Wynn Resorts: Differentiation Strategy - Essay Example

Wynn Resorts Wynn Resorts began its operations in 2002 with a sole business aim of offering casino and non-casino services. Theresort has business operations in Macau and Las Vegas, Nevada. In Macau, the Wynn Resorts primarily operate casino hotel resort that offers gambling services and attracts an enormous number of clients. The Macau resort consists of two luxury hotels namely Wynn Macau and Encore that have casino space, retail space, dining services, and leisure and recreational facilities (Wynn Resorts Limited, 2015). Similarly, the Las Vegas branch hosts meetings, retail services, and entertainments that contribute huge incomes for the resort. The Wynn Resorts has maintained excellent performance despite fierce competition from other giant resorts including Las Vegas Sands Corp and MGM Resorts International. Notably, Wynn Resorts uses the differentiation strategy to carve a niche in the ever-competitive hospitality industry. Differentiation Strategy The Wynn Resorts product differentiation strategy has been successful in enabling the resort to carve a niche in the casino and non-casino market. Notably, the strategy has fostered uniqueness in Wynn Resorts’ services by distinguishing them from the giant competitors such as MGM Resorts and Las Vegas Sands Corp Resorts. It is noteworthy that the Wynn Resorts has endeavored to pursue the product differentiation strategy by designing properties and casinos that offer a unique experience to a large customer base. For instance, the resort has invested a lot in marketing itself as an exceptional destination that provides premium experience leaving the clients satisfied. The excellent customer service coupled with the state-of-the-heart facilities have facilitated the achievements many positive results in terms of revenue growth and increment in the numbers of clients seeking Wynn Resorts services (Wynn Resorts Limited, 2015). For instance, the superior experience persuades the customers to spend large sums of money on dining, shopping, gambling, and recreational services available at the Wynn Resorts. In sum, the differentiation strategy has been successful in attracting many customers and generating huge revenues for the Wynn Resorts. Future Strategic Directions Wynn Resorts has vibrant future strategic directions. The strategic directions, which the resort plans to pursue, encompass the cross-platform marketing and business expansion strategies. Fundamentally, the Wynn Resorts aims at utilizing the cross-platform marketing to penetrate the casino and non-casino services. In the past, the resort has employed the mainstream media, including radio, magazines, television, newspapers, and billboards to popularize it among the existing and potential customers. The cross-platform marketing strategy seeks to augment the aforementioned traditional marketing channels (Wynn Resorts Limited, 2015). In addition, the strategic direction will complement the current database marketing approach that entails loyalty program and reward system, which the resort has used since the inception. It is worth noting that the Wynn Resorts will utilize the domestic and international marketing executives to achieve the positive results as contained in the cross-platform marketing strategy brief (Wynn Resorts Limited, 2015). In essence, the Wynn Resorts is hoping to popularize the exceptional services while creating a competitive advantage at the same time. In addition to the cross-platform marketing, the Wynn Resorts seeks to pursue a business expansion strategy. The business expansion strategy entails increasing business operations through market penetration, mergers, acquisition, and diversification (Kazmi, 2008). Wynn Resorts intends to pursue the business expansion strategy, and increase international, as well as, the domestic operations. The firm will use the acquisition and mergers to attain new business destinations. Currently, the resort has been pursuing the plan to establish casino services in Massachusetts. Wynn Resorts already has spent many funds to get the permit to operate a casino in Massachusetts. Statistics indicates that Wynn Resorts has used about $1.6 billion to acquire the license (Zacks Equity Research, 2015). It is projected that the casino in Massachusetts will be complete by 2017. Such projects will expand to the international arenas, especially in Europe and Asia. In essence, the business expansion strategy aims at strengthening the Wynn Resorts capacity in the gambling and non-casino markets. Upon pursuing the strategy, the resort will endeavor to create a competitive edge, penetrate into new markets, and attain economies of scale. In sum, the expansion strategy will increase the domestic and international presence of the Wynn Resorts services. Critique The future strategic directions, which the Wynn Resorts seeks to pursue, are good. Cross-platform marketing and business expansion strategies are crucial for increasing the domestic and international operations. Consequently, the increased operations will result in the growth of revenue and customer base. Hence, the strategic directions are vibrant and can facilitate the Wynn Resorts to attain a firm stance in the hospitality industry. However, the cross-platform and expansion strategies are not unique, and the competitors such as Las Vegas Sands Corp and MGM Resorts can copy the directions. It is noteworthy that firms have endeavored to pursue the market penetration, vertical, and horizontal strategies to attempt to reduce competition by carving a market niche. Nonetheless, such strategies have not entirely successful because the competitors utilize the same strategic directions. In this regard, the increment in the number of firms, which offer casino and non-casino services implies that it would have been advisable for Wynn Resorts to carry out an intensive and extensive research, and formulate unique strategic plans. In effect, the increased competition in the gambling, entertainment, and recreational business demands firms to devise distinct strategies that facilitate them to attain a competitive advantage. Wynn Resorts should have examined the strategies that are challenging to replicate and implement in order to facilitate the firm to expand in the domestic and international arenas. It is worth acknowledging that the cross-platform marketing and business expansion strategies are viable, and can enable the resort to acquire new operations and realize a growth in customer base. However, the easy manner in which the competitors can copy implies that Wynn Resorts will enjoy the gains from the strategies for a short duration. The competition will set in, and make it difficult for Wynn Resorts to have the long-term positive impacts of the strategic directions. It would be advisable for the resort to practice continuous research in terms of the strategic formulation in order to avoid using strategies that seeks to achieve short-term benefits while capping the long-term positive outcomes. References Kazmi, A. (2008). Strategic Management and Business Policy. New Delhi: Tata McGraw Hill Education. Wynn Resorts Limited (2015). United States Securities and Exchange Commission: Form 10-K 2014. Retrieved 7 May 2015 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjMyMTUyfENoaWxkSUQ9LTF8VHlwZT0z&t=1 Zacks Equity Research (2015). Wynn Resorts’ Everett Plan Progresses; Presents Redesign. Retrieved 7 May 2015 from http://www.zacks.com/stock/news/161671/wynn-resorts-everett-plan-progresses-presents-redesign Read More