MGM Resorts International is a holding company that owns and operates casino resorts. It offers gaming, hotels, conference rooms, restaurants, entertainment venues, shops, and other resort amenities. The company is widely represented in Las Vegas but also develops in Atlantic City, Mississippi, Maryland, Detroit, and other gambling zones in the United States. MGM is also one of the leaders in the Chinese resort of Macau and actively invests in it.
MGM Resorts International has a mass-market business model, that is, designed for the largest audience. This is a segment of the market of mass demand and supply of services, the consumers and buyers of which are representatives of the wide strata of society. Today mass market is one of the most profitable business strategies in the world. Around 78% of MGM’s revenue comes from the domestic market and 22% from China (“MGM Resorts CEO: Five strategic initiatives that transformed my company”). The advantages of MGM’s business model are quality recognized by experts and consumers around the world and branding services at affordable prices.
What concerns compensation strategy, MGM Resorts have increased its compensation packages to meet Wall Street and Silicon Valley requirements. According to CEO Jim Murren, they compete for world-class talents. They have also forged relationships with leading business schools and promoted their leadership in corporate social responsibility to resonate with a new generation of business leaders. Their employees include graduates from Google, JP Morgan, and other companies (“MGM Resorts CEO: Five strategic initiatives that transformed my company”). As a result, the casino revenue grows, sometimes even 100% in one year, which was the case, for example, in 2017.
As a result of successful business and compensation models, MGM Resorts continue to generate good income for its owners. It offers convenience, status, as well as risk and cost reduction for all its customers. Its structure is value-driven, intending to suggest a first-class offering through personalized service and frequent improvements. That is why high-level gaming consumers make up a large part of its customers. MGM Resorts International effectively invests in the company’s future development and implements several new large projects.
Reference
“MGM Resorts CEO: Five strategic initiatives that transformed my company.” Wharton Magazine, 2017, Web.