This research develops a strategic analysis of the hotel/ gaming industry in the United States as of late summer 1990. The findings of this analysis are presented in discussions related to (1) industry definition, and industry history, (2) external forces affecting industry performance, (3) competi tive structure, and marketing practices, (4) environmental threats and opportunities, and (5) investment requirements. Lastly, recommended strategic changes for the industry are developed on the basis of the findings of the strategic analy sis.
As the hotel/gaming designation indicates, the activities of this industry are no longer limited to the provision of lodging, food, and ancillary services (Standard & Poor's, 1990). Entertainment, convention facilities, and special accommodations for business and government guests have long been a part of a hotel's ancillary services. In the last decade of the twentieth century, however, entertainment, in the form of gaming, is of such great magnitude for some hotels that lodging and food services may almost be considered as ancillary ser vices for gaming activities. Further, the availability and
1 2quality of conference, and other special services for business and governmental guests in 1990 often are the determining cri teria for lodging site selection by such guests. Typically, the hotel/gaming industry does no better than track GNP (gross national product) growth (Clark, & Gerstein, 1987). Since 1977, however, the industry as a whole has not performed even this well (Sharav, 1990). In late summer 1990, the hotel/gaming industry is plagued by overcapacity (Sharav, 1990), and a softening economy (Value Line Investors Service, 1990).
EXTERNAL FORCES AFFECTING THE INDUSTRY
An organization's external environment has been described as an external coalition (Mintzberg, 1979). Included in this external coalition are (1) owners, assuming the organization is a publicly held company...