Today’s presentation will be about the analysis of Monarch Casino & Resort, Inc. (MCRI) marketing function strategies. I will go about the discussion of MCRI’s internal and external environment. This helped enumerate MCRI’s strengths and weaknesses. This also aids in identifying the opportunities and threats that could significantly affect the future plan and profitability of the organization. An industry analysis has also been conducted paying close attention to the competitors of the company as well as the trends in the market. A market analysis was presented to give a summary of the condition affecting the industry and present an outlook that would project the future of MCRI. Finally, this paper will conclude with the recommendations suggested for MCRI as supported by different tools and matrices.
Background: Monarch Casino & Resort, Inc. (MCRI) was incorporated in 1993 with several subsidiaries operating under its umbrella. Among them includes Atlantis Casino Resort Spa in Reno, Nevada and Monarch Black Hawk Casino located at Denver, Colorado. In a report presented by Monarch Casino and Resort, Inc. in April of this year, they said that the net income of MCRI continues to drop from last year’s performance. During the first quarter of this year, net income was down by 0.2%. This amounts to a 14.7% loss according to the total adjusted EBITDA. Casino sales was down by a significant percentage and MCRI operating expenses has gone higher according to MCRI’s CEO John Fahari.
- Incorporated in 1993.
- Has two subsidiaries -- Atlantis Casino Resort Spa in Reno, Nevada and Monarch Black Hawk Casino located at Denver, Colorado.
- Has documented significant losses from 2013’s performance.
- Significant drop of 0.2% in net revenue resulting to a total adjust EBITDA loss of 14.7% in the first quarter of 2014.
Internal Analysis: As mentioned earlier, MCRI has two subsidiaries. These include the Atlantis Casino, Resort and Spa and the Black Hawk Casino. These two combines to produce two of the best hotel and casino in the US. The Atlantis has facilities and amenities that are highly recognized by reputable business organizations in the world. In fact, the Atlantis was named as one of Forbe’s Most Truthworthy Companies in the World. It is also given a Four Diamond Luxury Award recognition for it elegant and exquisite facilities and excellent service quality. The Black Hawk, on the other hand is currently under renovation to meet the same quality as the Atlantis. This facilitates for a strong product and service portfolio and a strong brand name which is one of MCRI’s identified strengths. Another strength of the MCRI is the highly diverse yet highly competent workforce. Presently, MCRI has over 2,100 employees. The company accredits their workforce for supplying excellent service quality that is recognized by Tripadvisor and other premier institution in the hotel and entertainment industry.
Nevertheless, MCRI is weakened by two significant factors. These refers to this weak financial positioning and process-oriented R&D. the significant drop in revenue of the organization leaves the company with the burden of having to incur the losses which affects daily business operation and progress in their plans. In addition, the process-oriented approach currently used by R&D department of MCRI cripples innovative ideas that could help augment the losses. It also fails to address the trends in the market. The R&D is too meticulous at following a rigid framework that consumes enormous amount of time. This time could wisely be spent at trying to improve the system and the business process that restricts the growth of the company.
- Strengths: (1) Strong product & service portfolio
- amenities and facilities
- wide options of restaurants
- variety of gaming options in casino
(2) Recognition from reputable business organizations
- Forbes – Most Trustworthy Companies in the world
- Tripadvisor - Excellent Service Quality
- Four Diamond Luxury Award for the Atlantis
(3) Diverse workforce
- 2,100 employees – highly diverse, provides excellent customer service
- Weakness: (1) Weak Financial Position
- Decline in the Company’s net revenue
- Causing delays in plan implementation and affecting operation
(2) Slow, process-oriented R&D
- Adapts a rigid framework for R&D
- Delays innovation and fails to meet the trends in the market
External Analysis: After the recent recession, the US economy proves to be making progress. While the progress is relatively slow compared to other countries, the growth has been steady. The recovering economy proves conducive for business. Employment rate is up which mean that people’s spending capacity has improved. Now they have more money to spend on leisure and recreation. In addition, the socio-cultural environment has been surveyed to have shown great interest to gambling and casino gaming. In fact, a survey revealed that Americans now recognize casino betting as a legitimate entertainment and recreation activity. More so, many regular households are going to casinos now than ever before. Casinos are no longer isolated for the enjoyment of the rich and famous but has expand to a new market segment. Technology has also been on the roll. New applications and games had been created. Advertising has been geared and used for the benefits of many businesses. All these proves to open wide opportunities for MCRI to take advantage.
On the other hand, the transition brought by the election can pose a potential threat to sustainability of many businesses not only MCRI. With new officials taking offices, changes are inevitable. These changes can affect the existing regulations on how organizations transact business. The intense government regulation on casino operators including provision relating to taxation is causing problems for casino operator like MCRI. Finally, the Colorado Gaming Association’s campaign to expand the racing facility in Colorado can cause a market split for the Black Hawk Casino which could significantly business.
- Opportunities: (1) Supportive socio-cultural environment
- Recognition of the community to betting and casino activities as a legitimate leisure and entertainment activity
- Creation of new market segment – household and middle class sector are going to casino to play
(2) Technological advancement
- New platform for games and applications
- New platform for marketing
(3) Recovering Economy
- GDP and Employment rate is high – improves consumer’s purchasing power
- Threats: (1) Colorado Gaming Association
- Expansion of racing facility in Colorado will divide the market
(2) Upcoming political transition
- Disrupts continuity and sustainability program with possible amendments to existing policies
(3) Intense Government Regulation
- High taxes and strict registration requirements for casino operators