Sands Casino Macau: A Case Study
Introduction
Macau is considered as the Las Vegas of Asia. The Casino industry in Macau is a big industry and it continues to grow. In the third quarter of 2006 Macau had become the world’s biggest gaming center with gross revenues from gaming exceeding those of Las Vegas by US$433 million (Gasper 2007). The Casino industry is truly flourishing in Macau. As a result, more and more people are attracted to work in Casinos.
Research Method
Survey
In order to clearly illustrate the effectiveness of Sands Macau’s strategies, the researcher intends to employ the descriptive type of research. The researcher will make use of survey questionnaire in order to find out the impact of the company’s strategies in the customers. The survey will present useful information from the respondents regarding the topics.
The Respondents
The researcher will recruit 50 respondents in the study. The researcher will obtain from Travel Agencies lists of tourists from Hong Kong who visited Macau from 2007 to 2008. These tourists will be contacted through electronic mail.
Secondary Research
The researcher conducted a secondary research in order to gather information about the topic. The research conducted on the casino industry in Macau and the other resource materials such as books, magazines, journal articles and internet resources were used to form the report. Using the said resources, the researcher was able to form an idea regarding the current state of the casino industry in Macau as well as the future prospects of the industry. The researcher gathered information from the following resources:
Search Engines
The internet played a vital role in the research. The researcher used the internet to gather information about the casino industry in Macau, the different hotels and the strategies that each chain group employs. The researcher made used of the following search engines wwww.google.com, www. msn.com and www.yahoo.com. Wikipedia, an online encyclopedia was also consulted.
Published Materials
The researcher also used a wide range of research materials. The materials used were books, journals, magazines and newspapers. These resources have helped the researcher in accomplishing the paper.
Mode of Data Collection
Survey
To facilitate fast and efficient data collection, and in order to reach respondents who are hard to meet personally due to their busy schedules and because of geographical constraints, the researcher will send the survey questionnaires through electronic mail. This can save both time and money. The questionnaire will be sent to each individual in the sample by electronic mail with a request to be completed and then returned in the given date. The questionnaires will also be collected in a similar manner. The advantages of this approach are that it is relatively inexpensive and it can be accomplished by the researcher alone. It also allows the researcher to have access to samples that might be hard to reach in person or by telephones, and it permits the respondents to take sufficient time to give thoughtful answers to the questions asked. The data that will be gathered will be organized and presented in a systematic manner to be able to draw valid and accurate conclusions.
Survey Questionnaire
1. How many times have you visited Macau?
_Once
_2 times
_3 times
_4 times
_5 times and more
2. What is the nature of your trip to Macau?
_Business Trip
_Visiting Friends and Relatives
_Educational Tour
_Leisure/Sight-seeing
3. Have you been to Sands Macau?
_Yes
_No
4. How did you know about Sands Macau?
_Advertisements (TV, Radio, Prints)
_Internet
_Referred by a friend/family (word of mouth)
_Travel Agency
_Others (Please specify)
5. Rate your stay in Sands Macau.
_Excellent
_Very Satisfactory
_Satisfactory
_Poor
6. What do you think is/are the main advantage/advantages of Sands Macau over its competitors?
_Effective Marketing and Advertising
_Top of the Line Amenities and Facilities
_Accessibility
_Affordable and Flexible Rates
_Quality Service
_Others (Please specify)
7. Will you recommend Sands Macau to your family and friends?
_Yes
_No
Macau: Asia’s Gambling Capital
Macau represents a mixture of eastern and western cultures. Macau represents one of the first and most enduring encounters between China and Europe. Throughout the years, Macau has undergone big changes until it reached its present status as the gambling capital of the East.
In 2002, the government of Macau made a decision that was to have enormous consequences for the former Portuguese colony. Macau is a well-established gambling destination and the only place in China where the pastime is legal. In 2002, the government decided to put an end to a 45-year gambling monopoly held by Hong Kong entrepreneur, Stanley Ho, and open up the lucrative industry to the world.
This move has opened doors of opportunity for Western Gambling tycoons who wasted no time to enter the Macau gambling industry. After the government of Macau liberalised the gaming market in 2002, it awarded licenses to three consortia: Sociedade de Jogos de Macau (linked to Ho), Wynn Resorts, Galaxy Casino Company and Las Vegas Sands Corporation (LVSC). Less than two years later, Sheldon Adelson--the man behind the famous Venetian complex in Las Vegas and the chairman of LVSC--opened the Sands Macau Casino. The territory's first Western-style casino, the Sands boasts 438 gambling tables, 921 slot machines (known locally as hungry tigers), the world's largest chandelier and, like almost all the casinos, 24-hour opening. This marble and neon edifice attracts around 20,000 customers a day (Hoare 2006).
Las Vegas Sands Corporation
Las Vegas Sands Corp. and its subsidiaries own and operate The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, The Sands Expo and Convention Center and The Congress Center in Las Vegas, Nevada, and the Sands Macau and The Venetian Macau Resort Hotel in Macau, China (Las Vegas Sands Corp 2007).
Sands Casino Macau
Sands Macau, the first Las Vegas-style casino in the territory is owned and operated by Las Vegas Sands Macau Corporation. The Sands Macau can be found near the Macau-Hong Kong Ferry Terminal on a waterfront parcel centrally located between the Gonbei border gate and the central business district. Sands Macau is able to access a large customer base because of its strategic position. Because of its location, Sands Macau can attract Macau’s visitors who enter the territory by ferry. The visitor numbers entering Macau by ferry reached 9 million in 2007, providing the Casino with a lucrative customer base. The Sands Macao includes approximately 229,000 square feet of gaming space and currently has approximately 630 table games and 1,350 slot machines or similar electronic gaming devices. The Sands Macao also includes several restaurants, a spacious Paiza Club offering services and amenities to premium customers, luxurious VIP suites and spa facilities, private VIP gaming room facilities, a theater and other high-end services and amenities.
The Sands Casino in Macau was the first substantial casino in Asia when it opened in May 2004. Built in the style of the well-known leisure centers of Las Vegas in the United States, Sands casino comprises a leisure complex, various restaurants and bars and plentiful gambling opportunities within a stunning architectural setting (Las Vegas Sands Corporation 2006).
Sands Macau is the first American-operated gaming facility to open in Macau, Special Administrative Region of The People’s Republic of China. The region’s economy has been growing at an impressive rate. Travel rates have exploded in recent years and indications suggest that these numbers will continue to rise. Sands Macau is the first property in Macau from developer Las Vegas Sands Corporation and was designed to appeal to the growing tourism market in the territory, recreating the glitter and glamour of Las Vegas while adding the unique oriental atmosphere in keeping with the culture of the region (Las Vegas Sands Corporation 2005).
Industry Analysis
Macau is regarded as the largest and fastest-growing gaming market in the world and benefits from being the only market in China to offer legalized casino gaming. In 2002, the government of Macau decided to put a stop to the monopolistic form of its gaming industry. It announced its plan to open up the gaming industry and subsequently announced three winners out of eighteen candidates bidding for new gaming licenses. The winners were:
1. Sociedad de Jogoes de Macau (SJM), a wholly-owned subsidiary of the former monopolist.
2. Wynn Resorts from the United States
3. Galaxy, a joint venture of a Hong Kong firm, Galaxy, and the Venetian from the United States.
As a result, the monopolistic structure of the industry, in existence for more than sixty years formally terminated. This move was partly due to the economic instability. Looking at the period before the changes in the industry structure, it was observed that whenever there were crucial policy changes by either Hong or the Mainland government, Macao’s casino industry would always simply react passively by either taking advantage or shouldering part of the costs brought about by the changes. Macao’s casino industry was also vulnerable to the changes in the economic policy that Hong Kong or the mainland introduce. For example when the Hong Kong community proposed to the Hong Kong SAR government in 1999 to explore the possibility of legalizing casino gaming as a way to cope with structural changes and the downturn of the Hong Kong economy since 1997, Macao’s community and gaming industry were shaken. The sense of anxiety flourished because Hong Kong had long been the prime source of customers of Macao’s casino industry (Siu 2006).
Sands Macau, touted as the first Las Vegas-style casino opened in 2004. In 2007, gaming revenues in Macau reached a record $10.3 billion, a 46 percent increase over 2006. Visits also increased up to 22.7 percent in 2007. According to Macau government statistics, during 2007, 21.4 percent of visitors traveling to Macau stayed overnight in hotels and guestrooms and, for those who stayed overnight in hotels and guestrooms, the average length of stay was between 1 and 2 nights. This figures are expected to increase in the coming years as casinos expand their gaming and non-gaming amenities including retail, entertainment, meeting and convention facility offerings, and the addition of deluxe hotel resort accommodations in Macau.
Customer Analysis
Majority, if not all, of customers that visit Macau’s casinos are tourists. Approximately 1.0 billion people are estimated to live within a three-hour flight from Macao and approximately 3.0 billion people are estimated to live within a five-hour flight from Macao. According to Macau government statistics, 85.4 percent of the tourist who visited Macau in 2007 came from Hong Kong or mainland China and the dominant feeder markets to Macau have been, and continue to be, Hong Kong and China. Although the total number of visitors from Hong Kong continues to grow, that market has shrunk as a percentage of the total visitor distribution from 44.2 percent in 2002 to 30.3 percent in 2007, while visitors from mainland China made up 55.1 percent of total visitors to Macau in 2007. Until recently, mainland Chinese were permitted to visit Macao only as part of a tour group. Now that these travel restrictions have eased for mainland Chinese from most urban centers and economically developed regions, individual travel to Macao is expected to increase, generating increased demand for casino offerings (Las Vegas Sands Corporation 2007).
Gaming customers from HongKong, southeast China, Taiwan and other locations in Asia can reach Macau in a relatively short period of time, using a variety of methods of transportation, and visitors from more distant locations in Asia can take advantage of short travel times by air to Macau, Zhuhai, Shenzhen, Guangzhou or to Hong Kong (followed by a road, ferry or helicopter trip to Macau). In addition, numerous carriers fly directly into Macau International Airport from many major cities in Asia. The relatively easy access from major population centers promotes Macau as a popular gaming destination in Asia (Las Vegas Sands Corporation 2007).
Competitor Analysis
Gaming in Macau is administered through government-sanctioned concessions awarded to three different concessionaires and three sub concessionaires, of which Sands is one. The Macau government is precluded by contract form granting any additional gaming concessions until 2009. In addition, the current laws only permit the Macau government to grant additional gaming concessions before 2009. If the Macao government were to allow additional competitors to operate in Macao through the grant of additional concessions or sub concessions, Sands Macau would face additional competition, which could have a material adverse effect on our financial condition, results of operations or cash flows (Las Vegas Sands Corporation 2007).
1. SJM
SJM, controlled by Stanley Ho, holds one of the three concessions and currently operates 19 facilities throughout Macao. Historically, SJM was the only gaming operator in Macao, with over 40 years of operating experience in Macao. Many of its 19 casinos are relatively small facilities that are offered as amenities in hotels; however, a number are large operations enjoying significant recognition by gaming customers in the marketplace. SJM was obligated to invest at least approximately 4.7 billion patacas (approximately $584.6 million at exchange rates in effect on December 31, 2007) by March 31, 2009, under its concession agreement with the government of Macao. SJM’s projects include the Grand Lisboa; the Fisherman’s Wharf entertainment complex, which opened in December 2005; and other projects. In addition, MGM MIRAGE has entered into a joint venture agreement with Stanley Ho’s daughter, Pansy Ho Chiu-king, to develop, build and operate two major hotel/casino resorts in Macao. In April 2005,MGMGrand Paradise Limited obtained a subconcession allowing it to conduct gaming operations in Macao. The MGM Grand Macau opened in December 2007 and features approximately 600 rooms, 375 table games, 900 slot machines, restaurants and entertainment amenities (Las Vegas Sands Corporation 2007).
2. Galaxy Casino Company Limited
Galaxy holds a concession and has the ability to operate casino properties independent of us. Galaxy was obligated to invest at least 4.4 billion patacas (approximately $547.3 million at exchange rates in effect on December 31, 2007) by June 2012 under its concession agreement with the government of Macao. Galaxy currently operates five casinos in Macao, including StarWorld Hotel, which opened in October 2006 and has over 500 hotel rooms and a 140,000 square foot gaming floor with approximately 260 table games and 500 slot machines (Las Vegas Sands Corporation 2007).
3. Wynn Resorts S. A.
Wynn Macau, a subsidiary of Wynn Resorts Limited, holds the third concession. Wynn Macau opened in September 2006 and expanded the property in late 2007. Wynn Macau now includes an approximately 600-room hotel, a casino and other non-gaming amenities. In 2006,Wynn Macau sold its subconcession right under its gaming concession to an affiliate of Publishing and Broadcasting Limited (“PBL”). The subconcession right permitted the PBL affiliate to receive a gaming subconcession from the Macao government. In May 2007, a PBL affiliate opened the Crown Macau, which includes an approximately 216-room hotel, a casino and other non-gaming amenities (Las Vegas Sands Corporation 2007).
PEST Analysis
A PEST analysis looks at the Political, Economic, Social and Technological drivers of a particular industry. PEST are external factors that must be analyzed and understood in order for an organization to succeed. The PEST analysis focuses on the external forces that affects the organization. It is most useful when used together with other tools such as the SWOT analysis.
Political Factors
Political factors play an important role in shaping the businesses and operations of Sands Macau. The casino is subject to local laws and regulations. Changes in the laws and regulations may affect the business. In Macau, tax laws and regulations may be subject to amendment or different interpretation and implementation, thereby affecting the profitability of Sands Macau after tax.
The activities of Sands Macau are subject to administrative review and approval by various government agencies. Sands Macau’s sub concession arrangements with Galaxy can be terminated by the government. In the event that the sub concession is terminated, Sands Macau would be prohibited from conducting gaming operations.
Economic Factors
Significant number of Sands Macau’s consumers come from China, general economic conditions and policies in China could have significant impact on the financial prospects of the casino. Any slowdown in economic growth or reversal of China’s current policies of liberalizing restrictions on travel and currency movements could adversely impact the number of visitors from China to Macau as well as the amounts they are willing to spend at Sands Macau.
The revenues of Sands Macau are dominated in patacas, the legal currency pf Macau, and Hong Kong dollars. Although currently permitted, there is no assurance that patacas will continue to be freely exchangeable into US dollars. Also, because the currency market for patacas is relatively small and underdeveloped, the casino’s ability to convert large among of patacas into US dollars over a relatively short period may be limited.
Sociological Factors
The government requires casinos and other establishments to employ locals. The casino relies heavily on the local labor market. The strength of the casino’s labor force is affected by factors such as the education and skill levels of the labor force. The increase mobility of mainland China and Hong Kong residents affect the strength of Macau’s tourism. It is expected that the wealthier Chinese middle class will become more mobile and will be encouraged to visit Macau because of less onerous travel restrictions, greater ability of Chinese citizens to bring ‘renminbi’ (the Chinese curreny) to Macau, increasing regional wealth and the opening of world-class facilities will transform Macau from primarily a day-trip market to a multi-day travel destination (Las Vegas Sands Corporation 2006).
Technological Factors
The rapid development and wide adoption of digital technology in Macau has lead to great changes in the hospitality and tourism industry. Because of the advancements in technology, physical distance has lesser effect on tourists. Telecommunications and transportation become more efficient and less expensive. Distance is bridged even further using the Internet. Technology allows tourists to book hotel accommodations and air tickets online. Electronic brochures are now widely used in the promotion of trade fairs and travel products.
SWOT Analysis
SWOT (Strengths and Weaknesses, and Opportunities and Threats) is a basic analytical tool in management that has become popular in recent years. SWOT analysis is often used by strategic planners and top management in developing competitive strategies. It is typically used to decide corporate strategies and to make product or market level analyses (Reddy 1994). SWOT is a widely used thinking framework for identifying Strengths, Weaknesses, Opportunities and Threats. It enables key factors to be visibly recorded as a high-level summary of a business. SWOT analysis is a summary that is simple but powerful. It also enables a judgment to be made about aspects of the external business environment, which can affect the performance of the business, through looking at the Opportunities and Threats it faces in the wider world (Elkin 1998).
Strengths
1. Quality Products and Services – Sands Macau is committed to product and services.
2. First Mover/Innovator – Sands Macau is seen as an innovator in terms of amenities, facilities, designs, technology and products.
Weaknesses
1. Unable to Maintain Leadership Position – Because of intense competition Sands Macau cannot maintain its leadership position in the casino industry.
Opportunities
1. Development of the Cotai Strip – The Cotai Strip in Macau is being further developed as a business district where hotels, casinos and other establishments can be accommodated. This offers new opportunities for Las Vegas Sands Corporation to expand its businesses in Macau.
2. Increase in Visitors – Macau is experiencing a steady growth of visitor numbers.
Threats
1. Political, Social and Economic Changes – political, social and economic developments in Macau, particularly the changes in policies of the governments or changes in laws and regulations or their interpretations may adversely affect the company’s operations and cash flows.
2. Intense Competition – the hotel, resort and casino businesses are highly competitive. Sands Macau current competes with numerous other casinos located in Macau. In addition, it is expected that the competition will increase in the near future from local and foreign casino operators. Sands Macau will also compete to some extent with casinos located elsewhere in Asia, such as Malaysia’s Genting Highlands, as well as gaming venues in Australia, New Zealand and elsewhere in the world, including Hong Kong, Japan, Singapore, Taiwan and Thailand and other gaming centers worldwide.
3. Typhoon and Other Natural Disasters – Macau us susceptible to severe typhoons that may disrupt operations. Macau consist of peninsula and two islands off the coast of mainland China. On some occasions, typhoons have caused a considerable amount of damage to Macau’s infrastructure and economy. In the event of a major typhoon or other natural disaster in Macau, Sands may be severely disrupted and the results of operation could be adversely affected.
Porter’s Five Forces
Porter identified the five forces model of competitive strategy. He identified the five forces as:
1. Competition among existing firms – this is the natural competitive rivalry, which exists between the various business operating within the industry market place.
2. Threat of new entrants – this is the potential likelihood of, and ease of, entry for new firm into the market.
3. Threat of substitute products or services – this is where a product or service, perhaps produced through a different technology, enters the market.
4. Bargaining power of suppliers – this examines the relationship between businesses in the industry and the suppliers to those businesses. Where the suppliers have a unique or restricted availability product they can exert a strong influence over process and conditions of supply, therefore potentially putting pressures on the businesses purchasing their product/services.
5. Bargaining power of buyers – this examines the relationship between businesses in the industry and the customers of those businesses. The purpose is to identify the relative strength of the business in the customer relationship (Elkin 1998).
1. Competition among existing firms - the growing casino and hotel industry in Macau, Hong Kong, Singapore and the rest of Asia presents a fierce competition among the existing firms in the region. Sands Macau faces competition among other casinos both locally and regionally. In the hotel and casino industry gaining and maintaining customer loyalty is very difficult. There are a lot of choices and customers can switch brands quickly. Moreover, every hotel and casino offers enticing packages and promos making strong positioning difficult for every hotel and casino.
2. Threat of New Entrants – The fierce competition among existing hotels and casinos is further intensified by the entrance of new players. Since the opening of the Macau casino market in 2002, many local and international organizations have expressed interest in developing casinos in the territory. Joint ventures, mergers and collaborations are common. Local organizations are partnering with giant groups in order to establish deluxe casinos in Macau.
3. Threat of substitute products or services – many facilities, services and technologies are being introduced. There is also a threat that consumers are attracted by different destinations in Asia that offer similar products or services as well as substitutes. One example is Singapore, which is also developing its hotel and casino market in order to attract visitors. Sands Macau faces competition from casinos located in other areas of Asia, such as the major gaming and resort destination Genting Highlands Resort, located outside of Kuala Lumpur, Malaysia and casinos in South Korea and the Philippines, as well as pachinko and pachinslot in Japan (Las Vegas Sands Corporation 2007).
4. Bargaining power of suppliers – Sands Macau is able to develop a strong relationship with its suppliers. The casino collaborates with different suppliers.
5. Bargaining power of consumers – Sands Macau has revolutionized the gaming industry in Macau. It introduced different innovations and changes in order to attract more customers. The customers have a strong bargaining power.
Competitive Advantages
Competitive advantage can be considered as a condition, which facilitates more efficient operation and higher quality products and/or services for an organization. Michael Porter considers an organization where earning exceeds cost as an organization that achieved competitive advantage. Competitive advantage in Porter’s perspective is being able increase earnings despite the competitive pressures.
Major Functions and Support Functions
The value chain is a model that describes a series of value-adding activities connecting a company’s supply side with its demand side. According to Rayport and Sviokla (1996) by analyzing the stages of a value chain, the organization is able to redesign its internal and external processes to improve efficiency and effectiveness. The value-adding functions of a firm is divided into two – major and support. The major functions are operations; marketing; accounting and finance; and product service development. The support functions human resource management; purchasing; and technical function. In order for an organization to achieve competitive advantage, all functions must be related to each other.
1. Product Service Development
First Las-Vegas Style Casino in Macau
The Sands Macau was the pioneer in transforming the face of gaming in Macau with its lavish interiors and a choice of games pitched at a wider segment of gamblers. In the past, visitors to Macau’s casinos frequently complained about cramped environments, smoke-filled tables and indifferent servers. The sands Macau has raised standards by offering luxury, comfort, service and spacious gaming areas (Silk Road 2006).
Gaming Facilities Development
Table games are the dominant for of faming in Asia. Baccarat is the most popular game followed by other traditional US and Asian games. Slot machines are offered in Macau, but they are few in number because the structure of the gaming market in Macau has historically favored table gaming. However, with the increase in the mass market gaming in Macau, this is changing and slot machines of international standards are becoming an important feature of the market. Sands Casino is taking opportunity of this trend by introducing more moderns and popular products to appeal to the Asian marketplace. In order to help Macau become an even more desirable tourist destination, Sands Macau is introducing new facilities and standards of service (Las Vegas Sands Corporation 2006).
2. Advertising and Marketing
Sands Macau advertises in many types of media, including television, newspapers, magazines and billboards, to promote general market awareness of its properties as unique vacation, business and convention destinations. Sands Macau actively engages in direct marketing, which are targeted at specific market segments, including premium slot and table games markets.
Target Marketing
Through target marketing, Sands Macau focuses its advertising and marketing efforts on its target market segments.
Target marketing requires an ability to:
- Find the key characteristics that break a market into relevant ‘actionable segments’
- Identify and quantify which customers fall into which segments
- Target the best segments most likely to give the best results
Strong Brand
Applying marketing strategies to a specific product, product line, or brand is called Brand Management. Brand management is the application of marketing techniques to a specific product, product line, or brand. Brand management aims to increase the perceived value of the product to the customer, thereby increase brand franchise, and brand equity. Brand is seen as a promise that the level of quality people expect from a brand will develop customer loyalty. The amount of profit that is generated by a brand determines its value. Brand management starts with understanding what “brand” really means. This starts with the leaders of the company and especially to the people who interface with customers or who create the products that customers use. Strategic Brand Management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. These concepts and techniques are to improve the long-term profitability of the brand. Brand Management focuses on targeting the right consumers, awareness of the competition, the need for marketplace credibility for the offering and clearly defined benefits to the consumer. The benefits your brand represent to consumers may trigger emotional feelings that can motivate them to consider your brand as superior to your competitors'. The benefits themselves have to be credible and presented in language that consumers understand.
One of the group’s strategies is to build a strong brand. Differentiation is accomplished by building a strong brand that creates brand equity. Brand equity produces value to the customer. Brand equity causes brand loyalty among customers. The group (Las Vegas Sands) has been in the business for a long time. The group is able to develop a strong brand that serves as one of its competitive advantages. Because of the strong brand, the group is able to keep its customers. The service providers – all the staff are trained in order to maintain the quality of service. The Group obliges every staff to adhere to the standards in service, product quality, design, construction and operation. The management ensures that opportunities for training, development and continuous learning is available for everyone.
3. Human Resources
The success of Sands Macau in large part depends upon its ability to attract, retain, train, manage and motivate skilled employees. The company’s human resources are considered as one of the sources of competitive advantage.
Human resources or human capital is the intangible resources of abilities, effort, and time that workers bring to invest in their work (Davenport 1999). The people at Sands Macau are the major contributors of strategic capability to the company. One of the advantages of Sands Macau over its competitors is the quality of service that the staff provide to its customers. Service has a big impact on the customers’ perceptions about the company’s product. Because of the importance of its people, Sands Macau formulated an employee development strategy through proper and effective training. This strategy is expected to strengthen Sands Macau’s position in the marketplace. Employee development can be an essential ingredient of an organization’s competitive advantage. Employee development includes all of the education and training that organizations might invest in their employees such as training employees to perform effectively in their current jobs, orienting employees to the workplace, developing them for advanced positions or programs, and building organizational capability for future success.
One of the keys to successful competition in the global market is the effective deployment of human resources to achieve strategic capability and competitive advantage. Human resources as an internal resource of a firm are one of the sources of strategic capability (Mcwilliams et al 2001). Human resources are among the top contributors to Sands Macau’s strategic capability. Effective management of an organization’s human resources according to Sims (2002) is a major source of competitive advantage and may even be the single most important determinant of an organization’s performance over the long term.
Key Learning
1. Organizational Strategies and Operation are Influenced by External Factors
Sands Casino Macau is considered as one of the most popular and most successful properties in Macau. The casino attracts large numbers of tourists and visitors. Despite the company’s obvious success, it is still affected by different external factors. The PEST analysis made it clear that political, economic, social and technological factors have a big impact on the company’s operation. In the political arena, Sands Macau is subject to different government polices and regulations. In the economic sphere, the company is affected by economic movements in the region. In the social sphere, we see the developments in the Chinese society and the different social policies have affected Sands Macau. In the technological arena, we see the company compete for supremacy in technology, amenities, offerings and facilities. Other external factors such as competition and the overall condition of the gambling industry affect the company’s strategies.
2. Internal Factors Affect Company’s Capabilities
The company’s capabilities rely on its resources, particularly its human resources. The company’s success can be attributed to its ability to manage and allocate its financial resources and enrich its human resources. We also had a glimpse of the company’s future plans.
3. Strategic Planning is Important
Sands Macau operates in a very competitive and unpredictable business environment. Many forces will shape the industry. In order to keep pace with the changes in the environment, to deal with issues and to use opportunities, the company conducts strategic planning.
Conclusion
The paper presented a case study of Sands Casino Macau. Through the case study, the researcher was able to discover many things about Sands Casino, its business environment, and its strategies. The paper presented a case study of Sands Casino Macau. Through the case study, the researcher was able to discover many things about Sands Casino, its business environment, and its strategies. Sands Casino prides itself as the first Las-Vegas style casino in Macau and has earned strong consumer support because of this reputation. Sands Macau is the first American-operated gaming facility to open in Macau, Special Administrative Region of The People’s Republic of China. Sands Casino Macau goes head to head with other large gambling facilities such as SJM, Wynn Resorts, and Galaxy. Other than its reputation as the first Las-Vegas style casino in Macau, Sands also invests in advertising and marketing. The company uses advertising and marketing to reach and attract its target markets. It employs different advertising tools and marketing strategies. Human resources is also a big factor in the company’s success.
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