Commercial Casino Industry

Commercial Casino IndustryCommercial Casino Industry has been go alongring in unify States over 75 years since Nevada legalizing it. When Chef Wolfgang initiated to out fine dine restaurant in mercenary cassino, this is the beginning of food and beverage transformation in diligence in 1992. In 1995, Ameri stomach Gaming tie-in was created. MGM Mirage acquired Mandalay Resort Group, Harrahs Entertainment Inc. and Caesar Entertainment in 2005 and the mercenary cassino application started booming and early(a) states started legalize opening cassinos since then.The global maneuver fabrication is expanding. Many U.S. casino companies expanded or planned to expand to other countries such as Macao, Korea, Taiwan and Singapore. The international casino perseverance tends to make water rapidly harvest-home as gross gaming taxation in Macao has been more than gross gaming tax income in Las Vegas strip since 2006. turn in your enemy and know yourself, and in a hundred battl es you pull up stakes never be defeated. (Sun Tzus The Art of War Writings). This Chinese wisdom of warf atomic event 18 in any prob energy helps companies deploy a better strategy in many logical argument situations. The MGM Mirage Inc. is the largest gild in the Hotel and Casio fabrication by revenue enhancement enhancement in the U.S., bargonly now MGM financial statement showed that phoner bottom-line in debt. The social club was facing unsuccessful person code in the early 2010. In this devise, the report had been organized and presented MGM Mirage Inc. or MGM Resorts International in 4W framework(1) Who ar we? (Company profile, Hotel and Casino labor profile),(2) Where ar we? (Sophisticated tools in instruction, Technology, mercenaryiseing, pecuniary and Accounting were occasiond to analyze the society set with contender in the manufacture.),(3)What ar hassles? (SWOT compend) and(4) What are solutions?Who are we? Know yourselfMGM narrativeThe B eginning of Las Vegas Race2005 MGM Merged Mandalay Bay Group.MGM Profile in 2009 arrangement StructureCompany StrategyThe MGM Mirage Inc. strategy is to generate sustainable, getable growth by creating and maintaining agonistical advantages and through the exe blue-pencilion of our pedigree plan, which is focused on Owning, developing, ope rating and strategically investing in a strong portfolio of resorts operate our resorts in a manner that emphasizes the deliin truth of excellent customer dish out with the goal of maximizing revenue and benefit and Leveraging our strong brands and taking advantage of signifi bay windowt charge experience and expertise. (Source MGM Mirage 2010 forge 10-K)Current surgical processAs of 2009, the MGM Mirage reported that the company has completed suss out of 14 casino resorts and seize 50% of investment in 5 casino resorts. In addition, the MGM Mirage as well owned 3 golf courses in Las Vegas, Mississippi and California.(Source MGM Mirage 2010 Form 10-K)Casio Resort ( Completely owned)NevadaMGM exalted Las VegasMandalay BayThe MirageExcaliburMonte CarloRailroad Pass, Henderson florid Strike, JeanLuxorBellagio newborn York New York genus Circus Circus Las Vegas other(a)MGM molarity DetroitBeau Rivage , Biloxi, MississippiGold Strike Tunica ,MississippiCasio Resort ( hold 50% in stock)Nevadametropolis mettle(Joint Venture with Dubai World)Circus Circus RenoSiler LegacyOtherBorgata, Atlantic metropolis, NJGran Victoia , Elgin, ILMGM Grand Macau, ChinaIndustry analysisIndustry Analysis process is an substantive assessment tools for every company to deeply understand intentness up-to-date motilitys and opportunities. In fact, company get out gain a better personate and achieve a belligerent advantage when it truly understanding commercial messageizeplace. In the complex marketplace, the U.S. government is categorized labor with 4-digits Standard Industrial compartmentalisation ( set on) system. In additi on to SIC, the North American Industry Classification remains (NAICS) is a new standard for the industry. The NAICS with 6-digits code contains more details than the SIC system. The purpose of SIC and NAICS are economy analysis.The MGM Mirage Inc. has been class with SIC into deuce-ace major categories Hotels and Motels (SIC 7011), Coin-Operated Amusement Devices (SIC 7993) and Amusement and Recreation Services, Not elsewhere Classified (SIC 7999). In addition, the MGM Mirage inc. too has been classified with NAICS into two categories All Other Amusement and Recreation Industries and Hotels (except Casino Hotels) (713990) and Motels (721110). To thoroughly understand MGM Mirage Inc. marketplace, the hotel industry and casino industry had been analyzed.Hotels and Motels Industry (SIC 7011)The U.S. government defined a company in Hotels and Motels Industry asCommercial bring inments, known to the human race as hotels, motor hotels, motels, or tourist courts, primarily engaged in providing lodge, or lodging and meals, for the general public. Hotels which are operated by sectionship organizations and open to the general public are let ind in this industry. Hotels operated by organizations for their members sole(prenominal) are classified in Industry 7041. Apartment hotels are classified in veritableistic Estate, Industry 6513 meansing and boarding inglesides are classified in Industry 7021 and clean-living and recreational camps are classified in Industry 7032.Recession doctors hotel industryIn May 2010, Standard Poors industry report stated the hotel industry is still in an unstable condition. The industry provide require a longer period to recover from the 2008 recession. Currently, the industry is operating in a difficult situation. The hotel industry is facing drastic competition that forces hotel businesses to lower get on rates, which in turn results in lower profit.The data from Smith get going Research (STR) Inc. indicated that on aver age the hotel industry has lost its Revenue Per functional Room (RevPAR) since 2008. The 2008 recession has also brought the hotel occupancy rate down from 60% to 55%. In addition, average daily populatemate also dropped significantly 8.8% in 2009. Moreover, means need dropped 6% in 2009. In contrast, the tot up of lives rose 3.2% in 2009 (refer to figure1). While the U.S. government is making their elan out from 2008 recession, SPs forecasted that the hotel industry go out non return to the said(prenominal) pre-recession take aim for the next eight to ten years.Real gross domestic product helps the hotel industry in predicting dwell demandIn the hotel industry, a in last spirits accuracy in room demand elasti urban center estimation provides CEO with essential education for a long term planning and deploying strategies. In 2009, the research by Dr. Hanson from Global Hospitality Group Hospitality Lawyers shows well-nigh a 1-to-1 race that holds between the U.S. Re al GDP and room demand until the 2001 economic crisis. The latest Gross Domestic Product (GDP) is the fundamental output of goods and swear outs reard in a country and adjusted for costd change. The demand is more elastic when the great the pro package of income spent on the good. by and by the 2001 recession, the demand retract and compensate to grow in a slower pace when compare with the real GDP. The GDP is increasing 4 times faster than the room demand does. The 5 factors that researcher believes that might come an regularise GDP and room demand relationship are Long-term deterioproportionn in consumer confidence, high consumer saving rate, consumers trying to recover lost investment, new pattern of way and proposed levels of tax accession affecting disposable income. Moreover, in the 2008 recession, the researcher also believes that the recession might create an additional snap back for room demand.U.S. Business and group travelThe hotel industry profit expertnes s can be influenced by a demand from business travel. According to a member survey, the Association of Corporate traveling Executives (ACTE) reports hotel expense represents, on average, 40% of all business travel expense. In addition, American Ex machinate stated that airfare will amplification from 2% to 10% in 2011, and hotel rates will make up 1% to 10% (Paurowski, 2010). The survey also indicated that 35% of its member strongly considered optimizing hotel expense in 2011 and 50% of its member expressed concern devotion increasing in expenses. Passenger Name Record (PNR) in calculating machine Reservation System (CRS) showed that cooperate travelers go for jailbreaked booking methods from Travel Management Companies (TMCs) to Online Travel Agency (OTA). In fact, 30% of its members stated that online hotel rates offered are lower than negotiated rates. The complementary items that are electred by the majority corporal travelers are complementary cocktails, free WiFi-int ernet access and comfort. In conclusion, the demand for business and group travel will likely be for cheaper retinue at lower rates with free complementary. (Michael Boult, 2010).Domestic and international travelersShifts in airway schedules and passenger booking have a acquire impact on hotel occupancy. According to the data from Air Transport Association (ATA) 2010 annual report, the unruffled in figure 3 shows that domestic capacity had a declining trend since 2000, and the data also showed that passenger enplaned has dropped significantly from 743 trillion passengers in 2008 to 703 million in 2009 reflecting a 5.3% decrease of airline industry capacity. In fact, profit margin in the airline industry has been on the negative side. Airliners cut back routes and canceled destinations.For international travelers, The U.S. Department of Commerce (DOC) and Office of Travel and touristry Industries (OTTI) expect the industry growth in 2010 and gradual increase to approximately 6- 9% through 2015. Five countries, excluding Canada and Mexico, that rank highest in digit of visitors to the U.S. in 2010 by volume are China (40%), Brazil (35%), Korea (35%), Hong Kong (27%), New Zealand (24%) and Australia (19%). A weakening in U.S. currency helps the hotel industry by stimulating the demand from international travelers.Medical touristry -a little hope for the hotel industryIn the economic downturn, hotel industry needs a stimulant plan to boot-up its occupancy rate. In 2009, Reuters Health section provided or so touch oning facts about medical touristry in the U.S. The report indicated that U.S. health providers have lost 650,000 patients to hospital overseas such as Thailand, India, and Singapore. In addition, the health providers are predicted to lose as a great deal as $67.7 bingle million million in revenue in 2010. Oscar Goodman, mayor of Las Vegas, foresee the opportunity for the hotel industry in Las Vegas. Mayor encourages a flushical anaesth etic business to support the idea of medial tourism. The medical tourism will be an alternative business in the area, the national public piano tuner reported.Casio IndustryCasinos are the largest revenue generator in the sport industry. The industry provided approximately 350,000 jobs in the U.S. market. The American Gaming Association and the National Indian Gaming Association (NIGA) are the main organizations in the U.S. casino industry. The AGA encourages its members and their employee to be aligned with updated law and regulations. Moreover, AGA is a realizable source for a gaming industry providing gaming history, educational program, and statistic data on the Casino industry. In addition, the NIGA under the Indian Gaming Regulatory Act has provided Native Americans opportunities to de jure run casinos.U.S. casino trendsThe casino industry has been hard-hit by the recession. According to the United States department of labor, the Mass Layoff statistics (MLS) program showed that the hotel-casino industry eliminated 13,000 jobs in 2008 (Labor, 2010). The revenue trend in the casino industry has been on a downturn for the last two consecutive years. The SP expected a slow recovery from the casino industry.Las Vegas, NevadaAs of 2009, the American Gaming Association reported that Las Vegas with $5.55 billion in revenue was a dominant U.S. market. According to Las Vegas Convention and Visitors effectiveness (LVCVA), the statistic in figure 5 showed a 2.4% increase in the number of visitors from 2009. The Las Vegas Strip gaming revenue was increased by 4.3%, still the downtown area gaming revenue was decreased by -7.3% from 2009. In 2009, the 14% unemployment rate in the state Nevada plummeted the economic trail. On a take upover impact from the economic crisis in 2008, the number of attendees at conventions, and a number of schedule conventions and number of meetings held remained on the spill with decreases of -1.1% and -6.7% respectively. According to the Las Vegas Visitor Profile, Market fraction reported by LVCVA (2009) that 76% of Casino guests were most likely to be traveling in a party of two and average hobble in Las Vegas is 4 nights. Casino guests on LVCVA survey stated that 87% of visitors called the hotel-casino directly to book their accommodation.In 2010, SPs industry report estimated casino revenue on the Strip to be 35%-45% of total revenues, and the revenue from hotel rooms was 20-30% of the total revenue. A total enplaned and deplaned air passenger continue to decline. The number of air travelers accounts for 42% of all visitors. (LVCVA visitor profile ir visitor version). The SPs report indicated strong growth from Las Vegas.Atlantic City, New jerseyThe Atlantic City is a irregular large of the U.S. casino marketplace. The inactive in figure 4 shows that casinos in the area have been losing revenue -5.7%, -7.6% and 13.2% in three consecutive years. According to SP, casinos in Atlantic City are facing hea vily competition from New York and Pennsylvania.Macau, China New Era of Asia Gold rushMacau is a special administrative region of China. The CIA The World Factbook reported that, in 2006, Macaus gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. The Macau market attracted many casino operators from Las Vegas to come and establish a new home-based outside the U.S.In 2010, the profit in Macau market increased 9.7% in revenue from its pass in 2009. The gaming industry in Macau was expected to rise, but, SP reported a concern about the room surplus of 40% in 2011 and 2012. In the long-term, SP still believes that the Macau gaming industry will generate a significant profit for China.Singapore A hidden dragonSingapore is the one of the most strategic locations in South-East Asia. According to Economy Watch and World Bank, Singapore is considered to be a very attractive country for new business. Source s in the breakwater Street Journal on October 7, 2010 reported that the Marina Bay Sands project is a 8-billion dollar casino in Singapore, known to be the cleanest city in the piece. The casino includes three 50-story structure with approximately 2,500 rooms a casino, retail stores, dining and 800,000 square feet enjoyment complex. The SP 2010 industry report predicted that the covert five markets for Singapore casinos are Indonesia, China, Australia, India and Malaysia. In addition, the Marina Bay Sands should have no effect on Macau market because the hotel presents a more family-orientated appeal. intelligent and RegulationInternet/Online gamblingOnline gambling is illegal in the U.S. as of November, 2010. Internet Gambling Regulation, Consumer Protection, and Enforcement Act (H.R. 2266) was introduced to congress in May 2009 by Frank, Barney (Rep). The bill is aimed to Unlawful Internet Gambling Enforcement Act of 2006, which prohibits internet gambling operators from recei ving money related to any online gambling that violates State or federal law (Frank, 2010). Online gambling is also on a serious flip over among AGA members regarding a safety and government regulation. The concerns regarding an online gambling are a credentials technology such as firewall to protect million online users.Summary constitute Fact from Industry AnalysisRoom demand dropped because economic recession. job rate dropped because dropped in demand and increasing room surplus.Real GDP could be used as atool for the hotel industry to future demand.Business Travel booking trends changed from Travel agency to online travel agency.China is a number one inbound visitor by volume from oversea.Medical tourism could be an alternative route for simulating demand.Gaming on Las Vegas Strip continues generating profit.Atlantic City market for casino is not pleasant after loss in profit of 3 consecutive years.Macau is growing and generated more revenue than Las Vegas Strip.Singapore c ould be a new growing casino market in South-East Asia.Legalize an online gambling is an ongoing process.Casino Market Oligopoly Market CompetitionIn 2009, the casinos industry had revenue in total of $US 21.8 billion. To determine an economic competitive type of market in the industry, the company uses a four-firm concentproportionn symmetry as the indicator. The symmetry is the helping of total industry sales made by the four largest firms (Fig. 4). The four-firm proportion for the casinos industry is approximately 70%, which had created an oligopoly form of market competition. In oligopoly, one firm decision can have a direct influence on demand, price, and profit of competitor in the industry.Figure 5 Companies in the casino industry by revenueFurthermore, international assessment of the industry is a critical process for management in decision making. The Porters Five-Forces Model, competitive analysis tool, has been utilized for in-depth industry analysis. The model analys is is provided five perspectives in assessing the industry Rivalry among competing firms, Potential inlet of new competitor, Potential growth of substitute products, Bargaining world power of providers, and Bargaining power of consumers.Porters Five-Forces Model AnalysisRivalry among existing competitorsMGM Rivalry among existing competitors HIGHSame-size competitorsHigh congest barrierIn distinct in product and service among competitors plank x panic of existing competitorsThe competitive atmosphere in hotel industry is high. thither are a lot of competitors in industry. Furthermore, it seems that competitors compete in same dimension because in commercial casino industry, customers are not much diverse. Therefore, players in this industry appoint it hard to target varied customers with different needs There are a lot of competitors with equal power and size. Exit barrier in commercial casino industry is high because a company invests ample amount of money, especially, ed ifice cost. Even a company wants to elapse from the industry, sometimes it force to stay in because exit costs are high. Product and service in commercial casino industry are identical. Moreover, there is no electric switch cost for buyers. Thus, competitor might cut price to attract buyers. Fixed costs are high. In order to compete in hotel industry, a casino animal trainer adopts revenue management. The process allows buyers to stay in same type of room in different price. Even a hotels products and service are not rapidly become outdated but competitive atmosphere in commercial casino industry is hot, therefore, companies cannot make high profit from this industry. panic of new entrantsThe threat of new entrants for hotel and motels industry is low. The industry has significant barriers to entry which includeMGM Threat of new entrants LOWSupply-side economies of scaleDemand-side benefits of scaleCustomers switching costsCapital requirementsRestrictive government polity sic advantages autonomous of sizeUnequal access to dispersal channels plank x Threat of new entrantsSupply-side economies of scale In commercial casino industry these economies hardly appear. Even a company built more rooms or more recreations in its casino, these economies will not appear. Moreover, the company has to carry more cost, more maintenance cost and more employees cost.Demand-side benefits of scale (network effects) These benefits occur when the numbers of buyer patronize the company. However, these benefits might not occur in commercial casino industry. In commercial casino industry, a company will find advantages in location, facilities and characteristics of personal working in direct contract with customers. Therefore, having a lot of customers patronize a company will not provide huge demand-side benefits of scale.Customers switching costs In commercial casino industry, when customers purchase service from a casino, it is one time use. Therefore, there is no switchin g cost.Capital requirements In order to enter commercial casino industry, a company needs to finance huge figure and the industry return is not attractive. Thus this industry has high barrier.Position advantages independent of size These advantages are not depends on a companys size, incumbents can have competitive advantages that not available to competitors. These advantages in commercial casino industry can stem from locations, brand identities and service.Unequal access to dissemination channels It is not hard to establish or find distribution channels in commercial casino industry. A company could use agents or let customer books rooms via its websites.Restrictive government policy There might be some restriction related to commercial industry such in some area government do not allow a company to build a building that higher than 2 floors or in some countries, a company has to has citizens hold more than half of a companys shares to operate in that country. In U.S., commerci al casino industry is the most regulated and monitored industry.The threat of substitutesMGM Threat of substitutes HIGHCompetitorTable x Threat of substitutesThere are some substitutes for commercial casino such as hostels, apartments or houses. Customers can stay in hostel, apartment or houses and go to gaming or using recreation facilities at casinos. If buyers concern convenience, they might prefer casino. Because they will have maids clean their room and casinos always locate in a convenience location. If buyers concerns price, they might stay in hostel. However, if buyers concern privacy, they might prefer house. There is no cost of switching to substitute. Buyers can change to substitutes anytime if they would like.Hostels, apartments and house can be substitutes for casinos. They perform similar products and service to casinos, if you concern totally hospitality part. However, there are some differences which made substitutes have huge different from hotels. Buyers have to determine trade-off between hotels and substitutes.In this industry, the threat of substitutes is not high because substitutes have too many differences in facilities and service from casinos. Thus, industrys profitability is not suffered from substitutes.The power of suppliersIf suppliers have power over a company, suppliers might set its price higher, limit quality of service and shift its cost to other parties. In commercial casino industry, a company uses wide range of different suppliers such as supplier for construction, supplier for food and beverages and supplier for hotel equipment. There is almost no monopoly in hotel suppliers. Moreover, only a few supplies that have switching cost such as securities equipment and suppliers did not differentiate their products. The company has to differentiate itself by choosing good location, providing well-maintenance facilities and providing dogmatic service. Furthermore, the company can easily find substitute suppliers. Therefore, t he power of suppliers in commercial casino industry is low.The power of buyersMGM The Power of Buyer Table x The power of buyer There are various customers in commercial casino industry. However, there are some buyers that have ability to negotiate such as group tour. Products and service in commercial casino industry are not much different. If customers find that a hotel that they always stay in is full, they have to stay in other hotel. They have to purchase products and service in some hotel anyway. Buyers have no switch cost. If buyers want to change from a hotel to a hotel, they can just check-in to another(prenominal) hotel without any switching cost. Buyers cannot produce industrys product if buyers found that a hotel is too profitable. Buyers can switch to other hotels but they cannot produce it by their selves. In commercial casino industry, buyers do not shake up with brands. Buyers might concerns about quality of product and service. If they find another casino that che aper but quality and facility are same, they will switch to another casino. In sum, in commercial casino industry, buyers are relatively price sensitive.From analysis given above, buyers in commercial casino industry have high power and seem to be price sensitive. They can press companies to lower their price and can ask for more quality and service. pecuniary and Accounting AnalysisThe financial information was published annually to external and internal users.MGM Mirage Inc. financial statements had been analyzed using financial proportionality analysis and information in management discussion. The median number of industry ratio in 2009 is used in this report. By the nature of hotel business, MGM contains a high fix-cost in normal business effect and profits are goaded by tourism and business travel demand. MGM requires a large smashing to run its hotels and casinos. In 2010, MGM is in process of development a City Center, a capital intensive driven project. The delayed of Cit y Center project has enormous impact on MGM financial statement.Liquidity and Financial PositionCredit Risk Facing BankruptcyAs of declination 31, 2009, MGM is in a weak financial position because of its indebtedness.MGM with reference work rating of CCC+ operated the business with 39% on the long-term debt. The management team declared unpleasant statement about the $1.1 billion senior credit facility debt which might be defaulted on maturity date in 2010. The management suggests that MGM must extent the payback period by negotiating with their creditors. Also, management has predicted that future revenue from operation and tax refunds would help reducing MGM debt. The current and truehearted ratio indicated that MGM has had insufficient fund to operate its casino since 2005. With the ratio less than 1 and below the industry average in both(prenominal) current ratio and quick ratio, MGM has been operated on the line of bankruptcy if the company defaults on its debt.Revenue base and mixMGM primary source of revenue came from Las Vegas Strip. As December 31, 2009, the majority of MGM revenue came from three sources casino (44%), hotel room (23%), and food beverage (23%).Casino revenue dropped 12% from 2008 and it had been on decline trends since 2007. In 2009 MGM financial statement, revenue from casino had been divided into three sub-categories Table secret plans (36% of total casino revenue), Slots (60% of total casino revenue), and Other revenue. The table game revenue decreased 11%, even though there is 33% increases in demand for baccarat.Sustainability of revenues and earningMGM profitability ratios are negative in 2010 and 2009 for some ratios. ROA in both 2009 and 2010 are negative. We can break ROA to net profit margin multiply total assets turnover to deepen our analyzing. Assets turnover ratio shows MGMs ability to use assets generate revenues. MGMs assets turnover ratio decreases from 2007 to 2009. Even this ratio does not decrease much during 3 year period, it made ROA go down. The main factor that has impact on ROA is net profit margin. The MGM has very low net profit margin since 2008. MGMs bad signal shows since 2008. After its net profit margin ratio plunge to -11.86% in 2008 and -21.61% in 2009 which a major factor lowing ROA. From analyzing ROA, we can see that MGM has a problem with maintaining its profit margin. MGMs revenues in 2008 are not much different from 2007, however, MGM cannot control operating expenses, operating expenses in 2007 exceeds revenues. In 2009 MGM revenues decreases by 17%, further, MGMs ability to control its operating expense decreased. MGMs operating expenses in 2009 is 114.65% from revenues. The major increase in operating expenses in 2008 and 2009 is property transactions. MGMs ability to fulfill its short term obligation is getting better in 2009. Both quick and current ratios go up. The reason both quick and current ratios increase because in 2009 MGM carries more cash. However, MGM debt management ratios worsen. Long term debt to equity ratio increases from 2007 to 2009 results increase in total debt to equity ratio. These ratio shows MGM has larger portion of debt compare to equity. Even MGM carries more long term debt recently MGM has interest coverage ratio high enough to pay back its interest. merely this ratio trend increase in recent year.Hotel operating statisticsStrengthsStrengths various(a) portfolios of products and servicesMGM mainly operates casino resorts which include gabling, hotel, restaurant, entertainment and retail. The main operation is in Las Vegas, Nevada, the world famous gambling and entertainment center. Properties in Las Vegas include CityCenter (50% owned), Bellagio, MGM Grand Las Vegas, Mandalay Bay, The Mirage, Luxor, New York-New York, Excalibur, Monte Carlo and Circus Circus LasVegas. MGM operates outside Las Vegas includes casinos in Michigan, Mississippi, New Jersey and Illinois. Not only operate in U.S. but MGM also own 50 % MGM Grand Macau ownership. Because each MGMs casino offers different theme, amenities such as restaurants, spas, private gaming and swimming syndicate facilities and difference pricing to target each customer segment, MGM enjoy competitive advantages over competitors. Moreover, MGM is continuously reinvesting in its business to keep this competitive advantage.Strengths-Strong vane RecognitionMGM operates in tourism and leisure sectors which are gaming, hospitality and entertainment in two continental. MGM offers different casino for different segment, therefore, casinos brand that are operated by MGM are recognized by people all somewhat the world. Moreover, Forbes Travel Guide bestowed AAA five-diamond awards to Bellagio and MGM Grand in 2010.Strengths-LocationMGM has properties in the top destination for traveler to go for gaming and entertainment. MGM has 10 casinos in Las Vegas, the world largest gaming and entertainment center and has MGM Grand Macau in Macau, the world se cond largest gaming and entertainment center. The reason behind this selection, these two places are the major tourism destination not only for gaming activities but alson