Swot Analysis of "MGM Mirage's Bid for Mandalay Resort Group (B): 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 Mirage's facing as an external strategic factors. Some of the topics covered in MGM Mirage's Bid for Mandalay Resort Group (B): 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 (B): Communicating During the Merger Process casestudy better are - – talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing commodity prices,
increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, etc
Introduction to SWOT Analysis of MGM Mirage's Bid for Mandalay Resort Group (B): 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 (B): 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 Mirage's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mandalay Mirage's 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 MGM Mirage's Bid for Mandalay Resort Group (B): 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 (B): Communicating During the Merger Process case study
2. Improving business portfolio management of Mandalay Mirage's
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 Mirage's
Strengths MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mandalay Mirage's in MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Mandalay Mirage's 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 Mirage's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Mandalay Mirage's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mandalay Mirage's 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.
High brand equity
– Mandalay Mirage's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mandalay Mirage's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Mandalay Mirage's is one of the most innovative firm in sector. Manager in MGM Mirage's Bid for Mandalay Resort Group (B): 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.
Superior customer experience
– The customer experience strategy of Mandalay Mirage's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Communication field
– Mandalay Mirage's 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 Mandalay Mirage's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Mandalay Mirage's in the sector have low bargaining power. MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mandalay Mirage's to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Mandalay Mirage's 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.
Strong track record of project management
– Mandalay Mirage's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Mandalay Mirage's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process 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.
Ability to recruit top talent
– Mandalay Mirage's is one of the leading recruiters in the industry. Managers in the MGM Mirage's Bid for Mandalay Resort Group (B): 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.
Weaknesses MGM Mirage's Bid for Mandalay Resort Group (B): 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 (B): Communicating During the Merger Process are -
Slow decision making process
– As mentioned earlier in the report, Mandalay Mirage's 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. Mandalay Mirage's 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.
Low market penetration in new markets
– Outside its home market of Mandalay Mirage's, firm in the HBR case study MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Gregory S. Miller, Michael D. Kimbrough suggests that, Mandalay Mirage's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Mandalay Mirage's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mandalay Mirage's 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 (B): 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 (B): 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 Mirage's 's lucrative customers.
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 (B): Communicating During the Merger Process, in the dynamic environment Mandalay Mirage's has struggled to respond to the nimble upstart competition. Mandalay Mirage's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process HBR case study mentions - Mandalay Mirage's 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.
Need for greater diversity
– Mandalay Mirage's 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.
Capital Spending Reduction
– Even during the low interest decade, Mandalay Mirage's 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.
Skills based hiring
– The stress on hiring functional specialists at Mandalay Mirage's 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.
Opportunities MGM Mirage's Bid for Mandalay Resort Group (B): 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 (B): Communicating During the Merger Process are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Mandalay Mirage's 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 Mandalay Mirage's 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.
Developing new processes and practices
– Mandalay Mirage's 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.
Better consumer reach
– The expansion of the 5G network will help Mandalay Mirage's to increase its market reach. Mandalay Mirage's 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.
Building a culture of innovation
– managers at Mandalay Mirage's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mandalay Mirage's is facing challenges because of the dominance of functional experts in the organization. MGM Mirage's Bid for Mandalay Resort Group (B): 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mandalay Mirage's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communication segment, and it will provide faster access to the consumers.
Manufacturing automation
– Mandalay Mirage's can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
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 Mirage's in the consumer business. Now Mandalay Mirage's can target international markets with far fewer capital restrictions requirements than the existing system.
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 Mirage's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Mandalay Mirage's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. MGM Mirage's Bid for Mandalay Resort Group (B): 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.
Loyalty marketing
– Mandalay Mirage's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mandalay Mirage's can use these opportunities to build new business models that can help the communities that Mandalay Mirage's operates in. Secondly it can use opportunities from government spending in Communication sector.
Threats MGM Mirage's Bid for Mandalay Resort Group (B): 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 (B): Communicating During the Merger Process are -
Regulatory challenges
– Mandalay Mirage's 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.
Stagnating economy with rate increase
– Mandalay Mirage's 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.
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 Mirage's needs to understand the core reasons impacting the Communication industry. This will help it in building a better workplace.
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.
Technology acceleration in Forth Industrial Revolution
– Mandalay Mirage's has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Mandalay Mirage's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study MGM Mirage's Bid for Mandalay Resort Group (B): Communicating During the Merger Process, Mandalay Mirage's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
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 Mirage's.
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 Mandalay Mirage's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Mandalay Mirage's
– 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 Mandalay Mirage's.
High dependence on third party suppliers
– Mandalay Mirage's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mandalay Mirage's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Mandalay Mirage's is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Mandalay Mirage's 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 Mirage's can take advantage of this fund but it will also bring new competitors in the Communication industry.
Weighted SWOT Analysis of MGM Mirage's Bid for Mandalay Resort Group (B): 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 (B): 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 (B): 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 (B): 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 (B): 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 Mirage's needs to make to build a sustainable competitive advantage.
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