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TheintroduceofcasinoindustryThegamingindustrywasonceknownasthe"evilindustry"hasbeenarapiddevelopmentinrecentyears.To2001,109countriesandregionsaroundtheworldrecognizethelegalizationofthegamingindustry,theannualincomeofover120billionU.S.dollars,Casinoisusuallybuiltincombinewithhotels,restaurants,retailshoppingandothertouristattractions.Italsoprovidesfacilitiesforhostingliveentertainmenteventsandsportingevents.Moreandmorecountriesrecognizesolongashandlethenegativeimpactofthegarningindustrytothelocalcommunity,thegarningindustrywillbeabletobringconsiderablerevenue,reducethenumberofunemployed,andpromoteeconomicdevelopment.Traditionalgarningindustryismainlyconcentratedinthedevelopedcountriesandregions,suchasLasVegas,AtlanticCity,MonteCarloandMacauisthetraditionalgamingindustrydevelopedareas.DevelopingcountriesisgraduallyaddedtotheranksoftheSoutheastAsiancountriesaftertheAsianfinancialcrisis,whichtakesoneofthegarningindustryasakeydevelopmentindustry,thegarningindustry'seffortstothedevelopmentofAfrica,Oceani比somecountrieshavealsoincreased. Porter'sfiveforcesapplyinthecasinoindustryThebargainingpowerofbuyerThebargainingpowerofbuyerhasanoverallratingofmedium・high.•Mostofthecasinoscustomersaretouristsandgamblers.Majoreconomicpillarsisgamingindustry,ithasledtothedevelopmentofthetourismindustry,theentertainmentindustry.Itplaysanimportsntrole.Sothegamblers,statusisirreplaceable・Itgivesgroupofgamblersalargeamountofbargainingpower.•WiththedevelopmentoftheInternet,therearemoreandmoreentertainmentactivitiesthatforcustomerstochoose,suchastheloto,Iandlords,sportsbettingandsoon.Alloftheseswitchcostisnotveryhigh.Socustomersarewillingtochoosethem.Insomedegree,itwillaffectthedevelopmentofthecasinoindustryandthenaffecttheotherindustry,becausetomanycities,theyattractthecustomertotravelingduetothecasino.Soitgivesthecustomerhavealotofbargainingpower.•Customersalsohavestrongfocusontheprice,thelevelofentertainingandenjoyablesotheyarelikelytoswitchtoothercompetitorsiftheydon'tfeelentertainingandenjoyablewithlowestprice.Casinosneedtodorenovationinordertoattractmorecustomerandincreasehighlevelofcustomersatisfaction.Customersatisfactionisbecominghardertoachievebecausetheywantbetterserviceatlowerpricesthanothercompetitors.Sowiththehighlevelofcompetitionbetweengarningcorporationsitshowthatbuyersshowsignificantamountofbargainingpowerintheindustry.ThebargainingpowerofsuppliersThebargainingpowerofsupplierislow.•Thecasinoindustrypromotethedevelopmentoftheotherindustry,mostofthecustomersarethetouristandgamblers,inthefrontofthebuyer's,thesuppliersstayinandisadvantagepassion,becausemostoftheirincomeare comefromthem,sotheirbargainingpowerislow.•Tothebuyer,thecasinoisnottheentire.Therehavemanyentertainmentsforthemtochoose.Iftheydon'tsatisfiedwithit,theycanchangeit,andtheswitchcostisnotveryhigh‘speciallyinthedevelopmentoftheInternet,theycanstayathometoplaythecard,itjustcostalittlegamecurrency.•Nowadays,therehavemanysubstituteinthecasinoindustry,itisacompetetothecasino,whiletothecustomersifsanopportunity,sothepassiontothebuyerislow.Threatofnewentrant：•Thethreatofnewentranttoexistingcasinosistobelowbecausethebarrierstoentryinthecasinoindustryarehigh・•Thecasinosneedhighcapital,becausemostoftheequipmentsaresoexpensivewhileitisnoteasyfornewentranttoreach.Soitmayreducetheprobabilityofthreatofnewentrant.•Theexistingcasinoshaveadeepimpressintheircustomers,mind,it'shardfornewentranttobroken.Forexample,whenwerefertothecasino,mostofpeople'sfirstreactionisLasVegas,Macao.Theyneedtakealongtimetoacceptanotherbrand.Ifnewentranttakesomepromotionaltoattractcustomers,theprofittheymakemaylow,evenlosemoney.•Tothecasinoindustrythelocationandtheenvironmentalsotheconvenienttransportationsituationareimportant.Whafsmostimportantisthegovernmentsassisttomanagementittopromisethecustomercanhaveagoodfairenvironmenttoenjoyit.Allofthesearenoteasytoanycountrytoachieveit.•Theswitchingcostsacustomerincursbygoingtoadifferentcasinoarerelativelylowsoitenablenewentranttoenticecustomertoswitchtotheirservice・•Thegovernmentpoliciesandregulationscanmakeitdifficultfornewentranttoentertheindustry.Becausenotallpeoplecanacceptthegambling. ThethreatofsubstituteproductsandservicePowerofsubstitutehasanoverallratingofhigh.Casinosareoneofthemostpopulargamblingscenesforvisitors.Butintheseyears,therearemoreandmoreindustrythathavethesamenaturewiththecasino,suchaslottery,football,racingandsoon.Theirvalueisthesamewiththecasino,buttheirpriceislower,tomostofthecustomers,theirwillchoosethelowerprice.Peopleareliketotryingnewthings,whenthesubstitutecome,theywillwanttotryit,iftheyfindthesubstituteisbetterthanthecasinothatexist,theywillprefertothesubstitute,andthenitwillaffectthecasino.TheintensityofcompetitiverivalryTheintensityofcompetitiverivalryhasanoverallratingofhigh.Therivalrywithinthecasinoindustryisintenseandconsideredtobehighcompetition.Thereductionofthecasinogrowthrateisduetothelimitednumberofnewmarketsthatareavailableforexpansiori.Smallcasinoscompeteintheexistingmarketsbypurchasingpropertiesthatthelargecasinosdonotwanttoselltotheirmaincompetitors.Macaohasbecomeamajorgamblingdestinationintheworld,manyUScasinoswanttotaketheadvantageofthenewmarketbyjoiningtoMacaocasinoindustrywithseveralofresortspurchasingcontract.Mostofthecasinoshavehighfixedcostsotheyneedtofighttogainprofitandsecuretheirmarket.ManycasinoswanttocompetewithLasVegastobecomeworldnumberonecasinodestinationanditwillincreasetheindustryrivalry.Furthermore,itiscostlyforcasinostogetoutoftheindustrybecauseduetothedifficultiesofsellingtheirassetwithgoodpriceandalltheirassetveryilliquidityandextremelyhighvalueitishardtosellintheshort.Itisbetterforcasinostocontinuetheirbusinessinpoortimebecausetheymaysufferlesslossthangettingoutoftheindustry. 3HowhavethecasinosinAtlanticCitytriedtocompletewithLasVegas?Whatthreatsdotheyface?TheadvantageoftheAtlanticCityisthelocation.AtlanticCityisinthedenselypopulatedeasternregion,onlytwohoursdrivefromNewYork.ThestylearchitecturalinAtlanticCityisdifferentinLasVegas'magnificent,althoughthedarkcomersofthesamediffusemoneyrottenbreath,relatively,butlittleappearstohavealittlestyle.InAtlanticCity,gambling,entertainment,recreation,accommodation,cateringandotherfunctions,everythingiscomplete.Theentirecasinolightslotmachinesthereare7000units,250unitsoflargeroulettewheel,othergambling・typeiseverything.Withthedevelopmentofthegamblingindustryinthecity,thegamblingindustrycompaniesandservicesforthegamblingindustry,theater,theater,concerthall,ballroom,giftshopshaveopened.Thereowntelevisionandradiostation,youcanalwaysplaycasinonews,teachgamblingskills.
