CASE STUDY MGM MIRAGE 2007

Case Study MGM Mirage 2007

Case Study MGM Mirage 2007

SWOT Analysis

In all the proceeding cases, we analyzed the various levels of the external environment, moving through the remote, to the MGM Mirage 2007 and finally to the operating environment. Through doing this we saw where MGM Mirage 2007's potential opportunities and threats lay. We also applied Porter's Five Forces to asses the threats in the MGM Mirage 2007 environment.

Opportunity

The size, speed and growth rate of the Internet. The technology aspects of the remote external environment played a large role in opportunities for MGM Mirage 2007 at the time of the case study. Firstly, the projections for internet growth, 700 million users by the year 2000 (Jones 2004), showed a large potential for more customers for MGM Mirage 2007.

Strengths

Pricing Strategy. In using the value chain resource analysis one can see that the pricing structure could lower the overhead costs because there is no need for a large warehouse to hold inventory. The savings are in turn, used to enhance other features such as reviews and the software running MGM Mirage 2007's site. The savings from this are passed onto the consumer through lower prices on the products that MGM Mirage 2007 offers and more efficient service.

Weaknesses

Since MGM Mirage 2007 is nearly entirely computer based, it lacks a tangible location in the real world. Despite the fact that it has an office, it lacks a real world storefront. On resource analysis level, one might say this is a strength, however some customers might be suspicious of a lack of a physical location.

Vision and Mission

The mission statement also stated that MGM is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world . This statement can be subdivided to three parts which is their commitment, target market and business expansion. First, it is obvious that MGM is targeting only certain groups of market which are the educational sector, professional and consumers (MASON & MITROFF 1981). MGM is indeed committed to bringing the best personal computing experience as they always focus on the quality and uniqueness of their products. They have a motto which is to “think differently” to compete with its competitors. Lastly, through this mission statement - “around the world”, we can see the importance of global market and impact it has on MGM's products, manufacturers and producers. Globalisation allows the ...