Business Models for the Gaming Industry
A business model is an intensive description that details the different components of a business and how they all integrate to fulfill the objectives that are set out by the business. A business model captures how the activities that the company engages in create value to the company and the customers. For the purpose of this analysis, I will use the Wynn casino as an example of a company in the gaming industry and I will set out to evaluate its business model. The reason as to why I choose this company is that it is the best example of a multipurpose successful gaming enterprise that exists in this century. Its financial record is highly impressive and it serves as a good model for other companies to emulate. When it comes to business especially the casino businesses, all new enterprises emerge from an intensive evaluation and modification of older enterprises.
Casinos are unique enterprises due to their multi encompassing nature. They are able to house many different and independent businesses if they are operated successfully. The Wynn casino is a unique resort with its businesses in Macau and Las Vegas, Nevada. It has 2,716 rooms and itis owned by Steve Wynn. It was the first casino to feature a car dealership which it holds with the Ferrari and Maserati Companies. It also features other pioneer innovations that have set it apart from the other competitors including, the fact that it was the first casino in Las Vegas to show concern for the convenience of its customers by combining the room key and the Wynn casino frequent player card into one card. It also has an educative art gallery that is a capture feature for many art lovers(Binkley, 2008).
Gambling industries are shaped by many factors including external forces. These include the economic environment. In the last financial term the Wynn Las Vegas casinos have been badly affected by the economic slowdown while the Macau one continues to flourish.
The success of a casino will depend on the availability of money from the customers. The fact that this casino is set up in Nevada and in particular in Las Vegas which is the most popular gambling site ensures that they have a wider audience and reception. The populous highly economic city, offers the Wynn Las Vegas the necessary man power, money and the customers necessary to operate the casino. In the Macau branch the Wynn casino was established in a rapidly growing populous city that will ensure its rapid growth (Hsu, 1999).