History Wynn Resorts, LTD was formed by former Mirage Resorts Chairman/CEO Steven Wynn on October 25, 2002,

who currently serves as the Chairman of the Board and CEO of Wynn. His knowledge of the gambling and casino industry is indispensable to Wynn Resorts, as he is accredited to turning the luxury casino industry in Las Vegas into what it is today. Wynns mission is: A commitment to providing an elegant environment, high quality amenities, a superior level of service and distinctive attractions for our customers. The company currently has operations in both Las Vegas and Macau Peninsula in China. Wynn Las Vegas, the companys first development, was opened on April 28th, 2005. A year later, the company broke ground on an extension to Wynn Las Vegas, to be called Encore Suites, which is expected to be completed by 2009. While the project was initially envisioned as an expansion of Wynn Las Vegas, after it opened December 22nd, 2008, the hotel and casino quickly took on a life of its own and became a fullscale resort, and is adjoined to Wynn Las Vegas. The property, which encompasses 217 acres of land with 111,000 Sq.ft of casino, 137 table games, but also luxury hotel accommodations of 2,674 hotel rooms and suits, 36 fairway villas, and 6 private entry villas. There is an 18hole golf course, 18 restaurants, bars and nightclubs, nighttime entertainment options, an onsite Ferrari and Maserati dealership, over 76,000 square feet of high-end retail space, and of course all the usual casino amenities, but with a layout that is unique to Wynn Resorts. Today, the company competes closely with Bellagio, Caesars Palace, Luxor Hotel & Casino, Mandalay Bay Resort & Casino, The Mirage, Las Vegas Sands, New York Hotel & Casino, Treasure Island, The Venetian, The Palazzo and Genting Highlands Resort. Porters Five Forces Competitive Analysis We have performed industry analysis with respect to Wynn Las Vegas and Wynn Macau In Las Vegas The competition is moderate. There are many competing hotels, but the market, after some consolidation, resembles an oligopoly. The competitors also have significant investments in developing brand loyalty, especially among the high-rollers. The threats to new entrants are largely related to the location of the property, brand loyalty, and gaming licenses that are awarded by the government. This is relatively high in this industry. So Threat of new entrant is low.

The bargaining power of buyers is muted by high degree of differentiation among competing properties, resulting in some brand loyalty. In the case of entertainment, leisure, gambling customers want luxury most of the time. It goes in the favor of Wynn Resorts. The bargaining power of suppliers (mostly service staff, specialized gaming infrastructure and equipment) is low. But Wynn resort is positioning their resort on the basis of customer service by hiring the best employees in the industry. The threat from substitutes is moderate. Also the resorts are trying to have lots of facilities which will reduce the needs of substitutes. In Wynn Las Vegas they have a golf club which is the only golf club in Las Vegas Strip. In Macau The intensity of competition is lower because the government strictly controls the award of licenses, which also acts as an entry barrier. The threat of new entrants is moderate. Macau casino industry is at a growing stage at present. May be the government can give more license to the new companies. The bargaining power of buyers is low. There is not that much good option of gambling destination in Macau for the high end gamblers. Power of supplier is moderate. As example, Macau government enforced strict regulation to hire an executive director who is a permanent resident of Macau and hold at least 10% of companies stocks. They have to approve all contracts for the management of the casinos operation in Macau. The threat from substitutes is low. Macau is well known for gambling. High-end customers have no other real life substitutes of casino and gambling as the source of entertainment. To conclude, Casino industry runs on the basis of customers spending. It is a kind of spending pattern that cannot be easily influenced. Steve Wynn knows it very well and with his experience in this industry for long time he positioned his company smartly among the loyal customers. The competition among the rivals is moderate because every resort is targeting different customer segments. Steve Wynn has differentiated his resort from others successfully. The threat of new entry is low as he is spending more in building new facilities for the high end customers. Encore is going to be more luxurious than the present one. He is giving signals to the potential new entrants that they cannot beat Wynn Resorts easily. Bargaining power of customers is low in the industry. He positioned Wynn Resort among the high end customers those are not that price sensitive. For the better service they are willing to pay more. Also in the time of recession the spending pattern of the high end customers do not changes a lot. That is why Wynn Resorts

profit is higher than the industry average. The bargaining power of suppliers is moderate as he has taken the opportunity and tried to capture the best input (e.g. staffs, employees) in the industry. The threat from substitutes is low and Steve Wynn tried to put as much as alternative ways of entertainment in his resort like luxury shops, night life, Ferrari and Maserati dealership, and the owner of only golf course in the Las Vegas Strip. This kind of policies reduced the threat of substitutes. Those who will gamble will not be affected very much by other alternatives that Wynn Resort dont have. So it is visible that Steve Wynn has smartly positioned his company in the industry and has defended and takes advantage of all the competitive forces. Unfortunately some forces are not in the control of the industry. This industry is an uncertain industry. There should have a contingency plan. No plan is guaranteed that will work for long term except the basic plans. The competitive forces are hugely influenced by the Macro Economic environment. Also macroeconomic environments are not same in the whole world. It is different in different parts of the world. As Wynn resort is doing business in Las Vegas and Macau, they are exposed to different macroeconomic environment. Due to changes in the macroeconomic factors, it effects on the competitive forces. Strategists always have to think more about the macroeconomic factors sharply. Macroeconomic factors are also important in case of Wynn Macau
PESTL Analysis

Political: The casinos that are awarded licenses compete actively among themselves to build a
successful franchise. The licenses are given for a fixed period and need to be renewed which introduces uncertainty for the company. Threats of terrorism, strict visa policy can also affect the industry adversely. Currently, Chinese government does not allow casinos on its mainland but if it allows then industry may face new competition. At present, the government of Macau is trying to make Macau the tourist destination point of Asia. Moreover, Macau government has huge control over Wynn Macau and gave many restrictions.

Economic: Since, gaming and associated hospitality is largely a discretionary product, the
industry is subject to volatility of economic cycles, both in the US and Macau. Chinese economy is on the rise and that the population is becoming increasingly educated and wealthy. This can play positive role for Wynn Macau. Airline fuel costs also play a vital role in this industry.

Social: On the positive side, there is a growing social acceptance of gambling in the US, and an
increase in the proportion of elderly is likely to favor gaming and gambling as well. Social norms in US and in Macau are different.

Technology: Technological change like online gambling or any other forms of gambling can
change the Threat of substitutes badly.

Legal: Chinese government policies and regulations may be dictated in the future about the
pace at which it wants this industry to grow, based on its perception of social costs of gambling.

Strengths Wynn Resorts competency flows primarily from Steve Wynns instincts and vision. Steve Wynn himself is the major strength of Wynn Resorts as he has more than 30 years experience in Las Vegas. This man has contacts, alliances and knowledge that could not be easily replaced. Wynn resort brand is synonymous with luxury in the casino market. Wynn focuses on strategic development of its product - luxury, high-end product, high brand value and high-end customers along with differentiated its services towards segmented market. Other competitors are not doing as well as Wynn Resort. The company knows how to take care of high-end customers, and keep them loyal to the brand. High-end customers feel pampered and relaxed, and they definitely seem to believe that the visit to Wynn Resorts property is worth it. This translates into millions of dollars of revenue at high margins for Wynn Resorts. The tip-pooling system, which enables supervisors and dealers to share in the tips, and enables experienced dealers to become supervisors without any loss of income. Wynn has an experienced management team, who are working to build quality resorts and ensures the resort continues to build world class operation. Wynn operates in premiere spot on Las Vegas strip, and home to the only golf course in Las Vegas strip. Wynn is also the holder of one of only four licenses in Macau. Also Wynn obtained significant portions of land in middle of all the excitements in Macau and Coati. Having such scarce resources provides the company with remarkable advantage. As Wynn resorts targeting same customer segment, high-end customers in both Wynn Macau and Wynn Las Vegas, they can use cross-marketing strategy to offer customers to travel and vacation in other parts of the world. Encore Diamond Suites are currently in development and will be located on the Strip, adjacent to Wynn Las Vegas. The Encore at Wynn Las Vegas will be superior to Wynn Las Vegas in luxury, amenities and price. Huge number of high end loyal customers who are brand loyal. Wynn resort has a huge brand value.

Weaknesses

Wynn Resorts completely dependent on Steve Wynn. If Steve Wynn left the company from any reason other than death or a severe disability, the resort would lose all lines of credit. Wynn only focuses on high-end customers, missing a large customer base of middle income clients. As Wynn charges high price, as a result they increase rates at a slower percentage than all other competitors on the Strip. As an example, Wynns average room rent increased 4.4% from 2005 to 2006, whereas competitors rate increased from 5 to 9 percent in that year. Products of Wynn Resorts are non-compulsory. Therefore, propensity to sale these products are subject to volatility of changing in consumption pattern, both in the US and Macau. Wynn Macau is subject to strict regulatory controls by the government of Macau, which limits its freedom of operations and creativity. In Macau, their license will be expired on June, 2017 so making long term plan is difficult for them

Opportunities If regulations in Macau changes positively and taxes are lowered by government, Wynn resort would be able to retain more of its profits. Demographic changes, such as- aging population, who are healthy and wealthy are willing to spent on fun and recreations. Gambling is now socially acceptable and fun recreational activity in many countries which was previously negatively tied to addiction and corruption. So, Wynn can enter into new market where social norms are positively changing in favor of the company. As few competitors are merging and changing its target market from high-end customers to middle-class gamblers, this could result in additional revenues for Wynn as these high-end customers may switch to Wynn for higher-class amenities. If other countries of the World allow such licenses as allowed by China (Macau), then there would be an enormous growth opportunity for Wynn, as Wynn has giant experience in the business and have strong customer base. Wynn is currently looking for possible resorts in the Philippines as well as expanding into new markets such as horse racing. If the Chinese government loosens its restrictions on travel and currency movement for Chinese citizens, tourism to Macau will grow, and profit potential for Wynn resorts will increase.

Threats Increased global and local competition becomes great concern for Wynn resorts to sustain its high brand image to attract new customers and retain whale, customers. In the resort casino industry, the ability to find land and licenses in legal areas is very difficult because many countries have strict regulations about gaming resorts. This can be a barrier to expand their business by entering in new markets. If any government relaxes the laws then Wynn resort may face more competition. The concession period for Wynn in Macau will expire in June, 2017 at which time Macau government has the right to take over the operation of the company. By doing business in Macau, which is an emerging market, there are significant amount of political, economic and social risks for Wynn Macau. In Macau, if government doesnt give them more concession then they will be at risk of not collecting debts. But the company has to pay tax on gross gaming revenue, not on net income. They have to pay tax for the gross revenue even if the income is not collected. Moreover, they have to pay tax even if they incur loss from operation in a given year. United States introduced stricter visa and passport requirement due to possible terrorisms after terrorist attack in September 11, 2001. Therefore, they are losing prospective customers from around the globe. Day by day employee talent pool is decreasing in Macau as the industry is becoming more competitive which could hamper future expansion plan of Wynn Macau. Strict immigration laws could be big threat for them if they cannot arrange visas for qualified immigrant workers. Coati project takes longer to come through Chinese governments policy restrictions

Corporate Strategy Wynns mission is: A commitment to provide an elegant environment, high quality amenities, a superior level of service and distinctive attractions for our customers. The product that Wynn sells is a luxury destination experience that makes customers feel pampered and valued through high quality amenities and customer service. The lavish experience allows consumers to justify spending significant amounts of money gambling, dining, drinking, and shopping and at the spas. The company strategically developed the Wynn brand name to be synonymous with high quality goods and services. Continuous promotion of the brand is part of Wynns overall company

strategy. The packaging of the Wynns product is the glitz and glamour of its hotels, casinos, restaurants, and shops (such as a Ferrari and Maserati dealership). This strategy is working for them as they are differentiating Wynn resort from others. Their target customer have the capability to fly everywhere in the country and dont change their spending pattern in the time of economic downturn. They have positioned themselves where the competitive force is low and captured the loyal customers. They can change their strategy to capture middle income clients but that would not be good for the company in long run. Because middle income clients change their spending pattern very fast and that will put Wynn Resorts more in uncertainty.

Business Strategy Wynn Resorts business level strategy is focused differentiation with an emphasis on customer responsiveness. It caters to high-rollers who are comfortable spending large amounts of money at casinos and want the best. Wynn Resorts has developed services that provide them with the ultimate in personalized attention including complimentary use of luxury cars and lavish suites. Wynn Resorts provides the feeling of exclusivity and offering intimacy and privacy to its customers. Wynn Resorts forgoes other customer segments to service only the high-end customers, focusing on niche marketing strategy. Steve Wynn is personally involved in all aspects of floor operations including the concept of tip-pooling, an incentive system for dealers to become supervisors. His presence on the floor motivates employees to perform at their best, and allows him to model his vision of customer responsiveness to his employees. His presence keeps employees honest, hard-working, and engenders their trust. Steve Wynn pays close attention to his best and frequent customers, knowing them by name and remembering personal details. He uses his passion to build loyalty from both customers and employees. Wynn Resorts incentive system, especially tip-pooling, provides incentives to experienced dealers to become supervisors, and provide the best service to their customers to earn higher compensation. Recommendation: Future success of Wynn Resorts Ltd. is not guaranteed. There are many challenges and uncertainty in the industry. The situation can change easily if any macroeconomic factors change. Also Wynn Resorts position internally is not that strong. There are some recommendation to cope up with challenges, threats, and weaknesses. In the gambling industry license can easily give competitive advantage to any company. A key resource in the international arena is Wynn Resorts operating license in Macau. It is likely that if Wynn Resorts runs its casinos well, and exceeds government expectations in terms of revenues and fees, than by renewing their license Wynn Resorts could enjoy a great franchise in the largest gambling market in the world.

They have to find out new ideas to pamper their high end luxury customers and to maintain them as before. That loyal high end customer base will increase day by day and will act as competitive advantage in long run. They should also retain their employees also in the downturn. Because this are the employees who will take care of the customers. If they are not secured in the company then they cannot take care of the customers. Good talented employee pool will act as their competitive advantage and as a backup if Steve Wynn left the company. Wynn Resorts Ltd. Should try to get gaming license in any other Asian Countries like philipine or Singapore to create a backup and capture the high end customers of Indonesia, Malaysia, Brunei, Thailand. This resort may not catch the Chinese high end customers as Macau is nearer to them but this investment will act as backup if the government of dont extend the license. If they dont extend then Wynn resort could easily take away those high end customers from Macau as they are more brand loyal. This threat will enforce the government of Macau to renew the license. In the Wynn Coati they should involve lots of substitutes of entertainment like artificial beach, artificial mountain, horseracing, floating villas, etc. those features will attract more non gaming customers and the gaming customers will want to stay more in the resort if the environment is more beautiful. They have to make something for that more tourists will go to their resort to stay. Than the value of Wynn Macau and Wynn Coati will increase and because of the dependency of tourism the government of Macau may give them concession of license. The industry in Las Vegas in concentrated and Industry in Macau is growing. They should take the advantage of it. Without neglecting Wynn Las Vegas they should give more emphasis on Wynn Macau as Macau very soon will be the major gaming market and it has less competition and chances of growing more rapidly. They can shift their head quarter to Macau to show respect Macau and to improve the economy of Macau which their government wants. They can also do CSR activities in Macau to create more brand loyalty. They can make a training school at Macau to train the local employees with international standard. Wynn Resort could open a non gaming resort in other Asian countries preferably in China or in US to give protection on the profits of Wynn Resorts if they cannot get extension of license in Macau. They can also invest in additional gaming or related business in other markets both domestic and international. Wynn Resorts. Ltd has to have good relationship with the governments in which country they are working. Only Steve Wynn can make sure the future of the company and of his dream. He should deliver his knowledge and experience among the executives of his company. So that after him they can run the company. Steve Wynn knows that no one is near to him and for him Wynn Resort is so successful. So he should bring Wynn Resort that high and make huge

loyal customers so that even if he died than also with the simple formula Wynn Resort can run successfully. He can also give duties to the executives and monitor them if they are able to run the business successfully. He can also decentralize the decision system. But actually it would be very tough to lose of Steve Wynn.
Doing Business globally by knowing the cultural differences in different country

Back Up Strategy: Its a kind of contingency recommendation. They can easily catch middle income customers by building another resort with lower operating cost and facilities. By the brand name they can easily capture the market. But their reputation with the high end customers will be at risk. We are suggesting this recommendation only when Wynn Resorts position will be vulnerable.

Conclusion: By analyzing the case study we have found out the strength, weakness, opportunities, threats, and challenges of Wynn Resort Ltd. Steve Wynn has positioned his company smartly according to the porters five forces but some changes in macroeconomic events are not in his hand. So the company is facing many challenges. We have provided some recommendation to Mr. Steve Wynn. But he is still alive so we can be assured that he is going to overcome all the challenges and will continue to grow.