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Answers To Casino Case Questions.edited

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User Generated
Subject
Management
School
Central Pennsylvania College
Type
Homework
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After reading the case on US Casino Gambling Industry please type in your answers of around
200 words for each of the 5 questions listed below.
PLEASE HAVE THE QUESTION ON THE TOP AND LET YOUR ANSWER FLOW FROM THAT AND
COMPLETE YOUR ANSWERS FOR THE CASE IN NOT MORE THAN 2 PAGES SINGLE SPACE!
1. Who are the buyers in the Casino Gambling Industry? What do they buy? What
do you think about the bargaining power of these buyers? High/Medium/Low?
(Choose one)
The concentration of purchasers is evident in Las Vegas and Atlantic City. The
buyers comprise of the general public. Still, more so are the tourists and party-
goers who find it more interesting to engage themselves in the gaming world both
for fun and for generating an income, the tourists are usually the wealthy being
ferried in by airlines or automobiles with no apparent age as depicted in the old
days; where gambling was a thing for the old, demographic changes and market
patterns in the United States have also shifted to Gen X and the Millennials. They
are also part of the industry buyers amid the recent activism by churches,
organizations, and ad hoc citizens, discouraging the youths from being buyers in
the industry. The buyers are engaged in gambling activities, including coin-fed
machines and table games. Here playing is by chance on video poker machines
with an element of skill such as roulette, craps, and blackjack. The buyers do not
set the prices of the winning prize, therefore, lacking control of the industry, their
bargaining power is medium as they also take part in playing the game without
which the prize cannot be realized, and even other substitutes to the industry are
available such as the Native America casinos and riverboats.
2. Who are the suppliers in the Casino Gambling Industry? What do they supply?
What do you think about the bargaining power of these suppliers?
High/Medium/Low? (Choose one)
Entertainers are the biggest merchants in this trade, comprising of a more
significant bargaining power since it's hard to find a casino without the
entertainment industry as a complementary product and a service, they supply
the industry with an environment conducive for attracting buyers who quench
their thirst for entertainment, with the wake of technological innovations, another
group of suppliers to the industry are website developers and suppliers of other
tech-equipment such as the International Game Technology (IGT) designs
responsible for the architecture and supply of gaming equipment, tech-support
services and other systems related to the industry. Most of these suppliers, such
as IGT, have little influence on the industry as more tech giants are coming up
with the same technology serving the industry hence have low switching costs,
with most of them being small companies with less supply power and dominance
in the market. The suppliers have very little businesses in other industries;
therefore, they have no option but resolute to the industry for their purchases,

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which do not tend to be expensive and easy to find from other suppliers in the
market, therefore, low bargaining power.
3. Which new firms might want to enter the Casino Gambling Industry? What are
the barriers to entry into this industry? What is the level of threat of new entrants?
High/Medium/Low? (Choose one)
After the successful entry of Macau casinos in the industry, it is evident that there
are prospective investors who would like to reap the benefits of the industry
following that the Macau market garnered $3.7 billion in revenues, which resulted
in falling in stocks for the existing US firms in this industry. The possible entrants
into the industry are more focused on online betting amid the stiff regulations put
on internet gambling by Unlawful Internet Gambling Enforcement Act of 2006,
hindering inter-bank transfers of the buyers in the industry. The wake of online
gambling has brought about big players in the industry, such as the Las Vegas
major firms MGM and Caesars, who would like to capture the industry from the
increased use of smartphones as business devices that can be used to carry out
gambling activities with convenience. Among the barriers to entry are the
government policies such as the money transfer imposed on banks to facilitate
gambling, the activists' negativity towards the social impact of the industry on the
youths and economy in general as they decree that the money used in gambling
should be used in opening businesses and also construction costs of the venture
require huge capital, therefore, prohibiting entrants. The barriers are thus lifting
the level of threats from entry to be low.
4. Identify some substitutes for the Casino Gambling Industry? What do they
substitute? What do you think about the level of threat they pose to the sales and
profits of the bargaining power of these buyers? High/Medium/Low? (Choose
one)
The industry faces a potential of substitution from additional key players in the
market with reference to the rise of online gambling where physical visits to
casinos are likely to be substituted for online gambling; scratch-offs and lottery
tickets which enable buyers of the industry to access gambling without the need
to visit a casino for coin-fed machines and other similar activities. Other than the
online gambling players, hotels, and resorts without casinos are becoming
another attractive site for entertainment apart from the casino gambling games.
With the increased popularity of these potential substitutes, there is evident high
substitution power facing the industry as a new generation of key players in the
market takes the course, which is Gen X and Millennials embracing the tools
available in the gambling industry other than the physical gambling visits into the
casinos. Congruent to the current pandemic, the need for social distancing is
expanding this rift with more activities being carried out in online platforms where
minimal movement is of paramount importance to the spread of Covid-19.

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After reading the case on US Casino Gambling Industry – please type in your answers of around 200 words for each of the 5 questions listed below. PLEASE HAVE THE QUESTION ON THE TOP AND LET YOUR ANSWER FLOW FROM THAT – AND COMPLETE YOUR ANSWERS FOR THE CASE IN NOT MORE THAN 2 PAGES SINGLE SPACE! 1. Who are the buyers in the Casino Gambling Industry? What do they buy? What do you think about the bargaining power of these buyers? High/Medium/Low? (Choose one) The concentration of purchasers is evident in Las Vegas and Atlantic City. The buyers comprise of the general public. Still, more so are the tourists and partygoers who find it more interesting to engage themselves in the gaming world both for fun and for generating an income, the tourists are usually the wealthy being ferried in by airlines or automobiles with no apparent age as depicted in the old days; where gambling was a thin ...
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