Crown Limited (CWN) is one of Australia’s largest entertainment groups. The group’s core businesses and investments are in the integrated resorts sector. The Crown Entertainment Complex in Melbourne is one of the largest integrated resorts in the southern hemisphere, which owns a number of facilities including casino, hotels, function rooms, restaurants, shopping and entertainment services. Burswood Entertainment Complex was acquired in 2004 (Crown Limited, 2011). Burswood is Perth's premier integrated resort encompassing a casino, two international hotels, a state of the art convention centre, the 20,000 seat Burswood Dome and award-winning food and beverage outlets (Crown Limited, 2011). The Aspinalls Club in Mayfair is a high end London based casino. It is only one of five licensed high end casinos in Londons prime west end entertainment district.
Melco Crown Entertainment Limited (Melco Crown) was initially established as a joint venture company in 2004 with Hong Kong listed Melco International Development Limited to pursue new gaming ventures in Macau (Crown Limited, 2011). Melco Crown is a developer and owner of casinos and entertainment resort facilities. Betfair Australasia Pty Ltd (Betfair) is a betting exchange for customers resident in Australia or New Zealand. A betting exchange operates an online market where individuals with differing views on an event make fixed-price bets, effectively wagering between themselves.
Crown holds a 24.5% interest in Cannery Casino Resorts which is based in the US and has the following operations: The Meadows Racetrack & Casino, Pittsburgh, Pennsylvania; and Cannery Casino, East Side Cannery and Rampart Casino in Las Vegas (Crown Limited, 2011). It is a casino business in the United Kingdom. Crown holds a 50% interest in Aspers Holdings (Jersey) Limited. Aspers operate four regional casinos in Newcastle, Swansea, Stratford and Northampton.
Buyer Power (LOW)
Although consumers play a very important role in gaming industry, they still don’t have much bargaining power among this industry. One of the reasons for low bargaining power of customers is that gambling industry has already provide a large amount of services and entertainment facilities at a very low cost. There is no scope of bargaining for consumers in this industry due to cheap food, drink and services.
Supplier Power (LOW)
Nowadays, an increasing number of entertainment corporations operate into business of designing and producing gambling games and equipments. With the rapid development in technology, the suppliers of gaming industry have a cut throat competition as well, which weakens the impacts on the gaming industry. In Gambling industry, companies can have more choice of suppliers through which devices and services can be purchased.
Barriers to Entry (LOW)
Under such an intense competition in gaming industry, the barriers to entry should be low. With the support of government regulations, an increasing number of players have been entering into the gambling business, therefore it...