Boyd Gaming Company is one of the world’s top gaming and entertainment companies with annual profits averaging over $6 Billion in the recent 10 years. The three top competitors Boyd faces are Cesar’s Entertainment, MGM Resorts and Las Vegas Sands.
Tropikana Entertainment and Station Casinos also present the main other competitors but for the purpose of this essay, we shall focus on MGM Resorts, Cesar’s Entertainment and Las Vegas Sands due to the fact that they share similar strategies and operate in the same markets. MGM Resort is Boyd’s number 1 competitor and boasts over 31293 more employees than Boyd (Blakeley 2006). It was founded in 1962 in Las Vegas Nevada. Cesar’s is also located in Las Vegas but was founded several years earlier than both MGM and Boyd. Cesar’s was founded in 1037 and boasted a much better market penetration than both MGM and Boyd due to its experience in the gaming industry in the United States. Cesar’s annual revenue stands at $7billion slightly higher than that of Boyd’s. located in Paradise, Las Vegas, Nevada, Las Vegas Sands has a revenue of $14.5 billion with a net operating income of $4.5 Billion in the 2014 financial year, which.
- Physical Resources: Boyd Gaming has a well spread of gaming outlets spread throughout America. Of the three companies, Las Vegas Sands has the most number of gaming casinos spread throughout the United States and the World. Though these facts also increase the operating costs, it has given Las Vegas Sands a more stable presence in the world as compared to the other two.
- Financial Resources: Las Vegas Sands boasts over $14.4 Billion in revenue compared to MGM’s $9.5 Billion, Cesar’s $7Billion and Boyd’s $2.4Billion in revenue per year (Lenhart, 2017). Domestically and internationally Las Vegas Sands retains the top spot in financial revenue.
- Human Based Resources: Boyd Gaming has around 19707 employees, whereas MGM has thrice that at 51000 fulltime employees. Cesar’s has 65000 whereas Las Vegas Sands has 50500 employees. The fact that Boyd has less than a third of its next rival’s number of employees and earns a third of the revenue shows a direct correlation between number of employees and revenue. However, for Las Vegas Sands it shows a higher return/productivity per employee and this is indicative of non-human based resource potential.
- Knowledge-based resources: Boyd is lagging behind in knowledge based resources as it has been unable to post impressive numbers on its flagship apps and platforms. So far Las Vegas Sands leads in innovation followed by Cesar’s.
- General Organizational Resources: Boyd has the second best CEO scores in the industry, and this shows a more employee based management strategy than one entirely focused on turnover. Boyd has focused on quality service provision and though this means they have far fewer locations, they still pay their employees better and have above par facilities.
Critical Success Factors
- Location: Las Vegas Nevada is the capital of Gaming in the United States and arguably in the World. Boyd’s headquarters in Nevada gives it a good advantage over other global-leaning competitors.
- Services: Boyd promises a more family oriented service catering to larger groups of town-people than on international gamblers. This gives it a more ethical appeal over its competitors such as Las Vegas Sands and MGM.
- Brand Portfolio: Family oriented focus remains Boyd’s Critical selling proposition. This earns it a more conservative niche of clients.
- Technology Utilization: Boyd is beginning to institute technology in its services further cementing its friendly and approachable type of service delivery.
- Marketing: Boyd markets to unconventional groups such as churches, women groups and seminars further make it the most approachable amongst its competitors.
- Brand Strength: An average brand strength means that Boyd can leverage on the poor industry outlook to present a more positive view of the industry instead of one leeching on people’s earnings.
- Target Market: Boyd focuses more on millenials and family-oriented groupings rather than on cut throat executive markets, and this has proven critical in the sharp economic outlook.
- Rooms: Boyd has separated its hospitality from its gaming services presenting a more diverse service outline capable of attractive a wider array of consumers. Its rooms cater to all types of travellers and gamers.
Boyd Gaming Corporation (BYD) has been in existence for almost four decades since it was founded in 1975. The company has dominated the hospitality and casino industry in America and in the process it has gathered a reputation that has given it a competitive edge. BYD is headquartered in the state of Nevada and is said to currently ow over twenty five hotels and casino all over the United Sates of America. Under the leadership of the CEO, Keith Smith the corporation has become a leader in the entertainment business receiving accolades from the government for its compliance with ethics. The hotel industry is highly competitive and it comprises of several major players who are threatening the positioning and market share of BYD in Nevada and other locations. Although Las Vegas is a popular destination for tourists both from America and beyond borders, there many hotels in the region willing to take advantage of the influx of people and revenue. It is in the best interest of BYD to research the market to ensure that they improve on quality of services and the overall consumer experience as a way of staying ahead of rivals.
At the end of 2017, the firm reported annual revenues of $ 2 billion, which are strong numbers given the state of the economy. The enterprise has employed almost twenty thousand members of staff and is publicly traded in the NYSE. MGM Resorts is one of the primary competitors of the BYD and the hosting of major boxing events has boosted its influence in the market. The MGM was opened in 1987 and has grown over the years acquiring several subsidiaries in Nevada and across stateliness. It is currently headed by James Murren and the main office in the state is the area of operations. According to the statistics, has a net income of almost $ 10 billion with over seventy thousand workers working for the hotel and its subsidiaries. It is also a public company and is traded in the NYSE. The MGM has been associated with one of the best accommodation and gaming facilities in Las Vegas making it one of the preferred destination of tourists looking for the thrill of the casinos. On the other hand, Carlson Rezidor Hotel Group is a global leader in travel and leisure, the company has a wide portfolio comprising of more than one thousand three hundred hotels.
Carlson tops the list when it comes to global dominance as it has operations in more than one hundred countries globally. It is a family owned company that was established in 1938 and the decades of experience has made the organization one of the formidable competitors against BYD. It has over 100,000 members of staff working to satisfy the needs of the clients as part for the strategy to maintain and grow market share. Carlson earned nearly $ 4 billion and unlike the BOYD resorts, it is headquartered in Minneapolis (Minsker, 2018). The Penn National Gaming Inc. has been operating since the earlier 1990s and has expanded over the years making it one of the players in the hospitality industry (Blakeley, 2006). Apart from running casinos, the Penn National Gaming Inc. also owns racecourses tapping into the game of horse racing in America taking advantage of the growing industry. The firm is listed at the NYSE and has the headquarters in Wyoming, Pennsylvania.
Blakeley, K. (2006). Boyd Gaming. Forbes, (1).
Lenhart, M. (2017). Going all in: Boyd Gaming raises the stakes on the Vegas Strip with a new mega-project. Successful Meetings, (4), 36.
Minsker, M. (2018). Gigya gets gamification: Boyd Gaming uses social infrastructure to nurture engaged advocates. CRM Magazine, (11), 48.