Crown Resorts: Market Entry Strategy and Industry Analysis Report

This report provides a comprehensive analysis of Crown Resorts, a major gaming and entertainment group in Australia, focusing on its international business strategy and potential market entry into China. It begins with an introduction to the tourism industry and an overview of Crown Resorts' operations, including its history, key locations (Crown Melbourne and Crown Perth), and international presence. The main body delves into the company's basic information, existing internationalization strategy, and organizational structure, highlighting its commitment to memorable customer experiences and expansion plans. A crucial element is the VRIO framework analysis, evaluating Crown Resorts' competitive advantages through its valuable, rare, inimitable, and organized resources. The report also includes an industry analysis, examining the tourism sector in Australia, its contribution to the economy, and the trends within the industry. The report concludes by emphasizing the importance of industry analysis for identifying potential risks and opportunities. Overall, the report offers a detailed examination of Crown Resorts' business operations and strategic positioning within the international market.

International Business
Capstone

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
Basic Information....................................................................................................................................3
Company’s existing internationalization strategy and structure...............................................................4
Company’s competitive advantage (VRIO framework)...........................................................................5
The Industry analysis...............................................................................................................................7
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9

INTRODUCTION
The tourism industry involves people travelling to other locations, either domestically or
internationally. The travel purpose can either be related to business or simply leisure. The
industry is growing at an exponential rate and is considered to be one of the major contributors to
the economy of a country (Acco and et.al. 2019). The tourism industry includes hospitality,
transportation, accommodation etc. This report is based on the organization, Crown Resorts,
which is the largest gaming and entertainment group in Australia. The company was founded in
the year 2007 and is headquartered in Melbourne, Australia. The key people involved in the
foundation of the Crown Resorts are Robert Rankin and Ken Barton. Within Australia, the
company owns as well as operates two of the leading resorts of Australia, namely, Crown
Melbourne and Crown Perth. The report includes an analysis of the selected company as well as
the industry in the home country, i.e., Australia.
MAIN BODY
Basic Information
Crown Resorts is one of the largest gaming as well as entertainment group in Australia
that was founded in the year 2007. As mentioned, within Australia Crown Resorts owns as well
as operates Crown Melbourne and Crown Perth, two of the leading integrated resorts in the home
country. Internationally, the company owns as well as operates Crown Aspinalls in London,
United Kingdom (About Us, 2013). The respective company falls in the category of gaming as
well as tourism industry and Australia is among the leading countries that attracts tourists from
different parts of the world either for business purposes or for leisure. Crown Melbourne is one
of the most visited destinations among the tourists with its diverse as well as dynamic facilities.
The company offers luxury accommodation as well as an award-winning dining, conferencing,
entertainment as well as shopping facilities (Bauling, 2017). Not only this, Crown Melbourne is
the largest casino in Australia. On the other hand, Crown Perth the Western Australia’s largest
tourist destinations. It offers an exceptional range of entertainment as well as tourism
experiences. A big stake of the company is held by the general public and the size of the
ownership gives the retail investors a collective power in providing their view point during the
important decisions.

These can be regarding executive compensation, appointment of the directors as well as
acquisition of different businesses. The size of the company is large because it operates across
different geographic locations. Being an important industry within the country, the tourism
industry attracts a large number of tourists each year. The company is focused on creating
memorable experiences for the customers. The staff is trained to act respectfully towards the
guests who stay at the resort (David and David, 2017). Also, the company is focused on doing
the right thing and work together as a team to deliver memorable experiences. Being one of the
largest entertainment groups in Australia Crown Resort makes a major contribution towards the
Australian economy through its different programs for corporate responsibility.
The company also offers employment to a large number of people both within as well as
outside of Australia. Crown takes a group-extensive technique to environmental sustainability,
aligning techniques and packages that further lessen the environmental impact and make
contributions to growing extra sustainable practices, focusing on three key areas: energy, waste
and water control. Crown’s environmental sustainability program, CROWNEARTH, turned into
brought with a clean aim to supply approach, plans, actions and effects in environmental
sustainability. The CROWNEARTH logo is instantly recognizable by way of managers and
personnel alike and signifies Crown’s dedication to the 3 pillars of sustainability: human beings,
planet and prosperity.
Company’s existing internationalization strategy and structure
The company is committed towards providing the customers with a memorable
experience and thus, adopts various strategies in order to do so. The respective company has
plans to internationalize its business activities in China. An internationalization strategy can be
defined as a strategy through which the firm sells or offers its products or services outside its
existing or domestic market (Khare and Hurst, 2017). Currently, the internationalization strategy
of the company is to offer a memorable experience to its customers who choose to stay at the
resort. China is a diverse as well as dynamic market and therefore, in order to expand its business
in the host country, it is important to find options for raw materials that are not too expensive for
the company. Besides this, joint venture is another strategy that company has adopted in order to
expand its business operations to the different countries. International business comprises of
various activities and internationalization is one of the major trends for organizations today.

The organizational structure of the company is matrix structure, which can be defined as
a structure with more than one line of authority. This means that the employees within the
company have clarity about their roles as well as responsibilities. This has helped the employees
within the company to collaborate with employees between different departments. Not only this,
the employees get a chance to develop new skills. This has helped the company in attracting a
greater number of people to work for it. Therefore, it can be said that an effective
internationalization strategy can help the company to run its business operations successfully in
the host country, i.e., China.
Company’s competitive advantage (VRIO framework)
Crown Resorts is the largest entertainment as well as gaming tourism destination in
Australia. There are many factors that have contributed to the company’s overall success in
Australia. VRIO framework can be used in order to explain the company’s competitive
advantage in an effective manner (Kim and et.al., 2020). The VRIO framework can be defined as
a strategic analysis tool that is mainly designed in order to help organizations to use their
resources as well as capabilities in an effective manner. The VRIO framework for the respective
company, Crown Resorts is explained below –
Resources Valuable Rare Inimitable Organized
Distribution Network ✓ - - -
Financial Resources ✓ ✓ - -
Employees ✓ ✓ ✓ -
Patents ✓ ✓ ✓ ✓
Valuable – A resource is said to be valuable if it adds value to the company and
therefore, such resources are mentioned under strengths (Introduction to the VRIO Framework,
2021). Valuable resources help the company in gaining a competitive advantage in the market.

 The distribution network of the company is one of the valuable resources for it because it
helps the company in reaching out to an increased number of customers. This further
ensures an increase in the overall revenues.
 Financial resources are also valuable for the company because they assist the firm in
investing into various external opportunities that arise. Also, the company is able to
combat various external threats.
 Employees as well as patents are also valuable for the company because they are trained
and this leads to a more productive performance of the firm.
 Lastly, patents are also valuable for the firm because they allow the company to operate
its business effectively without any interference of the competitors.
Rare – Rare resources are those that cannot be easily acquired by the competitors of a
business and are not easy to replace.
 The financial resources of the firm are rare because strong financial resources are not
possessed by all companies within the industry.
 Similarly, the employees are also a rare resource for the company because they are highly
trained as well as skilled. And this is not the case with the employees of other firms
(Pelikan, 2018). The company provides a positive as well as healthy environment to the
company in order to ensure that they don’t leave the company.
 Patents are rare because they are not available easily and thus, cannot be possessed by the
competitors.
 But the distribution network is not rare because any company can have a similar network
and also, it does not involve a lot of investment.
Inimitable - If a resource may be imitated comes right down to the how easily a business
enterprise can substitute or production out a resource.
 The distribution system is not imitable because any firm can imitate the same. Similarly,
the financial resources are also not inimitable because this would involve high cost
(Stenhouse and Schafer, 2019). The financial resources have been occupied by the
company through profits over a long time.

 Patents are inimitable because they can it is not legally allowed to imitate them. Also,
employees are inimitable because the skills as well as knowledge that is possessed by the
employees of the respective company, may not be possessed by other employees.
Organized – The distribution network of the company is not organized because it has to be
organized based on the different geographic locations of the company’s operations (Wu, 2017).
Similarly financial resources are also not organized because different countries will have
different requirements. but the patents are an organized resource because the company uses them
to their full potential. And thus, this has helped the company to gain a competitive advantage in
the industry.
The Industry analysis
The tourism industry is one of the largest industries in Australia that contribute towards
its overall economic development. Australia's economy blessings significantly from tourism,
which generates jobs, investment and increase in communities at some stage in Australia.
Australia's aggressive benefits in tourism remain unchanged, with its proximity to Asia,
appealing natural assets, secure surroundings, and high-quality air offerings (Voegtlin and
Scherer, 2017). Tourism performs a great element in Australia’s economy, contributing to both
GDP and employment. Tourism Research Australia’s strategic studies and analysis program
focuses on turning in measures of the shape and overall performance of the Australian tourism
enterprise. Our analysis brings collectively key findings from our own surveys with deliver and
call for intelligence from a large variety of assets to aid policy making, advertising and enterprise
improvement. Economic and enterprise analysis reviews cowl troubles inclusive of the value of
tourism to the Australian financial system (each without delay and circuitously), industry
performance, modern-day marketplace dynamics and rising trends. We additionally produce an
annual State of the Industry document, which analyses the present-day overall performance of
the Australian tourism enterprise, the challenges beforehand, and the way the enterprise wishes
to reply.
This is because there are a large number of people who visit Australia from the different
parts of the world (Wettergreen and et.al., 2018). There was a total of 2.Eight million
international site visitors to Queensland within the 2019 calendar year. The total spend in
Queensland become $6.1 billion greenbacks. International travelers spent a total of fifty four.9

million nights in Queensland.There was a total of 995,700 global visitors to Western Australia in
the 2019 calendar 12 months. The overall spend in Western Australia became $2.Four billion.
International tourists spent a complete of 25.2 million nights in Western Australia (Australian
Tourism Statistics 2020, 2021). There was a complete of 487,600 worldwide visitors to South
Australia in the 2019 calendar 12 months. The overall spend in South Australia changed into
$1.2 billion. International travelers spent a total of 10.Nine million nights in South Australia.
Therefore, it can be said that the tourism industry is one of the fastest growing industries in
Australia with changes in the trends from time to time. A large number of companies are
adopting the same in order to gain a competitive advantage against others.
CONCLUSION
From the above report, it can be concluded that industry analysis is an important aspect
for any organization. This is because it helps the organization in identifying the potential threats
as well as risks that can affect its business operations. A VRIO analysis helps in identifying the
resources that are valuable, rare for the company, the ones that cannot be imitated as well as the
ones that are organized. In order to internationalize the business operations, a company can adopt
various strategies such as starting a joint venture etc. An effective internationalization strategy
can help the company to conduct its business operations in an effective manner as well as gain a
competitive advantage within the industry. The recent developments within the industry have
affected the organizations operating within the company to a great extent. Therefore, it can be
said that the tourism industry is one of the major contributors to the overall development of an
economy. Also, an industrial analysis can help the company in identifying the opportunities as
well as potential threats.

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Online
About Us. 2013. [Online]. Available
through:<https://www.crownresorts.com.au/about-us/crown>.
Australian Tourism Statistics 2020. 2021. [Online]. Available through:<
https://www.budgetdirect.com.au/travel-insurance/research/tourism-statistics.html>.
Introduction to the VRIO Framework. 2021. [Online]. Available through:<
https://getlucidity.com/strategy-resources/introduction-to-the-vrio-framework/ >.