Customer Relationship Management: Harrahs Business Strategy

Introduction
Within the past 20 years, Harrahs has developed from a small gambling company to the second largest in the indus audition. The word is base on the study of Harrahs Case, and tries to track the family relationship between the management of database and customer relationship. Firstly, the author will work Porters five forces model to analyse the opportunities and threats that Harrahs face from the external environment and what business strategy does Harrahs use. Secondly, the article will focus on the effect of the CRM carcass on the business strategy and profitability. Thirdly, author will try to indentify the function of this system and draw a conclusion on this CRM system, including its advantages and disadvantages, what kind of problem can this system solve.
External environment of Harrahs
The case of Harrahs began in mid-1990s, when many casinos emerged at the identical time and the competitions became more and more fierce. In what follows, the Porters five forces model will be used to analyse the external environment of the gambling industry and determine what is the be opportunities and threat.
1. New entrants:
The casino industry faces rising threat of wise entrants.
The capital requirements for opening a casino are in truth large.



For example, large investment is needed to obtain certain licenses, gird up a casino and buy the specialized facilities. on the whole the following factors, however, are favourable for the new entrants. First, the new federal and state law has replaced in US since 1990s, which permits gambling on riverboats and Indian reservations. Second, the product differentiation of the casino industry is non obvious. The essential facilities for a casino like table games and schedule machines are easy to replicated. Many small casinos can comfortably enter this market. Third, the switching cost for customers is little. It costs nothing to change the place to gamble.
Therefore, more and more competitors are emerging in the casino industry, and...If you want to get a full essay, society it on our website: Orderessay



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