Mgm Resorts International Case Study
Case Study: MGM Resorts International
27 February 2013
Table of Contents
Key Dates and General History 3-5
Environmental Analysis 5-7
Porter Analysis 7-9
Marketing Strategy 9-12
Competitor Analysis (SWOT) 12-18
Company Analysis (SWOT) 18-20
Financial Analysis 21-22
Future Trends 22-23
Recommendations 23-25
Conclusion 25-26
References 27-28
Key Dates and General History MGM Resorts International was incorporated in Delaware on January 29, 1986 as MGM Grand, Incorporated, a subsidiary of Kirk Kerkorian's Tracinda Corporation. The company's first venture was MGM Grand Air which was launched in September 1987 as a luxury airline which offered service between New York and Los Angeles. MGM Grand Air was later sold for a note receivable totaling approximately $14,325,000 in 1994. Throughout its history, MGM Resorts International acquired, constructed, and sold many properties and has made big business moves to expand their business. In the following paragraphs, we will discuss some of these moves MGM has made over the years.
The 80's In 1988, MGM acquired the Desert Inn and Sands Casinos, but the Sands was quickly sold the following year. In September 1989, MGM announced plans to build a 700-million dollar Hollywood-themed complex, which would include a 4,000-room hotel and a theme park.
The 90's Construction on the Hollywood-themed complex, which included the MGM Grand Las Vegas and the MGM Grand Adventures, began in 1991 and finished up and opened it's doors in 1993. In 1995, MGM bought Diamond Beach Hotel and Casino in Darwin, Australia which was renamed MGM Grand Darwin. MGM later sold the subsidiaries that owned and operated the MGM Grand Darwin in 2004. A joint venture between MGM and Primadonna Resorts led
27 February 2013
Table of Contents
Key Dates and General History 3-5
Environmental Analysis 5-7
Porter Analysis 7-9
Marketing Strategy 9-12
Competitor Analysis (SWOT) 12-18
Company Analysis (SWOT) 18-20
Financial Analysis 21-22
Future Trends 22-23
Recommendations 23-25
Conclusion 25-26
References 27-28
Key Dates and General History MGM Resorts International was incorporated in Delaware on January 29, 1986 as MGM Grand, Incorporated, a subsidiary of Kirk Kerkorian's Tracinda Corporation. The company's first venture was MGM Grand Air which was launched in September 1987 as a luxury airline which offered service between New York and Los Angeles. MGM Grand Air was later sold for a note receivable totaling approximately $14,325,000 in 1994. Throughout its history, MGM Resorts International acquired, constructed, and sold many properties and has made big business moves to expand their business. In the following paragraphs, we will discuss some of these moves MGM has made over the years.
The 80's In 1988, MGM acquired the Desert Inn and Sands Casinos, but the Sands was quickly sold the following year. In September 1989, MGM announced plans to build a 700-million dollar Hollywood-themed complex, which would include a 4,000-room hotel and a theme park.
The 90's Construction on the Hollywood-themed complex, which included the MGM Grand Las Vegas and the MGM Grand Adventures, began in 1991 and finished up and opened it's doors in 1993. In 1995, MGM bought Diamond Beach Hotel and Casino in Darwin, Australia which was renamed MGM Grand Darwin. MGM later sold the subsidiaries that owned and operated the MGM Grand Darwin in 2004. A joint venture between MGM and Primadonna Resorts led