Harrah’s Database Gamble Essay

Harrahs is the world largest provider of branded casino entertainment it has around 25 million guests (2001) 25 casino with 40,000 swordplay machines in 12 states. For years it had been a fairly sm all(prenominal) caper society but, by 2001, had emerged as the second largest in the industriousness. By the mid-1990s, the free rein Business was flourishing and it was difficult for Harrahs to survive in the markets collectable to intense competition, so they came up with a strategy of introducing a client relationship management (CRM) parcel which encourages to know their clients exceptionally considerably.A CRM musical arrangement coordinates all occupancy processes for dealing with clients, which in Harrahs case includes some(prenominal) caper and hotel customers. .The overall trunk Harrahs developed has been named WINet (Winners training Network) . The heart of CRM strategy was customer loyalty design called total rewards . Harrahs CRM-based strategy appears to be a great success. Harrahs say it keeps the customer tuition confidential and that it is not out to exploit gamblers.However, opponents of the gambling industry have criticized Harrahs use of customer entropy. Harrahs claims the Total Rewards plan actually gives these people rewards instead of back up them to gamble much. He pass on clarified that All we used to know was how much cash we do on each machine, but we couldnt connect what kind of customer used them , but with the help of engineering he could get all the data of the customers.1. Analyze Harrahs using the competitive forces and value chain models.Harrahs is facing intense competition. This competition is coming from established competitors as well impertinently players Customers have many options in terms of how, when, and where they gamble. Harrahs is using its new business strategy to relieve oneself a new service, and catch its customers. Harrahs new information system is having a strategical impact on its o perations, sales and marketing, and service activities.2. Describe Harrahs business model and business strategy. How do they differ From those other gambling companies?Harrahs business strategy is a customer relationship management strategy. (CRM). CRM system coordinates all business process for dealing with customers. Harrahs uses its CRM software to station and track its meshingable customers. Harrahs Total Rewards program allows gathering information nigh its customers gender, age, location, games they like to play as well as reward its customers for the amount of time that they spend gambling at Harrahs casinos. Harrahs competition relies on fancy reward schemes, callable to which Harrahs is getting to know its customers by studying and analyzing their behavior.3. What role has database technology played in Harrahs strategy? How Critical is it to the success of the company?Database technology is the heart of Harrahs strategy. Harrahs database Record information about Harrah s customers, including gender, age, home location, Favorite games, length of playing time, size of bet, look of bets, average size of the bet, and total points. Harrahs uses information for its business Processes to create marketing programs for its customers and also retaining in its customers each time a customer makes a transaction his record is updated. Harrahs all casinos have inlet to the centralized database because of which Harrahs employees are able to view each customers record and offer that customer same treatment irrespective of which casino the customer visit. Database technology helped them to gain a 13% profit in the first year itself.4. How did Harrahs use CRM software and mould tools to address the Companys problem?Harrahs uses CRM software to set up business processes that deal with Customers. After combining its gambling and hotel reservations data, Harrahs uses its CRM software to build gambling profiles for each of its customers, analyze the customer data, and create distinguishable marketing programs. Harrahs WINet system enables the company to estimate how much money the company batch earn from a customer over a period of time.5. Are there any ethical problems raised by Harrahs use of customer data? Explain your answer.There is an opportunity to gain more money by selling the customer data but Harrahs has said that it will not sell customer data to any organization. Some competitors criticized that Harrahs is exploiting gamblers, If this argument is true, then encouraging a person with a gambling addiction to spend more of his money, is obviously wrong. He Justify by saying that the Total Rewards program actually gives these people rewards instead of encouraging them to gamble More.6. What problems can database technology and customer relationship Management software solve for Harrahs? What problems cant they address?The database Technology and customer relationship management software enable Harrahs to Maintain sharp customer pr ofiles, analyze its data to identify the most profitable customers, improve its customer service, and offer coherent customer service. The database technology and customer relationship management software help Harrahs achieve a competitive gain in the gambling industry. The database technology and customer relationship management software cannot address organisational issues, such as the switch from a casino-focus to a Customer focus, acquittance of privacy fears, and gambler exploitation criticisms.