The first issue which affected the competition in the casino industry is the legalization of gambling activities. This has affected the threats of the new entrants since more businesses is able enter the industry without the law restrictions. However, although it is relatively easier to enter into the industry, but the large amount of capital required for building a casino and the current companies in the industry poses certain issue for new entrants. Thus, the threats for new entrants remain relatively medium.
Comparatively, the bargaining power of buyers is considered medium. Although there are several other forms of gambling games available; such as Orlando, New York, Native American Casinos and waterborne casinos, but all these belongs to different sector of the industry. In general, these various casinos cater to different types of visitors. Furthermore, visitors have little say in the pricing of the casinos thus, bargaining power of buyer can be considered medium.
Contrastingly, the bargaining power of supplier in the industry is low. The only supplier in which casinos may have can be related to the normal furnishing of the casinos and perhaps the food supplies. However, bargaining power of supplier is relatively low since the casinos are still relatively dominant and they have more advantage over the small suppliers.
The most prevalent issue in the case is the threats of Substitutes. Since the legalization of the law, more gambling and other form of gaming is also flourishing across the nation. Gaming on tribal lands had attracted customers to patronize. Furthermore, gaming machines at racetrack, internet gambling, waterborne casinos are also on the... [continues]
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(2010, 05). Casino Industry. StudyMode.com. Retrieved 05, 2010, from http://www.studymode.com/essays/Casino-Industry-334220.html
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"Casino Industry." StudyMode.com. 05, 2010. Accessed 05, 2010. http://www.studymode.com/essays/Casino-Industry-334220.html.