Case Study Wynn Resorts

Internal Analysis
Functional Level Strategies/Mission
Wynn Resorts, Limited mission statement is: “Wynn resorts strive to be the leading provider and choice of elite, Luxurious casino and resort experiences worldwide.” (Mathlouthi, “Wynn Resorts”) Wynn resorts utmost essential operational strength is the founder himself, Steve Wynn. Mr. Wynn has over thirty years of experience in Las Vegas. His prime connections, alliances and expertise within the industry that he holds, cannot be easily replaced. The CEO’s immersion with the company delivers an exclusive distinctive advantage. Having an expert in this field provides the resort with a competitive advantage. Wynn is a proactive CEO who is very involved with the company. You can find him on the
resort floor in Las Vegas making sure everything is going to perfection. If Steve Wynn was to ever become absent in the company to some extent reason other than ill health or a passing, the company would suffer a great loss. (Duane, Hoskisson, Hitt, C-260) Another significant advantage the company adheres is its scarce resources. “Today Wynn Resorts, Ltd. has a premier spot on the Las Vegas strip with the only golf course.” (Duane, Hoskisson, Hitt, C-260) Wynn also has one of the six licenses in Macau, China. I accidently put down four in the presentation but I meant six. There are only six gaming licenses in Macau, China and Wynn Resorts, Ltd. acquires one of them:
Licenses are up for renewal until 2020 which definably gives Wynn Resorts, Ltd. the security of income coming in until 2020. Licenses are up for renewal or extended for operator if they have invested meaningful capital and help positively develop the economy of Macau. Given the limited land available to develop and the government seeming preference to control growth of the region we also think it is likely that there are not any meaningful new gaming concessions or table allocations presented at the time of renewal. As result we see a continued controlled limited supply of competition for the Macau market over the next decade, supporting our narrow moat rating. (Wasiolek, “MGM Stands to Gain Gaming Share in Macau with Its Cotai Opening in 2017, No-moat Rating Intact.")
Wynn is practically the only high-end casino in Macau, the rest are comparatively minor facilities. This also helps Wynn Resorts Ltd. distinct itself from abroad competition in Macau. Having these scarce resources provides the company with significant advantage. Wynn Resorts, Ltd. has situated itself in very specific areas. They are not just accidental localities. The expansion of Wynn resorts in these precise regions signifies a strategic opportunity. There are three locations explicitly chosen with a purpose. There is the Las Vegas location which is virtually a resort metropolis with limitless entertainment and casinos. Las Vegas represent the place where it all began. This location is the perfect spot for Wynn Resorts, Ltd to be in. The Macau location a place that is notorious for being a popular gaming destination in the world. This particular area has allotted Wynn Resorts Ltd. with immense growth and opportunities. Even though the Chinese government ensures no casinos in its mainland, they have surpassed the casino control in Macau. The Massachusetts location, a new up incoming location. Which happens to be the fourth richest in the United States. Wynn resorts target market consists of high income individuals, this place is a perfect target to gain market share. “The product that Wynn Resorts retails is a luxury destination experience, which consents consumers to justify spending significant amounts of money gambling, dining, drinking, shopping and in all the other amenities Wynn Resorts offers.” (Duane, Hoskisson, Hitt, C-260) The strategic development of its products is one of Wynn Resorts utmost marketing assets.
The company tactically established the Wynn brand name to be synonymous with its superiority service sector and its luxuries amenities. In order for Wynn Resorts Ltd. to keep its prestige brand the company needs to constantly promote its luxury brand name this process is a key role of Wynn Resorts Ltd. strategy.
Firms Culture/Structure/Control
The Wynn Resorts culture is constructed on the concept of compassion. They care about their guests, the resort, and each other. The resort is organized as a clan, they are very family oriented. Their culture promotes team work to provide the finest assistance in the hospitality field. The company’s actions as a whole define who they are as an organization. But at the same time I can see the organization falling into a hierarch-formalized structure because they depend on one leader the CEO, Steve Wynn to make all the
decisions.