Hilton Hotels owns, manages and/or franchises hotels and casino-hotels
and inns across the world. It also sells furnishings, equipment and
supplies to hotels, motels, and inns and operates a computerized
reservation system. Recently, Hilton's hotel business is prospering with
above-industry occupancy rates and an improved average daily rate.
However, previously prosperous gaming operations are suffering from an
Hilton has adopted a single-brand, multi-product line development and
marketing strategy that targets all types of travelers. It customizes its
hotel services by purpose of visit and origin of guest. It has already
invested heavily in the concept of packaging gaming with theme
entertainment and expects to make additional substantial investments over
Both hotel and gaming operations are extremely competitive. But, the
gaming industry presents more risks than do hotels for several reasons.
First, the degree of investment required to be successful is high to keep
up with the pace of competitors. And, much of this investment is in the
packaging of gaming with theme entertainment which isn't always successful
because each serves different consumer needs and requires different
management strategies. Secondly, casinos must often extend credit to their
customers to lure them away from other casinos. Thus, bad gaming debts and
reductions in operating income from gaming are not uncommon.
|Strength |Weaknesses |Opportunities |Threats |
|Large Global |Poor Branding |Budget, Middle |Leadership By |
|Corporation |and Identity |or Premium |Competitors in |
| | |Market Growth |Individual |
|Focus on Core |Investments in | |Market Segments |
|Competency |Stagnant Gaming | | |
| |Industry | | ...