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WYNN resorts are luxury hotels and casino destinations. WYNN resorts are public limited corporations which are traded as operators and developers of large, high class casinos and hotels. This simply means that the WYNN resorts mostly target affluent and high class people who want nothing less than the highest quality. In this case, the resort uses different marketing strategies in order to ensure that services offered to clients are of the highest quality. This paper seeks to discuss case analysis concerning WYNN resorts and the prospects which affect or promote them.
WYNN Resorts Analysis
WYNN resorts are aggressive corporations which fight hard to maintain high ratings in the market. In this case, WYNN resorts engage in operations, constructions, financing, developments, and designing casinos and high tech hotels. The business was founded on immense passion and a strategic picture of the same. It is necessary to note that the corporation developments are high including the facilities which range from lavish night life, diamond suits and private entry villas amongst many other high tech facilities. The WYNN resort uses a high brand image by providing high quality products and services. In this way, it is known as a luxury casino company with an appealing reputation and high end market. WYNN resort operating license is the company’s key resource which allows and gives the company a right to open and develop unlimited number of hotels and casinos (Ireland, 2008). The WYNN resort has also employed qualified, experienced, and excellent staff who ensure that the customers have the ultimate experience in hotels and casinos. In this case, the WYNN resort has remained one of the best high tech resorts since the years of its foundation till the present days. The company still remains at the top of the chart in the resort markets. However, during the last years, the company is facing many challenges tat come from the economic situation and its competitors.
WYNN Resort History
The WYNN resort was first formed in the year 2002 by Steven Wynn who was the former Chief Executive Officer of the Mirage resort. The founder got most of his ideas and knowledge from his gambling experience in different casinos. In this way, he helped to create the most luxurious and high class casinos in Las Vegas. After intense development, the WYNN resort first introduced its first creation on 28th April 2005. In the year 2008, the company was successful in developing a full resort on a 217 acre piece of land. The resort had up to 2,674 hotel suits and rooms, 6 private villas, 36 fairway villas, 18 restaurants, 18 hole golf course, and more than 137 table games. Starting from its foundation, the WYNN resorts company has been committed to providing superior and high class level of services, high quality services and amenities, and elegance for all its customers. On 4th September 2009, the WYNN resort was incorporated as a limited liability company (Kurtzman, 2010). Presently, the company is owned as a subsidiary of WYNN resort limited and directly as a subsidiary of WM Cayman holdings limited. This became effective in September 2004. From that time, the company was formed to date; the company has earned and developed the finest casinos and hotels in Las Vegas and other parts of the world.
Recent and Current Status of the WYNN Resort
It is necessary to note that the WYNN resort is doing well financially in relation to the current economic inflation. This is because the company is in a position to pay off any obligation or debts by using conservative measures or the company’s current assets. This is because the company has a current ratio of 2.13. In this case, the company has more room to grow and develop. However, there has been news saying that, in the previous years, the company has experienced low profit margins and had problems with the managing costs within the company. This is evident from the profits between the year 2006 and 2007. However, according the operating costs and cost control measures in the recent years, the company has increased significantly.
SWOT Analysis of the WYNN Resort
The SWOT analysis of WYNN resorts clearly helps to reveal the position of the corporation. The company has much strength in terms of revenue growth. The WYNN resort’s strength is evident from the 8.3% revenue growth, the current $1.7 billion which has been achieved from the 30th September 2008. In this case, it is evident that the company uses a unique and workable approach in the overall appeal providing high class services to customers and has an attractive and strong balance sheet.
The company has also a lot of weaknesses. However, most of the company’s weaknesses are related to the economic situation in the current times. Nowadays, the company has experienced up to 79.7 % drop in its occupancy. This is because of the experience incurred due to cutting of extra or personal costs; luxury brand is extremely expensive. It is amusing to note that most of the company’s opportunities are based on new markets such as China’s markets. This is because of the rapid growth of the middle class and the spread of high quality services and goods. These new markets present a new set of opportunities to dig and tap in them.
The WYNN resort faces many numerous threats in relation to the current economic situation and competition. This is because some of the resort markets are overpopulated and saturated with hotels and luxury casinos. In this case, the WYNN resort faces constant threats from the competition in the industry which is better and new. The entrance of new competitor into the markets has pushed the WYNN resort to taking inefficient initiatives such as reducing the number of employees.
WYNN Resort Competitive Landscape
The WYNN resort company has developed a competitive landscape in order to keep up with its competitors. In this case, the company focuses more on maintaining staff on a full time basis. This is in order to avoid firing and employment costs. The company has also taken efficient initiatives of reducing weekly working hours and employees’ salaries. In this way, the company hopes to save close to $75 to $100 million every year. However, the company realizes that these initiatives are only short-term. This simply means that these are only alternative short term solutions (Smith 2001). In relation to the company’s competitive landscape, it intends to put more weight and concentration on the new markets such as the Chinese markets. The WYNN resort future initiative is to develop new resorts in new markets and establish the company’s growing economy in the new markets. The WYNN resort is also focused on advertising and marketing national scale efforts. It is necessary to note that WYNN resort’s competitors are also trying to survive in the current economic situation.
WYNN resort in conjunction with its subsidiaries for many years has been engaged in operation of casino resort destinations, development of casinos and hotels as well as operations of the same. The company has employed more that 16,400 full time employees in its service sector. This does not mean that the company has not faced any challenges but rather means that it has used unique strategies to stay above despite the challenges and crisis. The company has seen an increase in its revenue growth since the year of its foundation.