Business Policy Development and Implementation Critical Thinking Mod 5 Essay

Business Policy Development and Implementation Critical Thinking Mod 5 - Essay Example Encore also an expansion of Wynn Las Vegas is located adjacent to Wynn Las Vegas featuring 2,034 all suited hotel (Wynn Resort, 2013). One of the greatest operational strength of the resort lies in the hands of the founder, Steve Wynn. Wynn resorts differentiate its resort from the competitors through an idea which states, â€Å"Bigger ain’t better. Better is better.† However, as Steve Wynn is the biggest strength for the company similarly if Steve Wynn leaves the organization it shall result in failure for the company acting as weakness for the Wynn resorts and casino (Hoffman, n.d). Growth and expansion strategy Wynn Resorts has been planning to expand its business and build on new resort located on the Cotai strip in Macau and thus plans to spend about $4billion. Wynn operates in Macau as Wynn Macau and Encore and thus by expanding the resort is trying to strengthen the position in Macau. The new project aims to start off on the Cotai strip and plans to have 2000 roo ms, 10 restaurants and 500 gaming tables. Macau has grown to be the epicenter of the gaming industry across the globe with all renowned gaming companies looking for opportunity to expand in the region. According to reports of PWC the gaming market in Macau is expect to double and value at 62.2billion by 2015 (Trefis, 2012). Wynn Resorts and Casino deals in gaming and operates as one of the largest casino players in Las Vegas and other areas. So analyzing the Macau gaming industry, it should be profitable for Wynn Resort and Casino to build a resort in the Cotai Strip. Wynn expects that the Cotai Strip resort shall prove to be irresistible for the guests (Velotta, 2012). To analyze whether Wynn should pursue expansion in Cotai Strip Porters five force model has been used to support the expansion strategy and whether capital investment in the resort shall be profitable. Porters five force deals with five forces and are applied to identify the attractiveness of the industry. The indust ry here is the gaming industry and analysis is made on Macau gaming industry to analyze the future of Wynn resorts and casino. Bargaining power of buyer: The bargaining powers of the buyer refer to the ability of the customer to influence the price as well as terms of purchase. In the gaming industry the buyer power is least as it does not have any power in influencing the price. The prices are set by the companies and it does not change irrespective of any conditions. Wynn resorts plans to raise the price of the resort in Cotai Strip as compared with its other resorts. Power of supplier: The power of supplier is minimal but do not have the power to exert power over the firm and shall not crash on the profitability of the company. Threat of substitute: Threat of substitute for the gaming industry may be categorized from medium to high. But since Wynn Resorts deals in casino, the threat for the resort is relatively low. Threat of potential entrant: The threat of new entrant is low as huge capital investment is required to set up casino as they are already established players in the market. Rivalry: The rivalry is high as almost of the renowned gaming company from across the globe has been planning to expand in Macau that makes the competition even tougher in the current global economy growth rate. Conclusion Analyzing the Porters five force for Wynn Resort and Casino, it may be said that the decision taken by Steve Wynn to expand in Macau