Genting Singapore PLC: SWOT, Strategic Issues, and Business Strategy

This report provides a strategic business analysis of Genting Singapore Plc, examining the current trends in the gaming industry and their impact on the casino sector. It evaluates Genting Singapore's sustainable competitive advantages, highlighting its diversified operations, strategic location near Universal Studios, and adherence to corporate policies. The SWOT analysis identifies key strategic issues, including intense competition and the challenge of employee diversification and credit management. The report recommends a new market development strategy supported by digital software and profiling habitual gamblers to control bad debt. Ultimately, the analysis aims to provide actionable recommendations for Genting Singapore to maintain its competitive edge and address its strategic challenges effectively.

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Table of Contents
A). Introduction...............................................................................................................................2
A). Evaluation of Sustainable Competitive Advantage of Genting Singapore...............................3
B) Strategic Issues Faced by the Organization................................................................................6
D). Recommendation of Suitable Business-level Strategy............................................................13
F). Formal Report..........................................................................................................................18
References......................................................................................................................................23

A). Introduction
In the present report, a strategic business report for Genting Plc. has been constructed. The report
has discussed the current trends in the gaming industry and its impact on the casino industry. In
this regard, two major issues, the challenge of employee diversification and the based credit has
been highlighted. The report has suggested the strategy of new market development to deal with
the issue. Digital software can be used to support the plan. In order to control bad debt, the
companies should profile habitual reporters. They can use data analysis machine to analyze the
gamer. The company should not give credit to the customers with low rating
.

A). Evaluation of Sustainable Competitive Advantage of Genting
Singapore
Genting Singapore Plc is the leading resort and international gaming specialist. It provided
services in developing, operating and marketing in casinos and international resorts. Other
strengths of the organization are leadership, management, financial backing and investment
discipline. Genting has diversified operations in development and operations of the resort, casino
operations, international sales and marketing service and IT application services. It has the
largest casino in the UK and a state-of-technology casino in Singapore (Sallaz, 2002). The resort
is built at a unique location, which is nearby Universal Studios, a major tourist hub in the
country. The company has established a tourist bridge so that the customers can easily travel to
the resort. The vicinity to the business block and other tourists’ attractions serves as an excellent
tourist attraction for the company.
In 2010, the company also obtained a casino license by the Casino Regulatory Authority of
Singapore. The resort facilities were excellent and at-par with the top resorts and casinos of the
world. The organization is committed to conduct all the operations ethically with the highest
standards of operations. The company is developing its business operations in a responsible
manner. All the company’s operations are conducted in a transparent and accountable manner. It
is the first integrated resort of Singapore and it has become the preferred choice of resorts for the
gamers. It has a convention hall, which is booked throughout the year to appeal to the age groups
of different people. It has become the model for the global resorts. It is the pioneer organization
and family holiday destination (Cookson, 2017). The destination of the resort serves as a major
competitive advantage for the organization. Another sustainable competitive advantage of the

organization is its adherence to the corporate policies and legislations related to gaming. All the
gaming and casino practices are fair and adhere to government legislations. It has encouraged
investors and customers to participate in the gaming and casino activities.
Genting Singapore is an international marketing and sales organization, which provides sales and
marketing services to the offices in Singapore, Hong Kong, India, Thailand, China and
Indonesia. It also provided support services in IT application development. All the systems of the
organization are fully automated and manage the operations of the organization (Suh, & lhaery,
2016). It provides comprehensive services to its customers. Therefore, the customers can access
the organization for any purpose. Overall, it has supported the organization in increasing its
brand equity.
The company has used differentiation and niche strategy to achieve at-par performance
and give superior results to the customers. The company uses differentiation and niche strategy
to differentiate itself from the competitors. Although, in the Singapore, it has obtained a
differential brand equity and name. However, there are several competing organizations willing
to enter the Singapore market. These competitors are present in different countries; however,
they are willing to enter the Singaporean market to reap the benefits of new market. The strategic
location of the resort is also a core competency of the organization (Kim & Kang, 2018). It is
located near to the Universal Studios; therefore, a large number of visitors prefer staying there. It
also increases the awareness of the customers towards the resort. The Gaming enthusiasts from
all over the world come visit the resort as a part of their travel plans. Other than that, other
tourists from all across the globe also prefer staying at the resort as it is nearby several tourists
attractions. In order to attract more tourists, the company is establishing new adventure parks in
the nearby locations.

The business organization has attained competitive advantage by creating value for the
customers through superior product offering. It includes the use of smart cards, roulette table
games and poker games. The company also uses promotional activities such as poker tournament
and raffles (Gainsbury, Russell, & Hing, 2014).
Along with it, it also provides complimentary service such as free taxi to drop and pick the
customers, offering free telephone calls, complimentary service such as drop and pick facility to
the customers and providing excellent service to the customers. As it is a part of the service
industry, these services play a critical role in increasing the overall standards of the service. The
customer evaluates their experience according to the services offered to then during their stay
(Han, Choo, Lee & Hwang, 2017). These activities motivate the customers to prolong their stay and
come on repeated visitors. As it is one of the most prominent organizations in the Singapore,
word-of-mouth also works well for the organization.
The company has used several approaches to increase its competitiveness in the market, such as
good management, highly trained staff, offering complimentary services, enhanced customer
services and flexibility in the use of service. The company is trying to base its competitive
advantage based on three fundamentals, which are the company, staff members and the
customers. In the past years, the company has faced intense competition; however, it has
established a brand image for itself (Hayes, 2017). It has maintained a distinguished position for
itself by working responsibly towards the external environment. The company is dedicated
towards the sustainability practices and tries to reduce the negative impact of business operations
on the environment. It has adopted waste management practices so that it emits minimal waste.
The company also adheres to proper waste treatment, before it disposes its waste.

Other than that, the company is also trying to provide optimal customer service to the customers
of the business organizations. The organization is also focusing on providing appropriate
services to the customers, which include medical cover, transportation, meals, education to the
children. The employee provides sustainable competitive advantage by offering better customer
services to the competitors (Han, Lee, & Hwang, 2018). It encourages the employees of the
organization to provide optimal services to the customers. The company offers several training
and incentives facilities to enhance the level of customer service to the customers.
B) Strategic Issues Faced by the Organization
In the present section, SWOT analysis of the organization is conducted to analyze the strengths
and weaknesses of the organization. The analysis also identifies the market opportunities and
threats, which can address the current situation.
Strengths
 There are several barriers to the market
entry
 The labor cost is limited
 Brand value in local market
 High profitability ratio
 Domestic market (Loi, & Kim, 2010)
 Strong distribution and sales network
 The company has a strong relationship
with its suppliers and the partners
 It offers unique products
 The industry is economic as it has low
investment an high profitability
 The luxury hotel is with excellent
infrastructure and sound financial
backing to run the gambling and casino
business
Weaknesses
 The cost and income structure is critical
 It has a limited product portfolio
 The competitiveness in the market is
high
 High dependence of technology
(Genting, 2018)
 In Singapore, market concentration of
casinos is low and saturated at the
places, where gambling is legalized
 Loose credit terms
 Opportunities
 The opportunities in the gaming
industry are:
 Constantly growing economy
Threats
 Fluctuations in Price
 Technological issue in operations
 Intensified competition in the market

 Exploring new markets
 High income level of users, which can
result in increased profitability
 The industry is changing at a rapid rate
(Orneo Port, 2010)
 The countries are forming new trade
agreements, which can expand the
business
 Availability of global markets
 Expansion in market size
 The number of competitors is low, as it
is difficult to enter the industry due to
several stages of licensing and financial
backing
 The threat of gaming substitutes is high
as these activities are available at a low
cost
 certain strict policies and government
regulations for the gambling business
With the analysis, it can be identified that Genting Singapore Inc. is a leading casino and
gambling organization. However, there are certain market scenarios, which impact the operations
of the organization. From the analysis, it can be identified that the intense competition in
Singapore is one of the major issue. In the scenario of intense competition, the company needs to
develop a niche competitive position for the organization. Several companies are trying to enter
the market of Singapore as the competition in the market is comparatively low than other
markets. It can impact the long-standing monopoly of Genting in the casino history. There are
also several counterfeit organizations, which are trying to copy the business plan of Genting and
proposing to open an integrated resort for the organization (Gu, & Gao, 2006).
According to market intelligence reports, the target market of the company is foreigners from
nearby countries such as India, Taiwan, Arabic countries and Indonesia. The percentage inflow
of customers from Singapore is 6%, which is very low. There are several overseas visitors;
however, the establishment of new resort will divert these visitors to new resorts. The Malaysian
also popularly travels to the integrated resorts as day travelers. They have a high tourism
percentage due to the proximity of the countries (Kale, 2007).

The increase in the number of competitors can reduce the revenue incurred by the organization.
The company can retain its current customer base by the cost of heavy expenses.
Currently, the resort and tourist destinations are obtaining a high level of subsidies as the
government wants to promote tourism in the country. These subsidies can be in the form of
petrol, rice or other consumer product. If intense competition occurs in the gaming and casino
market, the subsidies provided to the companies will be reduced (Borneo Post, 2010).
The external conditions to the organization impacts the business operations of the organization.
The competition from the new entrants to the industry is less. The luxury hotel, Genting is with
excellent infrastructure and sound financial backing, which supports gambling and casino
business (Álvarez‐Martínez & Lahr, 2016). The company is safe from the new competitors as
several obstacles such as long application process and expensive application for a license. There
are also certain strict policies and government regulations for the gambling business; the start-up
capital for the casino business is very high.
In Singapore, there are a significant number of business organizations working in the casino
industry. The market concentration of casinos is low and saturated at the places, where gambling
is legalized. There are high exit barriers such as high leverage and huge investment (Lo, 2009).
Therefore, extent of rivalry in the industry is limited.
In the casino industry, the suppliers include providers of alcohol, food and machines. The raw
material providers are not able to impact the business of the organization. The suppliers cannot
exert any kind of pressure on the organization and Genting can easily switch from one supplier to
another. Other than that, there is large number of suppliers; moreover, these are generic suppliers
as the industry has large number of options.

There is little difference among the source products. There are a large number of suppliers who
supply the products at the same rates and sane quantity. It can be critiqued that it is easier for the
organization to integrate backward; therefore, the overall power of suppliers is limited. In the
gambling industry, there are a large number of substitutes available for gambling and
entertainment (Wu & Chen, 2015). There are several substitutes to the gambling such as lotteries,
sports and car race. In the recent years, online gambling has become a popular trend (Piscitell,
Harrison, Doherty, & Carmichael, 2017). In gambling, the companies impose high taxes, which
deviates the customers towards other entertainment activate. Moreover, cost of direct gambling is
also very high. The end consumer or gamblers can easily switch from one competitor to another.
It enhances the level of competition among the business organizations. It is a fragmented market,
with diverse geographic features (Kilby, Fox, & Lucas, 2005). The switching cost is very low and
the consumer section is price sensitive.
Therefore, two significant challenges for Genting Singapore is the intense competition in the
market and loose credit terms. The company can use several strategies such as marketing and
human resource training to fight the stiff competition. Another challenge for the organization is
the loose credit terms. Different approaches such as background check and credit score of the
customers can be used to reduce the loss incurred by loose credit terms.
C). Strategic Objectives
The company has developed its brand as the leader in sustainable and integrated development of
resorts all across the globe. The mission of the organization is to develop state-of-technology,
world class resorts, which can transform the tourism destination and uplift the local economy.
However, there are certain challenges in the operations of the organization.

Currently, the company is following several strategic objectives to achieve the business goals
and objectives. Genting Singapore is dedicated to create more jobs through sustainable practices.
The company is trying to explore new avenues so that it can minimize the impact of business
operations on the organization.
The core values of the company are trustworthiness, integrity and mutual respect. The company
tries to build a workforce, which imbibes these values and emphasize on the customer value.
The management team of the organization follows the appropriate standards of corporate
governance. It has audit and risk committee, which includes the audit plan for the external and
the internal auditor (De PhD, 2013). These audit plans are also aimed at reducing the amount of
credit risk in the organization.
The risk and audit plan also include the financial, operational and compliance control policies
(Nattrass & Seekings, 2016). Genting Singapore is using sustainability approach to develop its
human resources and core competency such as maintaining the integrity of the assets, regulatory
compliance, maintaining the corporate branding and reputation, leadership and succession
planning and community care. These approaches will assist the organization in delivering
effective customer services to the customers.
The company promotes diverse employees and inclusion; however, several ethnic and cultural
challenges are faced by these employees. Recently, the company faced legal issues regarding the
use of foreign workers in its current operations (Kong, 2014). The company is operates in a
multinational and multiethnic environment. A significant section of the organization’s customer
base is comprises of the foreign customers. Therefore, it is important that the organization has a
diversified workforce, which can understand the needs of different customers and offer them

appropriate services. The company is also facing the issue of loose credit terms. The company is
forced to provide loose credit to enhance the business, but is having negative effects on the
business. There are several rogue customers, who are taking too long to pay or do not pay to the
organization (Jing, 2014). Following strategic objectives can be used to address these issues in
the organization:
 It can be critiqued that Genting Singapore, can adopt a top-down or bottom-up strategy to
enhance diversity and inclusion at the workplace. The company is also facing charges
regarding the absence of diversity in the workplace. Several previous employees have
complained that the company is not treating its past employees fairly. Therefore, leaders and
managers of the organization support diversity and implemented several policies to
encourage it. In the recent years, the company has adopted various proactive strategies to
foster diversity at the workplace. However, overall efficacy of these strategies in promoting
inclusion is limited (Evans & Topoleski, 2002). The employee engagement is most crucial in
reaching all the levels of organization and communicating the importance of diversity and
inclusion to different employees. Most of the employees are receptive to the diversity efforts;
however, they do not have the confidence and knowledge to take the actions.
 As customer service and employee dedication is important for the profitability of the
organization. The company can take efforts to encourage the employees to support
diversity and inclusion. There are certain diversity goals and vision of the organization
and they should be connected to the objectives of the business enterprise. The employees
should be acknowledged the importance of diversity in the job role and the importance of
job role in fostering diversity (Wong, 2012). The HR department of the organization
should emphasize to foster diversity at the workplace. At the current times, diversity is