Las Vegas Sands Corp.: Pricing Game in Vegas SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Las Vegas Sands Corp.: Pricing Game in Vegas
In 2016, MGM Resorts International announced it would break with the long-standing tradition of providing free parking on the Las Vegas Strip. Other Las Vegas resort companies, including Caesars Entertainment and Wynn Resorts, soon followed suit. Las Vegas Sands Corp. owned the Venetian Resort Hotel Casino, the Palazzo, and the Sands Expo and Convention Center, and had no plans to charge for parking. As more hotels and casinos chose to implement paid parking on the Las Vegas Strip, the president and chief operating officer of Las Vegas Sands Corp. properties faced a decision: should the Las Vegas Sands Corp. properties continue to offer free self-parking and use it as a differentiating marketing tactic, or should it follow the trend of its competitors and generate additional income by introducing parking fee? Seok Woo Kwon is affiliated with University of Calgary.
Swot Analysis of "Las Vegas Sands Corp.: Pricing Game in Vegas" written by Seok-Woo Kwon, Won-Yong Oh, Brooke Miskiman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vegas Las facing as an external strategic factors. Some of the topics covered in Las Vegas Sands Corp.: Pricing Game in Vegas case study are - Strategic Management Strategies, Pricing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Las Vegas Sands Corp.: Pricing Game in Vegas casestudy better are - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Las Vegas Sands Corp.: Pricing Game in Vegas
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Las Vegas Sands Corp.: Pricing Game in Vegas case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vegas Las, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vegas Las 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 Las Vegas Sands Corp.: Pricing Game in Vegas can be done for the following purposes –
1. Strategic planning using facts provided in Las Vegas Sands Corp.: Pricing Game in Vegas case study
2. Improving business portfolio management of Vegas Las
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Vegas Las
Strengths Las Vegas Sands Corp.: Pricing Game in Vegas | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vegas Las in Las Vegas Sands Corp.: Pricing Game in Vegas Harvard Business Review case study are -
Effective Research and Development (R&D)
– Vegas Las 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 Las Vegas Sands Corp.: Pricing Game in Vegas - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Vegas Las is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Vegas Las 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 Seok-Woo Kwon, Won-Yong Oh, Brooke Miskiman 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.
Highly skilled collaborators
– Vegas Las 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 Las Vegas Sands Corp.: Pricing Game in Vegas HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Vegas Las 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
– Vegas Las has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vegas Las to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Vegas Las 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.
Low bargaining power of suppliers
– Suppliers of Vegas Las in the sector have low bargaining power. Las Vegas Sands Corp.: Pricing Game in Vegas has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vegas Las to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Vegas Las has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Las Vegas Sands Corp.: Pricing Game in Vegas 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.
Diverse revenue streams
– Vegas Las is present in almost all the verticals within the industry. This has provided firm in Las Vegas Sands Corp.: Pricing Game in Vegas 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.
Organizational Resilience of Vegas Las
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vegas Las does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Vegas Las digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vegas Las 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.
Weaknesses Las Vegas Sands Corp.: Pricing Game in Vegas | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Las Vegas Sands Corp.: Pricing Game in Vegas are -
High bargaining power of channel partners
– Because of the regulatory requirements, Seok-Woo Kwon, Won-Yong Oh, Brooke Miskiman suggests that, Vegas Las 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.
Aligning sales with marketing
– It come across in the case study Las Vegas Sands Corp.: Pricing Game in Vegas 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 Las Vegas Sands Corp.: Pricing Game in Vegas can leverage the sales team experience to cultivate customer relationships as Vegas Las is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Vegas Las, firm in the HBR case study Las Vegas Sands Corp.: Pricing Game in Vegas needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Las Vegas Sands Corp.: Pricing Game in Vegas HBR case study mentions - Vegas Las 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Las Vegas Sands Corp.: Pricing Game in Vegas, in the dynamic environment Vegas Las has struggled to respond to the nimble upstart competition. Vegas Las has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Vegas Las 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. Vegas Las 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.
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 Vegas Las supply chain. Even after few cautionary changes mentioned in the HBR case study - Las Vegas Sands Corp.: Pricing Game in Vegas, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vegas Las vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Vegas Las products
– To increase the profitability and margins on the products, Vegas Las needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Las Vegas Sands Corp.: Pricing Game in Vegas 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 Vegas Las 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Vegas Las is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Vegas Las needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vegas Las 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 Las Vegas Sands Corp.: Pricing Game in Vegas, it seems that the employees of Vegas Las 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.
Opportunities Las Vegas Sands Corp.: Pricing Game in Vegas | 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 Las Vegas Sands Corp.: Pricing Game in Vegas are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Vegas Las can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Vegas Las has opened avenues for new revenue streams for the organization in the industry. This can help Vegas Las to build a more holistic ecosystem as suggested in the Las Vegas Sands Corp.: Pricing Game in Vegas case study. Vegas Las can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Vegas Las can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Vegas Las 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.
Better consumer reach
– The expansion of the 5G network will help Vegas Las to increase its market reach. Vegas Las 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vegas Las in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Vegas Las 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 Las Vegas Sands Corp.: Pricing Game in Vegas - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vegas Las to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Vegas Las in the consumer business. Now Vegas Las can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Vegas Las can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Vegas Las can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Developing new processes and practices
– Vegas Las can develop new processes and procedures in Sales & Marketing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vegas Las is facing challenges because of the dominance of functional experts in the organization. Las Vegas Sands Corp.: Pricing Game in Vegas 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 Vegas Las 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 Vegas Las to hire the very best people irrespective of their geographical location.
Threats Las Vegas Sands Corp.: Pricing Game in Vegas External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Las Vegas Sands Corp.: Pricing Game in Vegas are -
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. Vegas Las needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Vegas Las.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Las Vegas Sands Corp.: Pricing Game in Vegas, Vegas Las may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Vegas Las can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Vegas Las in the Sales & Marketing industry. The Sales & Marketing 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.
Shortening product life cycle
– it is one of the major threat that Vegas Las is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Vegas Las 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.
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.
Environmental challenges
– Vegas Las 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. Vegas Las can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vegas Las with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Vegas Las has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Vegas Las needs to keep up with the evolution of technology in the Sales & Marketing 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.
Increasing wage structure of Vegas Las
– 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 Vegas Las.
Regulatory challenges
– Vegas Las 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 Sales & Marketing industry regulations.
Weighted SWOT Analysis of Las Vegas Sands Corp.: Pricing Game in Vegas 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 Las Vegas Sands Corp.: Pricing Game in Vegas 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 Las Vegas Sands Corp.: Pricing Game in Vegas 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 Las Vegas Sands Corp.: Pricing Game in Vegas 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 Las Vegas Sands Corp.: Pricing Game in Vegas 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 Vegas Las needs to make to build a sustainable competitive advantage.