A SWOT analysis helps a business identify its strengths, weak points, opportunities, and threats. US casinos can use these factors to measure the competitive advantage they have. It is a key strategy that casinos can use to build new products, improve others, and design effective marketing strategies. The US casino industry is competitive, but the gambling companies that know how to use the SWOT analysis well will stay above the competition.
Michigan’s online casino industry is growing
Despite tough competition, MI online casino industry is one of the best performers. By September 2022, the online casino sector in the state recorded 34.2% year-to-year growth in adjusted gross receipts for internet gaming. Gamblers in the state embraced online casinos from the day they were launched in January 2021.
Internal factors
To understand how to do SWOT analysis, first look into the internal factors affecting the business and then external. Internal factors are the Strengths and Weaknesses of the business. External factors are Opportunities and Threats.
Strengths
Casinos in the US enjoy a strong distributed market and record positive returns on capital expenditure through the building of new revenue streams. The control boards have put in place elaborate casino licensing procedures and guidelines. The casinos are automated, which allows consistency in quality service delivery. They have strong support from the communities around them. They have invested in skilled human resources, which is a major advantage to the casinos. The casinos are innovative, and they keep inventing new products.
Weaknesses
When an online casino identifies its weaknesses, it can start improvement strategies. Casino employees leave their work at a higher rate than most sectors. They leave to join other sectors due to various reasons, which makes it costly for the casinos to hire and train new employees often.
They do not invest enough in research and development compared to other sectors. They lack proper financial planning, which leads to unnecessary borrowing. The casinos are unable to deal with new entrants into the market. They lose a chunk of customers every time a new operator joins.
External factors
External factors are factors beyond the casino’s control, yet they impact the business. They can be political, economic, technological, and natural factors.
Opportunities
The casino’s online sector is thriving well, which is an excellent opportunity for gambling operators. The economy in the country is recovering, and gamblers are willing to spend more on betting. Evolving technology is helping casinos develop new products to attract more audiences.
Threats
The hourly wage is rising to a minimum of $15 an hour which is impacting the casino revenue. Disruptions in the supply chain are impacting the price of goods. Casinos have to raise the cost of services. Continuous profitability has attracted new business players, which is negatively affecting the revenue and growth rate.