - Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nongaming Mgm vulnerable to further global disruptions in South East Asia.

No frontier risks strategy

– After analyzing the HBR case study Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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, Nongaming 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.

Capital Spending Reduction

– Even during the low interest decade, Nongaming Mgm has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

Products dominated business model

– Even though Nongaming Mgm 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 - Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel should strive to include more intangible value offerings along with its core products and services.

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Opportunities Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel | 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel are -

Leveraging digital technologies

– Nongaming Mgm 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.

Reforming the budgeting process

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

Low interest rates

– Even though inflation is raising its head in most developed economies, Nongaming 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.

Learning at scale

– Online learning technologies has now opened space for Nongaming 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.

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 Nongaming Mgm in the consumer business. Now Nongaming Mgm can target international markets with far fewer capital restrictions requirements than the existing system.

Building a culture of innovation

– managers at Nongaming 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 Technology & Operations segment.

Manufacturing automation

– Nongaming Mgm can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.

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 Nongaming Mgm 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.

Better consumer reach

– The expansion of the 5G network will help Nongaming Mgm to increase its market reach. Nongaming Mgm will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Nongaming Mgm can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Nongaming Mgm is facing challenges because of the dominance of functional experts in the organization. Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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.

Using analytics as competitive advantage

– Nongaming Mgm 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nongaming Mgm to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nongaming Mgm 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. Nongaming Mgm 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.

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Threats Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel are -

High dependence on third party suppliers

– Nongaming Mgm high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Regulatory challenges

– Nongaming 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 Technology & Operations industry regulations.

Easy access to finance

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

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Consumer confidence and its impact on Nongaming 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.

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.

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 Nongaming Mgm in the Technology & Operations sector and impact the bottomline of the organization.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Nongaming Mgm business can come under increasing regulations regarding data privacy, data security, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Nongaming Mgm 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel .

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 Nongaming Mgm.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel, Nongaming Mgm may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Nongaming Mgm in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Technology acceleration in Forth Industrial Revolution

– Nongaming Mgm has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Nongaming Mgm needs to keep up with the evolution of technology in the Technology & Operations 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.

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Weighted SWOT Analysis of Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 Slots, Tables, and All that Jazz: Managing Customer Profitability at the MGM Grand Hotel 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 Nongaming Mgm needs to make to build a sustainable competitive advantage.

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