As of 2001, there were more than 13 casinos operating in Australia (ABoS, 2001). Still few of them can compete with The Star, the second largest casino in the country. In fact, this diversified entertainment complex has become one of Sydney’s major attractions and is frequently visited both by national and foreign customers.
Before global crisis, the casino was the source of gross revenues and major public attraction. In 2009, it underwent significant changes that were initiated by The Star’s owner, the Tabcorp Holding Limited. Despite those changes aimed at increasing “The Star’s” economic efficiency, that entertainment complex continued to experience severe business problems, including termination of its license in 2012. Though the latter was finally extended, it is now obvious that The Star requires new strategic plan that can improve its image and help to win customer loyalty.
The objective of this paper is to provide comprehensive analysis of micro- and macro-environmental factors that influence the development of The Star’s business performance. Furthermore, it will present STP analysis aimed at defining the casino’s strategic aim and shaping its target segment. Later, the paper presents new marketing plan, which is supposed to facilitate strategic objective of the entertainment complex.
The Star Sydney Casino & Hotel is the subsidiary of the Tabcorp Holding Limited and is rated as Australia’s largest entertainment company. It was opened in 1995 and became the second largest in the country after Melbourne’s Crown Casino. The Star Casino is located on Sydney Harbor and is the only legal casino in New South Wales (tabcorp.com.au). Nowadays, its diversified activity includes operating of 200 gaming tables, 2000-seat Lyric Theatre, and 480-room hotel.
In 2009, Tabcorp Holding Limited launched the Project Star program, the main aim of which was to facilitate casino’s modernization. By 2012, almost 1 $ billion was invested in the project expansion. Three-year modernization of Tabcorp’s activity resulted in reopening of the substantially improved Star Sydney Casino (it was renamed in The Star (Jensen, 2011) and further split of Tabcorp Holding Limited into two separate divisions, Tabcorp and Echo Entertainment. The introduced changes aimed at increasing the holding’s efficiency and revenues.
The banking on innovation proved its feasibility.According to Echo Entertainment Group Limited annual report, the company’s revenue for 2011 reached up to $ 1,648.4. Global financial crisis, further recession, and new economic policy of Tabcorp Holding Limited imprinted upon the development and economic performance of The Star, which now has to select appropriate business strategy aimed at strengthening its position in the national and global gambling market. It is obvious that the development of strong marketing plan should be taken as the pivotal step towards this goal. The new marketing plan should, foremost, include SWOT and PESTLE analysis that provide comprehensive study of internal and external factors influencing economic performance of The Star. The application of Porter’s model is also significant to ensure comprehensive understanding of the sum of factors that shape the company’s business development.
SWOT analysis is a planning tool …