Harrah’s Entertainment, Inc. has been a pioneer in the casino industry by becoming the first company to become publicly trade in the stock market. Also, they have set themselves apart from competitors with their approach to customer service and building lasting relationships. These differentiations from competitors lead them to highly invest on information technology to track customer’s trends and habits. This paper analyses how the Harrah’s benefits from their unique approach to information technology, but at the same time points out how other aspects of the business have been disregarded or they need to be improved. Issues such as, infrastructure compared to competitors, the fact that due to the investment on information technology Harrah’s has higher debt than any other gaming company, their brand identity needs work in order to have a better customer value, and they need to work on their migration to the web and online gambling.
TABLE OF CONTENTS
Potential Obstacles & Risks
Harrah’s Entertainment, Inc. has been very influential in the casino entertainment industry. They were the first casino company to become publicly trade on the New York Stock Exchange and they are a major player in the industry with 52 casinos locations in the U.S. and International.
Harrah’s Entertainment, Inc. – Loyalty Management
Harrah’s Entertainment, Inc. issues lay on not having a strong brand identity, poor infrastructure compared to their competitors, their high debt and the fact that they need to work on the migration to the web and the possible set back on online gambling due to state laws and regulations. Primary Issues
Harrah’s is proud of generating customer loyalty by focusing on providing an unforgettable gambling experience instead of attracting customers because of where the casino might be located or how extravagant it is. Per (Johnson. nd) “With this brand identity, it strives to provide consistent value and a reliable, predictable experience” (p2). So far this approach has work for Harrah’s, but if they do not have a strong brand identity in the long run the customer value could be affected due to how it’s being perceived compared to other casinos.
In relation to the brand identity, is the issue that the company has invested a lot of financial resources on information technology instead of facilities and infrastructure. This making Harrah’s casinos outdated and putting them in disadvantage when compared to other competitors, specially now days that competition is so strong in regards to how it appears to the naked eye. Cities like Vegas are all about perception, and selling an illusion. Secondary Issues
It almost seems as a contradiction that a company like Harrah’s that has invested so much on information technology needs help in regards to their migration to the web and making their website more appealing to customers. They have made changes to the website and enable the customer to check their rewards, make reservations, but the actual page lacks creativity and personality.
Another secondary issue is the online gaming situation. This is an industry that is just starting and has the potential to become big, but there are a lot of people against it since it violates state laws. Per (Johnson. nd) “it will be difficult to prohibit Americans from participating in online gambling” (p10) but it remains a possibility for a near future and a way for casinos to expand their brands. T.O.W.S
* Competitors having better facilities and infrastructures compared to Harrah’s Opportunity
* Continue to invest in business intelligence
* Use part of profits to upgrade some of the furniture’s at...
References: Johnson, W. C. (n.d.). Harrah 's Entertainment, Inc. - Loyalty Management. Marketing Know-How. Retrieved November 16, 2012, from www.marketingknowhow.org
Please join StudyMode to read the full document