LAS VEGAS SANDS CORP.
Table of Contents
The External Environment5
The Internal Environment11
Capabilities & Core Competencies14
Value Chain Analysis17
Reducing the Reliance on Debt20
Las Vegas: Pursuing New Business Level Strategies21
Building New Core Competencies: The Development Business21
Overall Corporate Level Strategy and International Diversification22 Looking Ahead23
List of References31
Las Vegas Sands Corp. (NYSE: LVS) first came into existence in 1988. Prior to 1988, the company was more commonly known as the Sands Hotel, and its main business was carried out solely in the hotel industry. Today, not only does it own various hotel and casino resorts globally, it is also one of the world’s leading international developers of multi-function integrated resorts. In a relatively short span of 20 years, how has the company been able to transform itself from an aging hotel operator to what it is today? This report seeks to answer this question by presenting an in-depth analysis of the many factors that have been responsible for this success. Firstly, the environment in which the company is operating in will be carefully looked at; this will include looking at the general trends within the environment, followed by an examination of the resorts and casinos industry. Next, an analysis of the strengths and weaknesses of LVS’ competitors will be carried out in a bid to provide an offensive and defensive strategic context through which opportunities and threats can be easily identified. The environmental analysis will then conclude with a discussion of the future trends of the industry. The report then moves on to an internal analysis of the company itself. This begins with a layout of the resources currently being utilized by the company, followed by the capabilities and core competencies formed through the unique bundling of these resources. Admittedly, the value chain of a service firm such as LVS is relatively more implicit than a firm operating in the manufacturing industry. Nevertheless, we provide a value chain analysis, which attempts to identify value and non-value creating parts of LVS’ operations. Finally, we briefly analyze the company’s performance since its listing on the NYSE in 2004. To conclude, the main portion of this report is devoted to the identification of the weaknesses and threats that have been derived from both the environmental and industry analysis and also possible strategic solutions to these detrimental issues. Company Profile
Las Vegas Sands Corp. (NYSE: LVS), one of the leading international developers of multi-function integrated resorts, was incorporated as a Nevada corporation in August 2004. As a controlled company under NYSE listing standards, the company’s CEO and Chairman Sheldon Adelson is the principal stockholder with 69% voting power in the company. The Las Vegas Sands Corp. was formed in 1988 when Adelson and his partners from The Interface Group (TIG) bought over the Sands Hotel & Casino in Las Vegas. In line with the aim to attract more conventions into Las Vegas, Adelson and his partners constructed the Sands Expo and Convention Centre in 1989. TIG was subsequently sold to a Japanese corporation in 1995 and Adelson used the proceeds to buy out his partners to become the sole owner of the Las Vegas Sands Corp. Since then, under the leadership of Adelson, LVS has mainly concentrated on the construction of mega-resort hotels (hotels that encompasses a range of entertainment not restricted to casinos) in Las Vegas and Macao and more recently in Singapore and Pennsylvania. Today LVS owns and operates The Venetian Resort Hotel Casino, The Sands Expo and Convention Center and The...