There are a number of forces which are affecting the casino gambling industry.

To be
successful, all the businesses in the casino industry require coping up with following. In analysis
of the five forces model in casino industry will tell us the entry barriers for the new entrants in
the market, exist barriers for the new business, purchasing or buying power of the customers,
bargaining power of the supplier, and the availability of the substitute products or services in the
market.
Entry Barriers
The major entry barrier in the casino industry for the small or new business is the
regulation made by the regularity bodies, and the policies of the government. There is no other
barrier of entry except the regulation of the government. The government may impose the
restriction on any one to enter the market. Along with these, in the casino industry, startup cost
foe the establishment of the business is too high and it also requires a number of resources and
assets to startup the business, so it is different than having a license for the opening of business in
the casino industry from opening a casino in it (Griswold & Nichols, 2006).
Exit Barriers
In casino industry, exist barriers are less than the entry barriers, the casino operating in
the casino industry could survive or stay in the market even they are not feeling satisfied. The
main aspect of survival in the casino market is the emotions of the customers, if the management
of the casino is treating good the customers then they have earned his or her loyalty then it will
be difficult for the client to go in other casino. In this context the emotional barriers are the main
entry barriers.
Customers bargaining power

In the casino industry the customer are having a bargaining power, to survive in the
industry the casino management is required to differentiate their services from the other casinos
in the industry to remain profitable. The major factors that bring the innovation or differentiation
in the casino are the course of action, the performance of the management and the launching of
the game (Griswold & Nichols, 2006). All these factors help the organization in making
differentiation. It is of much importance that in the casino industry the customer should not have
much information about the activities, and according to research it has cleared that the customers
in the casino industry does not know much about the activities and operations. Another important
thing to retain the customers is the reduction in the changes. The bargaining power of the
customers is also based on the availability of the other casino in that market.
Suppliers bargaining power
In the casino industry, suppliers are not having the bargaining power, because the things
or products which are required for the continuation of the business are very general, they can be
get from any supplier so there are very less bargaining power to customers. So the casino
operating in the industries could get the products at the low cost. So the suppliers are required to
differentiate their products to provide the innovative products and at low cost. The casino is
required to find the product of the same characteristics required at less cost.
Existence of substitutes
The term substitute is linked with the products having almost the same characteristics but
they differ to some extent. In the casino industry there a number of casinos operating, so the
customer have a huge bargaining power because if the customer dont like the services provided
by you, then they might go to other casino (Griswold & Nichols, 2006). We could take an

example e of the Las Vegas, there are number of casinos operating and the customers in that
market are having a huge purchasing power. Along with these the main resource of the casino is
the internet so the main supplier of the casinos is the internet service providers.
Rivalry in industry
Due to emergence of the casino market in different countries have increased the level of
rivalry for the firm operating in the casino industry. The casino industry is growing rapidly and
there are number of new entrants coming in the market so the level of rivalry in the casino
industry with the passage of time. The casino market in the Las Vegas is becoming highly
competitive market for the casino, as the casinos has shifted their focus from game providers to
the services of the rooms and hotel. The large chunk of their sales is coming from the provision
of hotel room services. The availability of other rooms in the different areas of the city has
reduced the demand of the hotel rooms of casinos, which has resulted in the decrease in the price
of hotel rooms at unprofitable levels (Griswold & Nichols, 2006).
Major Forces Driving Change
In analyzing the financial reports of the casino, it has been clear that the major chunk of
the casino revenue is from nongaming, like the provision of the hospitality services, like the
hotel and the provision of rooms for their customers. To improve the non-gaming services of
casino, technology has created huge impact on it. As change is an important aspect to retain
customers in the casino industry. So it is important that casino must have access to the market
where they could find all technological solutions. However it has been seen in recent years that
the technological companies has made the solutions of their problems and invested new products
or devices to communicate with each other.

There are number of firms who have contributed in the developing of the solution of the
guest centric technology. The strong integration of the products and services of the casino and
the dialogues with the authorities of the casino has reduced the problem arises out of the
technology. These technological innovations have increased the ways to satisfy the customer
needs and to deliver the high quality services to their customers (Griffiths, 1999). The
technology has enabled the casino operators to develop loyalty among the customers. There are
number of technological firms which have partnership to provide the technological solution to
their customers, who are the casino.
They have made different integrated packages for the casino customers to increase their
profitability and services. The introduction of the POS system which is a customer entry point
and acts as the major source of exchange of information, it also helps in reporting system. It has
been seen that a number of technology firms or casinos collectively can bring change; alone they
could not get effective results. They alone could not come up with solution, which can impact the
casino revenues. Casino could also increase their revenues by providing the differentiated
services and through the provision of high quality services. Hey could also adopt the technology
to improve the methods of marketing and services.
Global Environment
The recent trends of the casino industry have proved that that this industry has also
affected by the changes in the economic condition like the recession in the economy. The recent
decline in the revenues of the casino specifically a 2.8% in 20009 and in 2010 has showed the
negative impact of recession on the casino industry. However it has increased modestly in 2011
and its rising continuously. The major decline in the revenues was observed in the USA and the

EMEA (Eadington, 2011). The market of the Asia pacific has also faced the effects of the
recession but they grew around 50% in 2010. The same goes with the market of the Latin
America; they also had the positive growth in the time of recession. Now the revenues of the
casino industry are growing at annual rate compounded of 23.6%.