ACC2360 - Managerial Accounting Report: Crown Resort Analysis
VerifiedAdded on 2022/11/19
|27
|6214
|306
Report
AI Summary
This report presents a comprehensive analysis of Crown Resort, a prominent company in the tourism and gaming industry, focusing on managerial accounting strategies. The analysis begins with an overview of the company and its market position, followed by an in-depth evaluation using SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report also employs Porter’s Five Forces model to assess the competitive landscape and determine the company's competitive advantage. Subsequently, the report proposes strategic objectives for Crown Resort, utilizing the balanced scorecard method to evaluate performance across financial, customer, internal business processes, and learning and growth perspectives. Key Performance Indicators (KPIs) are established to measure progress towards these strategic objectives. The report aims to provide insights into Crown Resort's financial performance, market strategies, and overall stability in the business world.

Running head: MANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING
Name of the Student
Name of the University
Author Note:
MANAGERIAL ACCOUNTING
Name of the Student
Name of the University
Author Note:
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

1
MANAGERIAL ACCOUNTING
ABSTRACT
The current assignment focuses on the managerial accounting strategies on a well-established
company, Crown Resort based in Australia. The paper primarily focuses on the current
position of the market by evaluating through SWOT Analysis. The paper also demonstrates
the competitive advantage of the company through Porter’s Five Force Model. There are
strategic objectives developed for the company by using balanced scorecard method. The
performance of the company is evaluated by using Key Performance Indicator approach to
the company. The company Crown Resort is at the peak of its business. James Pacer is the
largest shareholder of Crown Resort, who owns casinos in London and Australia. In 2018, the
business announced as the net profit of $3.26.7 million. The above outcome shows the
performance of the business, the business is performing well in business. The company main
strategy is to focus on the world-class development and operations and aims at maximising
the shareholders return. The research indicates that the company Crown Resort has a strong
presence in the global business network. It is highly recognised all over Australia. This
business has also invested in research and development in order to maintain and improve the
quality of serve and product offered by the company. The company is highly concerned about
maintaining corporate social responsibility. Crown Resort is responsible for gaming programs
and services and the “responsible gambling code of conduct”. Crown Resort is also showing
good progress towards environmental goals. The company is focusing on three major areas
waste reduction, water conservation, energy efficiency. In the year 2018, the company
achieved a huge reduction in greenhouse gas emission with intensity of 2.8% per area. Crown
Resort believes in supporting the external community, it supports through many charitable
forms. For example, Crown Melbourne hosted Children’s Cancer Foundation’s Million
Dollar Lunch. Barry Felstead, Crown’s Australian Resort CEO, raised over $860,000 for
“Perth’s St Vincent de Paul’s homeless and emergency housing services”. The focus strategy
MANAGERIAL ACCOUNTING
ABSTRACT
The current assignment focuses on the managerial accounting strategies on a well-established
company, Crown Resort based in Australia. The paper primarily focuses on the current
position of the market by evaluating through SWOT Analysis. The paper also demonstrates
the competitive advantage of the company through Porter’s Five Force Model. There are
strategic objectives developed for the company by using balanced scorecard method. The
performance of the company is evaluated by using Key Performance Indicator approach to
the company. The company Crown Resort is at the peak of its business. James Pacer is the
largest shareholder of Crown Resort, who owns casinos in London and Australia. In 2018, the
business announced as the net profit of $3.26.7 million. The above outcome shows the
performance of the business, the business is performing well in business. The company main
strategy is to focus on the world-class development and operations and aims at maximising
the shareholders return. The research indicates that the company Crown Resort has a strong
presence in the global business network. It is highly recognised all over Australia. This
business has also invested in research and development in order to maintain and improve the
quality of serve and product offered by the company. The company is highly concerned about
maintaining corporate social responsibility. Crown Resort is responsible for gaming programs
and services and the “responsible gambling code of conduct”. Crown Resort is also showing
good progress towards environmental goals. The company is focusing on three major areas
waste reduction, water conservation, energy efficiency. In the year 2018, the company
achieved a huge reduction in greenhouse gas emission with intensity of 2.8% per area. Crown
Resort believes in supporting the external community, it supports through many charitable
forms. For example, Crown Melbourne hosted Children’s Cancer Foundation’s Million
Dollar Lunch. Barry Felstead, Crown’s Australian Resort CEO, raised over $860,000 for
“Perth’s St Vincent de Paul’s homeless and emergency housing services”. The focus strategy

2
MANAGERIAL ACCOUNTING
has led the organization to create new products and services, Crown Resort has improvised
high quality and standard. It has also established brand loyalty within the customers. In
overall the managerial accounting tools, balanced scorecard and key performance indicator
endeavours the organization’s stability in the business world. The balance scorecard basically
focuses on achieving main objectives through internal, financial, learning and growth and
customer perspectives. This is enhanced in order to accomplish the focus strategy in
managerial accounting tool.
MANAGERIAL ACCOUNTING
has led the organization to create new products and services, Crown Resort has improvised
high quality and standard. It has also established brand loyalty within the customers. In
overall the managerial accounting tools, balanced scorecard and key performance indicator
endeavours the organization’s stability in the business world. The balance scorecard basically
focuses on achieving main objectives through internal, financial, learning and growth and
customer perspectives. This is enhanced in order to accomplish the focus strategy in
managerial accounting tool.
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

3
MANAGERIAL ACCOUNTING
Table of Contents
Introduction................................................................................................................................5
Methodology..........................................................................................................................5
SWOT analysis.......................................................................................................................6
Strength..............................................................................................................................7
Weakness............................................................................................................................8
Opportunities......................................................................................................................9
Threats..............................................................................................................................10
Porter’s Five Force Model...................................................................................................10
Threat of new entrants......................................................................................................10
Risk of existing competitors.............................................................................................10
Threat of Substitutes........................................................................................................11
Bargaining Power of the Supplier....................................................................................11
Bargaining Power of the Buyer........................................................................................11
Porter’s Generic Strategy.....................................................................................................12
Balanced Scorecard of Crown Resort..................................................................................12
Discussion and Implication of findings: Balanced Scorecard..........................................12
Strategic objectives of Crown Resort in balanced scorecard...............................................13
Financial Aspects:............................................................................................................13
Customer Aspects:...........................................................................................................14
Learning and Growth Perspective:...................................................................................14
MANAGERIAL ACCOUNTING
Table of Contents
Introduction................................................................................................................................5
Methodology..........................................................................................................................5
SWOT analysis.......................................................................................................................6
Strength..............................................................................................................................7
Weakness............................................................................................................................8
Opportunities......................................................................................................................9
Threats..............................................................................................................................10
Porter’s Five Force Model...................................................................................................10
Threat of new entrants......................................................................................................10
Risk of existing competitors.............................................................................................10
Threat of Substitutes........................................................................................................11
Bargaining Power of the Supplier....................................................................................11
Bargaining Power of the Buyer........................................................................................11
Porter’s Generic Strategy.....................................................................................................12
Balanced Scorecard of Crown Resort..................................................................................12
Discussion and Implication of findings: Balanced Scorecard..........................................12
Strategic objectives of Crown Resort in balanced scorecard...............................................13
Financial Aspects:............................................................................................................13
Customer Aspects:...........................................................................................................14
Learning and Growth Perspective:...................................................................................14
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

4
MANAGERIAL ACCOUNTING
Internal business processes perspective:..........................................................................15
Key performance indicator of Crown Resort for the strategic objectives in balanced
scorecard:.............................................................................................................................15
Key Performance Indicator Table........................................................................................18
Conclusion and Recommendation............................................................................................21
Reference..................................................................................................................................22
MANAGERIAL ACCOUNTING
Internal business processes perspective:..........................................................................15
Key performance indicator of Crown Resort for the strategic objectives in balanced
scorecard:.............................................................................................................................15
Key Performance Indicator Table........................................................................................18
Conclusion and Recommendation............................................................................................21
Reference..................................................................................................................................22

5
MANAGERIAL ACCOUNTING
Introduction
The paper focuses on the analysis and evaluation management concepts and the
environment of Crown Resort. The Swot analysis and Porter’s Five force analysis helps to
identify the issues and develops strategies for improvement in business activities. The paper
identifies KPI that can boost the performance of the company Ayoup, Omar & Rahman
2016). The company have chosen four business perspective that are; financial perspective,
customer perspective, learning and growth perspective and sales perspective. These strategies
are chosen for improvement in the internal and external environment, where the monitoring
of financial, operational, customer satisfaction and growth activities can help to improve the
competency and ease the decision making process.
Overview of the Company
Crown Resort Limited is a well-known tourism and gaming industry which deals with
entrainment and gaming group. Crown Resort CEO is Barry Felstead who has taken the
company to it optimum peak in gaming industry. In 2018, the company holds A$8.7 billion of
market capitalization. Crown Melbourne and Crown Perth are the two of Australia’s leading
gambling and entertainment complexes. The company is headquartered in Southbank,
Melbourne, Australia. The company overall revenue is A$4.71 billion. The company has
supporting communities and skilled workforce which has aided the business to achieve its
goal. The Crown Resort is committed in developing and refining existing and new gaming
programs. The company commits to maintain good relationship with the stakeholders
Methodology
The following analysis is based upon the information gathered on Crown Resort’s
macro and micro environment. The key objectives are parallel with the Porter’s generic
strategy of product differentiation. All the data gathered are collected from secondary source
MANAGERIAL ACCOUNTING
Introduction
The paper focuses on the analysis and evaluation management concepts and the
environment of Crown Resort. The Swot analysis and Porter’s Five force analysis helps to
identify the issues and develops strategies for improvement in business activities. The paper
identifies KPI that can boost the performance of the company Ayoup, Omar & Rahman
2016). The company have chosen four business perspective that are; financial perspective,
customer perspective, learning and growth perspective and sales perspective. These strategies
are chosen for improvement in the internal and external environment, where the monitoring
of financial, operational, customer satisfaction and growth activities can help to improve the
competency and ease the decision making process.
Overview of the Company
Crown Resort Limited is a well-known tourism and gaming industry which deals with
entrainment and gaming group. Crown Resort CEO is Barry Felstead who has taken the
company to it optimum peak in gaming industry. In 2018, the company holds A$8.7 billion of
market capitalization. Crown Melbourne and Crown Perth are the two of Australia’s leading
gambling and entertainment complexes. The company is headquartered in Southbank,
Melbourne, Australia. The company overall revenue is A$4.71 billion. The company has
supporting communities and skilled workforce which has aided the business to achieve its
goal. The Crown Resort is committed in developing and refining existing and new gaming
programs. The company commits to maintain good relationship with the stakeholders
Methodology
The following analysis is based upon the information gathered on Crown Resort’s
macro and micro environment. The key objectives are parallel with the Porter’s generic
strategy of product differentiation. All the data gathered are collected from secondary source
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

6
MANAGERIAL ACCOUNTING
such as websites of Crown Resort, articles and books. The financial data of Crown Resort is
collected from annual report and the audit reports and share price listing.
The company have certain issues and challenges that needs strategic planning for
growth aspects. The SWOT analysis for the company can help to analyse the internal
environment of the business. The porter’s five force model can help to analyse the external
environment of the business.
SWOT analysis
Strength Weakness
It is one of the leading organisation in
Australia.
It has strong penetration of new markets and
strong distribution network that have
reached to its major potential market.
Return on Capital Expenditure
Skilled labours in the organization
It provides high level of customer
satisfaction through effective customer
relationship management.
It has strong free cash flows that means it
provides the resources in hands of the
company to expand its new project.
Cost Structure
Automation is highly encouraged
The company have high day inventory
compared to the competitors.
It has high attrition rate observed in
workforce.
The investment for the research and
development is not up- to the mark.
The company have gaps in the product
range that is served by the company.
MANAGERIAL ACCOUNTING
such as websites of Crown Resort, articles and books. The financial data of Crown Resort is
collected from annual report and the audit reports and share price listing.
The company have certain issues and challenges that needs strategic planning for
growth aspects. The SWOT analysis for the company can help to analyse the internal
environment of the business. The porter’s five force model can help to analyse the external
environment of the business.
SWOT analysis
Strength Weakness
It is one of the leading organisation in
Australia.
It has strong penetration of new markets and
strong distribution network that have
reached to its major potential market.
Return on Capital Expenditure
Skilled labours in the organization
It provides high level of customer
satisfaction through effective customer
relationship management.
It has strong free cash flows that means it
provides the resources in hands of the
company to expand its new project.
Cost Structure
Automation is highly encouraged
The company have high day inventory
compared to the competitors.
It has high attrition rate observed in
workforce.
The investment for the research and
development is not up- to the mark.
The company have gaps in the product
range that is served by the company.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

7
MANAGERIAL ACCOUNTING
Opportunity Threat
The company can decrease the cost of
transportation by low shipping price that
can trigger its profitability margin.
By attracting new customers into the online
channel can help increase the sales margin.
The development of market can lead to
dilution for the competitor’s advantage.
The shortage of workforce can be a threat to
the company.
The issues regarding currency fluctuation
may impact the company running in global
market.
The rise in the raw material can be a threat.
Strength
Leading Company in Australia- Crown Resort Limited has underpinned its business since
long and earning huge profit in Australia. It has built experience at entering new markets and
gained huge success. Since, the business has expanded itself in the global market, has gained
immense revenue and aided economic cycle in the Australian market.
Cost Structure: The cost of Crown Resort is low that is it primarily focuses on penetration
pricing which makes affordable for the all types of customers. Hence, this attract all segments
of customers.
Return on Capital expenditure is successfully incurred in Crown Resort and the company is
able to generate good return on capital expenditure on various projects in the past.
The financial position of Crown Resort is strong and the company is dealing with high profit
for consecutive past five years and has accumulated profit reserve.
The Crown Resort is located in such a place where it provides cost advantage to the company
when the same is compared with the competitors.
MANAGERIAL ACCOUNTING
Opportunity Threat
The company can decrease the cost of
transportation by low shipping price that
can trigger its profitability margin.
By attracting new customers into the online
channel can help increase the sales margin.
The development of market can lead to
dilution for the competitor’s advantage.
The shortage of workforce can be a threat to
the company.
The issues regarding currency fluctuation
may impact the company running in global
market.
The rise in the raw material can be a threat.
Strength
Leading Company in Australia- Crown Resort Limited has underpinned its business since
long and earning huge profit in Australia. It has built experience at entering new markets and
gained huge success. Since, the business has expanded itself in the global market, has gained
immense revenue and aided economic cycle in the Australian market.
Cost Structure: The cost of Crown Resort is low that is it primarily focuses on penetration
pricing which makes affordable for the all types of customers. Hence, this attract all segments
of customers.
Return on Capital expenditure is successfully incurred in Crown Resort and the company is
able to generate good return on capital expenditure on various projects in the past.
The financial position of Crown Resort is strong and the company is dealing with high profit
for consecutive past five years and has accumulated profit reserve.
The Crown Resort is located in such a place where it provides cost advantage to the company
when the same is compared with the competitors.

8
MANAGERIAL ACCOUNTING
The company has a strong involvement in social media followed by millions of people. This
approach involves high level of customer engagement with short period of time.
Crown Resort has done good investment in skilled labours and retaining staff in the
organization. The company has diversified workforce and multiple departments which is
assessed by skilled employees and workers (Tham & Huang, 2018). The people are from
different geographical areas, racial, educational background and cultural background. This
approach helps the company to maintain culturally diversified organization and fosters
diverse ideas in the organization.
Strong free cash flow- The Company has strong free cash flow which provides resources in
the hands of the company in order to get involved in new projects.
Strong Distribution Network of the Company- Since long the company has emerged itself in
a reliable distribution network that has the capability to reach the majority of the market. The
company has strong relationship with the dealer community and has been provided with good
products from the suppliers.
Automation is highly encouraged in Crown Resort, in various stages of production the
company recommends automation. This has allowed more efficiency and reduced resources
which reduced the cost of the company.
Weakness
High day inventory- As compared to the competitors the day inventory is high, this can the
growth of the company by making the company leverage more capital in order to invest in the
channels.
A small proportion of the company Crown Resort is rented and not purchased, the company
has to pay a very large amount of the rent which adds additional cost of the company.
MANAGERIAL ACCOUNTING
The company has a strong involvement in social media followed by millions of people. This
approach involves high level of customer engagement with short period of time.
Crown Resort has done good investment in skilled labours and retaining staff in the
organization. The company has diversified workforce and multiple departments which is
assessed by skilled employees and workers (Tham & Huang, 2018). The people are from
different geographical areas, racial, educational background and cultural background. This
approach helps the company to maintain culturally diversified organization and fosters
diverse ideas in the organization.
Strong free cash flow- The Company has strong free cash flow which provides resources in
the hands of the company in order to get involved in new projects.
Strong Distribution Network of the Company- Since long the company has emerged itself in
a reliable distribution network that has the capability to reach the majority of the market. The
company has strong relationship with the dealer community and has been provided with good
products from the suppliers.
Automation is highly encouraged in Crown Resort, in various stages of production the
company recommends automation. This has allowed more efficiency and reduced resources
which reduced the cost of the company.
Weakness
High day inventory- As compared to the competitors the day inventory is high, this can the
growth of the company by making the company leverage more capital in order to invest in the
channels.
A small proportion of the company Crown Resort is rented and not purchased, the company
has to pay a very large amount of the rent which adds additional cost of the company.
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide

9
MANAGERIAL ACCOUNTING
The company possess low current ratio which reflects that the company’s ability to meet the
short term-obligations is much lower than the industry average. This ensures that the
company is suffering from low liquidity and hence observed to have poor liquidity position.
New Challenges- It is observed that the company is unable to tackle with the surrounding
obstacles and challenges by the new entrants. The company is not doing well in the niche
categories and has lost small market share. The company has to look into internal feedback
mechanism from the sales team.
Crown Resort is unable to meet the customers demand and it is due to lack in market
research. The demand of customers’ changes over time and Crown resort is still relying on
the past data (Mathooko & Ogutu, 2015). The company need to do effective market research
in a periodic manner in order to avoid such obstacles regarding customers.
According to the recent articles, it is observed that due to high competition, the qualified
employee have been leaving the company and therefore, the company is facing shortage of
good talent and
Despite of being culturally diversified Crown Resort is facing problems with workers morale
due to company politics which has emerged in recent years.
The Company lacks in legal departments and legal experience there are issues related to
product market share. There are certain product which has good market share and other
products with low market share.
Research and Development process is slow- The Company is under progressed in reference
to research and development as it has unable to compete with the top players in this industry.
Innovation is slow and s compared to the competitors.
MANAGERIAL ACCOUNTING
The company possess low current ratio which reflects that the company’s ability to meet the
short term-obligations is much lower than the industry average. This ensures that the
company is suffering from low liquidity and hence observed to have poor liquidity position.
New Challenges- It is observed that the company is unable to tackle with the surrounding
obstacles and challenges by the new entrants. The company is not doing well in the niche
categories and has lost small market share. The company has to look into internal feedback
mechanism from the sales team.
Crown Resort is unable to meet the customers demand and it is due to lack in market
research. The demand of customers’ changes over time and Crown resort is still relying on
the past data (Mathooko & Ogutu, 2015). The company need to do effective market research
in a periodic manner in order to avoid such obstacles regarding customers.
According to the recent articles, it is observed that due to high competition, the qualified
employee have been leaving the company and therefore, the company is facing shortage of
good talent and
Despite of being culturally diversified Crown Resort is facing problems with workers morale
due to company politics which has emerged in recent years.
The Company lacks in legal departments and legal experience there are issues related to
product market share. There are certain product which has good market share and other
products with low market share.
Research and Development process is slow- The Company is under progressed in reference
to research and development as it has unable to compete with the top players in this industry.
Innovation is slow and s compared to the competitors.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

10
MANAGERIAL ACCOUNTING
Opportunities
Low transportation cost can bring lower shipping price, it can lower the overall cost of the
Crown Resort’s products (Omsa Abdullah & Jamali, 2017). The company can pass its
benefits to the customers and boost its profitability in order to gain market share of the
company.
The economic factors like the taxation policy of Australia can bring new changes in the
industry. It fosters profitability in the industry.
The online platform of the company has brought many new opportunities for the company.
The company is benefited with new customers, and this has broadened its channels.
Threats
The company is facing shortage of workforce, shortage of skilled workforce can bring threat
to the company. This hinders the growth of the Crown Resort.
Currency Fluctuation - Since, the company is based in many countries, it is facing currency
fluctuations. This is affected by volatile political climate of many countries.
Legal Factors- The new rules and regulation can put a great impact on the company’s growth.
For example: Paris Agreement 2016 can be threat to certain products of Crown Resort.
Porter’s Five Force Model
Threat of new entrants
The Crown Resort is already an established company and therefore, have less impact
of new entrant. Still the new business are emerging in the market with new innovation and
creativity. The may bring new strategies and planning as well. The company is an oligopoly
in resort business and therefore it can the growth of the company. The company must
enhance the research and development team for improvement in business activities. Crown
MANAGERIAL ACCOUNTING
Opportunities
Low transportation cost can bring lower shipping price, it can lower the overall cost of the
Crown Resort’s products (Omsa Abdullah & Jamali, 2017). The company can pass its
benefits to the customers and boost its profitability in order to gain market share of the
company.
The economic factors like the taxation policy of Australia can bring new changes in the
industry. It fosters profitability in the industry.
The online platform of the company has brought many new opportunities for the company.
The company is benefited with new customers, and this has broadened its channels.
Threats
The company is facing shortage of workforce, shortage of skilled workforce can bring threat
to the company. This hinders the growth of the Crown Resort.
Currency Fluctuation - Since, the company is based in many countries, it is facing currency
fluctuations. This is affected by volatile political climate of many countries.
Legal Factors- The new rules and regulation can put a great impact on the company’s growth.
For example: Paris Agreement 2016 can be threat to certain products of Crown Resort.
Porter’s Five Force Model
Threat of new entrants
The Crown Resort is already an established company and therefore, have less impact
of new entrant. Still the new business are emerging in the market with new innovation and
creativity. The may bring new strategies and planning as well. The company is an oligopoly
in resort business and therefore it can the growth of the company. The company must
enhance the research and development team for improvement in business activities. Crown

11
MANAGERIAL ACCOUNTING
Resort needs to come with new strategies to sustain in the market and gain competitive
advantage.
Risk of existing competitors
The top competitors of Crown Resort include Century Casino, Churchill, and Red
Rock Resort. The company is operating in a very competitive Consumer Service Industry and
thus, the rivalry among the existing players can lower the price and also impact the
profitability of the company (IEVERS, 2018). They can impact the company’s long term
growth so the strategic plan can help the company to withstand competitive advantage. The
company can collaborate with the competitors and can increase the market size rather than
competing with themselves.
Threat of Substitutes
There are comparably very few substitutes for Crown Industry. The few substitutes
even produce very low profit for their company (Kharub & Sharma, 2017). The customer
needs is satisfied by the competitors. This impacts the profitability of the business. The
company must offer high value proposition to the customers that can provide unique
offerings. The price offering of Crown Resort is less than their substitutes and therefore, there
the buyers are less likely to switch to Crown Resort substitutes.
Bargaining Power of the Supplier
The total number of suppliers for Crown Resort is more as compared to their buyers.
This indicates that the supplier somehow possess less control over the price of the product
and thus making the bargaining power of the supplier a weak force. The suppliers must be in
huge numbers so as to make profit margin high. This can provide with negating power that
can help the company to negotiate in low price.
MANAGERIAL ACCOUNTING
Resort needs to come with new strategies to sustain in the market and gain competitive
advantage.
Risk of existing competitors
The top competitors of Crown Resort include Century Casino, Churchill, and Red
Rock Resort. The company is operating in a very competitive Consumer Service Industry and
thus, the rivalry among the existing players can lower the price and also impact the
profitability of the company (IEVERS, 2018). They can impact the company’s long term
growth so the strategic plan can help the company to withstand competitive advantage. The
company can collaborate with the competitors and can increase the market size rather than
competing with themselves.
Threat of Substitutes
There are comparably very few substitutes for Crown Industry. The few substitutes
even produce very low profit for their company (Kharub & Sharma, 2017). The customer
needs is satisfied by the competitors. This impacts the profitability of the business. The
company must offer high value proposition to the customers that can provide unique
offerings. The price offering of Crown Resort is less than their substitutes and therefore, there
the buyers are less likely to switch to Crown Resort substitutes.
Bargaining Power of the Supplier
The total number of suppliers for Crown Resort is more as compared to their buyers.
This indicates that the supplier somehow possess less control over the price of the product
and thus making the bargaining power of the supplier a weak force. The suppliers must be in
huge numbers so as to make profit margin high. This can provide with negating power that
can help the company to negotiate in low price.
⊘ This is a preview!⊘
Do you want full access?
Subscribe today to unlock all pages.

Trusted by 1+ million students worldwide
1 out of 27
Related Documents

Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
Copyright © 2020–2025 A2Z Services. All Rights Reserved. Developed and managed by ZUCOL.