Mgm Mirage Case Study

Topics: Las Vegas Strip, MGM Mirage, Bellagio Pages: 14 (3766 words) Published: May 3, 2011
MGM Mirage

Introduction of the Company
MGM Mirage is one of the largest gaming industries in the United States and specifically Las Vegas, Nevada. The two people responsible for the start of this empire are Kirk Kerkorian and Steven Wynn. Kirk Kerkorian opened up the first MGM Grand in Las Vegas, Nevada in 1973. Steven Wynn moved to Las Vegas in 1967 and after investing in land on the strip he later opened up the Mirage, followed by Treasure Island and the Bellagio. The MGM Mirage was created during the merger in 2000, and Steven Wynn is no longer affiliated with this company. Since this merger, MGM Mirage has grown and acquired numerous other properties. Currently MGM Mirage acts as a holding company and conducts operation through its wholly owned subsidiaries. The MGM Mirage owns many of the large hotels and casinos on the Las Vegas strip, all which provide restaurants and some the largest entertainment in the world. In 2006 MGM Mirage had $7 Billion in revenues and $600 Million net profits. Mission Statement

MGM Mirage’s mission statement that is posted on their website is “Our mission is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every corner of the world in order to enhance shareholder value and to sustain employee, customer and community relationships.” The mission statement that is stated in the text book is “The resorts and casinos of MGM Mirage are some of the most famous in the world, widely credited for establishing a new generation of excitement in Las Vegas! Our 24 destinations are renowned for their winning combination of quality entertainment, luxurious facilities and exceptional customer service. Our dedicated staff of over 70,000 employees are committed to providing an unsurpassed experience for every one of our guests. We are actively expanding our presence globally, with potential developments in a number of domestic and international markets. At MGM Mirage, we are still striving together to deliver our enticing blend of entertainment to every corner of the world.” External Analysis

Factors| | | |
Opportunity| Weight| Rating| Weighted Average|
Leveraging Brand Name and Skills| 0.2| 2| 1.8|
Domestic Tourism| 0.1| 3| 2.9|
Retired Population| 0.1| 1| 0.9|
Emerging Profits| 0.25| 2| 1.75|
Emerging Markets| 0.2| 3| 2.8|
| | | |
Threats| | | |
Airline Cuts| 0.05| 1| 0.95|
Government Intervention| 0.1| 3| 2.9|
| | | |
Total| 1| | 14|

1. Leveraging Brand Name and Skills
Some companies are very large and have powerful brand names that allow them to control their name and talents to other businesses for a fee. In some case the brand allows a company to avoid all the capital expenditure issues involved in building a brand property or product. Therefore, the brand earns a pure profit from the enterprise. 2. Domestic Tourism

A lot of international travel my be cut back to due recessions and economic hardships, but tourists may be willing to travel domestically, some of the hot spots will include Las Vegas and Hawaii 3. Retired Population

As the number of retirees increases, so will the demand for older aged activities and products. Mobile vehicles, which are popular amongst retirees, should see a gradual increase over time. Casino stocks and leisure activities, such as boating will also see an increase. It also increases the demand for retirement services from health care to money management. 4. Emerging Profits

China is one of the largest producers for good throughout the world, and with the economy constantly growing; they will need more equipment and supplies from around the world. Almost all large industrial companies should benefit from China and other countries growth. 5. Emerging Markets

Demand from emerging markets is helping growth and margins. Emerging markets create new opportunities to expand products from the...

References: WWW.MGMRESORTS.COM
WWW.FINANCE.YAHOO.COM
WWW.HOOVERS.COM
WWW.MGMMIRAGEAFFILIATES.COM
WWW.CITYCENTER.COM
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