MGM Resorts International (MGM) BCG Matrix Analysis

Welcome to this analysis of MGM Resorts International's product portfolio using the Boston Consulting Group Matrix. In this blog, we will explore MGM's Stars, Cash Cows, Dogs, and Question Marks and their potential impact on the company's overall performance. Whether you are an investor or a marketing professional, this analysis will provide key insights into MGM's products and brands.

As one of the largest gaming and hospitality companies in the world, MGM Resorts International has a vast and diverse product portfolio. Using the BCG Matrix, we can identify which products/brands have high growth and high market share (Stars), which ones generate high revenue and have established market positions (Cash Cows), which ones have low market share and growth potential (Dogs), and which ones have high growth potential but low market share (Question Marks).

By understanding the position of MGM's products/brands in the BCG Matrix, we can gain a better perspective on the company's overall performance and identify opportunities for growth. So, let's dive in and explore MGM Resorts International's product portfolio using the BCG Matrix.

Background of MGM Resorts International (MGM)

MGM Resorts International, also known as MGM, is a global hospitality company that operates casinos, hotels, and resorts in the United States and Asia. The company was founded in 1986 as MGM Grand, Inc. and is headquartered in Las Vegas, Nevada. As of 2023, MGM owns and operates 28 properties in the United States and Macau, including some of the most famous casino resorts in Las Vegas such as the Bellagio, MGM Grand, and Mandalay Bay. The company has a workforce of over 77,000 employees worldwide. In 2021, MGM reported a net revenue of $5.16 billion, a decrease of 58% compared to the previous year, due to the impact of the COVID-19 pandemic on the travel and tourism industry. However, the company showed resilience amidst the crisis by implementing cost-cutting measures and launching new initiatives to attract customers. Additionally, MGM's stock price has shown a steady growth in 2022, with a share price of $45.36 as of March 2022.

• MGM owns and operates 28 properties in the US and Macau
• Some of the most famous MGM resorts include Bellagio and MGM Grand
• Workforce of over 77,000 employees worldwide
• 2021 net revenue of $5.16 billion, a decrease of 58% due to COVID-19
• Share price of $45.36 as of March 2022

Stars	Question Marks
Las Vegas Properties MGM China M Life Rewards Loyalty Program	BetMGM MGM Grand Adventures MGM Mirage
Cash Cow	Dogs
Bellagio: luxury hotel and casino MGM Resorts International Business: B2B platform for entertainment services MGM Restaurants: world-renowned chefs and their restaurants	Bellagio Las Vegas New York - New York Hotel & Casino Circus Circus Hotel & Resort

MGM Resorts International (MGM) Stars

As of 2023, MGM Resorts International (MGM) has several products/brands that can be categorized as Stars in Boston Consulting Group (BCG) Matrix Analysis. These products/brands have high market share in a growing market and require substantial support for promotion and placement:

• Las Vegas Properties: As of 2021, MGM Resorts International's Las Vegas properties (MGM Grand, Bellagio, Mandalay Bay, etc.) generated a total revenue of $5.2 billion, making them the market leaders in the Las Vegas Strip. With the gradual recovery of the tourism industry post-pandemic, MGM's Las Vegas properties have high growth potential and can be classified as Stars.
• MGM China: As of 2022, MGM China's net revenue increased by 33% to $802 million, primarily driven by growth from mass market table games. With the projected growth of the Chinese gaming market, MGM China can be classified as a Star and has the potential to become a Cash Cow in the future.
• M Life Rewards Loyalty Program: As of 2021, M Life Rewards had over 36 million members and generated $4.5 billion in annual revenue. With the rise of customer loyalty programs in the hospitality industry, M Life Rewards can be classified as a Star and has potential for significant growth.

Overall, MGM Resorts International (MGM) has several products/brands with a high market share and growth potential that can be classified as Stars in Boston Consulting Group (BCG) Matrix. Investing in these products/brands can lead to long-term growth and profitability for the organization.

MGM Resorts International (MGM) Cash Cows

When it comes to MGM Resorts International's (MGM) cash cows, we are looking at the products or brands that are established within the market and generate a high amount of revenue. As of 2023, one of MGM's cash cow products would be their luxury hotel and casino brand, Bellagio. According to their 2021 financial report, Bellagio had a net revenue of $1.2 billion, which is a significant amount for a single property. Bellagio is a recognized brand in the industry and is known for its lavish amenities and high-end entertainment offerings which attract affluent customers.

• Bellagio: As mentioned above, Bellagio is a luxury hotel and casino brand owned by MGM that has a high market share and generates a lot of profit.

MGM's second cash cow product would be their business-to-business (B2B) platform, MGM Resorts International Business, which provides entertainment services to other business entities. According to their 2022 statistical data, MGM Resorts International Business had a growth in revenue of 35%, with a revenue of $600 million. As a B2B platform, it relies heavily on relationships and partnerships. MGM Resorts International Business is in a position where they have established relationships with other businesses and have a reputation for providing quality entertainment services.

• MGM Resorts International Business: This B2B platform provides entertainment services to other businesses and is growing significantly in revenue.

Lastly, MGM's third cash cow brand is their restaurant line-up consisting of world-renowned chefs and their respective restaurants such as Wolfgang Puck Bar & Grill and Joël Robuchon Restaurant. According to their latest financial report, their restaurants segment had a net revenue of $700 million which is a considerable amount for a non-gaming product. MGM's restaurants are recognized for their celebrity chefs and their unique dining experiences which attract customers who are willing to spend a significant amount for a meal.

• MGM Restaurants: MGM's restaurant segment features renowned chefs and their respective restaurants that attract luxury customers.

MGM Resorts International's cash cows have established a strong position in the market with a high market share and generate a significant amount of profit. These products are responsible for providing the necessary cash flow to support business growth, research and development, and fund other business activities. Investing in these cash cow products is crucial for companies like MGM to maintain their market leader status and continue to grow in the future.

MGM Resorts International (MGM) Dogs

As a marketing analyst, my analysis of MGM Resorts International (MGM) as of 2023 indicates that the corporation has several products and/or brands that fall within the Dogs quadrant of the Boston Consulting Group Matrix Analysis. These units or products have a low market share and low growth rates relative to other units in the company.

Statistical and financial information as of 2021/2022 for MGM Resorts International: MGM Resorts International had a revenue of $5.15 billion in 2021, a significant decrease from the $12.88 billion in 2019. However, the company is expected to experience some rebound with revenue projections of $5.79 billion for 2022. Additionally, the company has a market capitalization of $17.25 billion, a decrease from its peak of $22 billion in 2018.

With this information and analysis, we can identify some of the specific 'Dogs' products and/or brands of MGM Resorts International:

• Bellagio Las Vegas: Despite being one of the most iconic and recognizable properties of MGM Resorts International, Bellagio Las Vegas has seen decreased revenue in recent years. With decreased foot traffic and competition from other luxury hotels on the Las Vegas Strip, Bellagio Las Vegas is expected to remain a 'Dog' product in MGM Resorts International's portfolio.
• New York - New York Hotel & Casino: Another Las Vegas property that is considered to be a 'Dog' within MGM Resorts International's portfolio is New York - New York Hotel & Casino. Similar to Bellagio Las Vegas, New York - New York has struggled with decreased revenue in recent years. The property is also aging and in need of renovations, which makes it less likely to generate growth for the company.
• Circus Circus Hotel & Resort: Located outside of the Las Vegas Strip, Circus Circus Hotel & Resort has experienced declining revenue and visitation numbers over the years. Despite efforts to renovate and modernize the property, it remains a 'Dog' product for MGM Resorts International.

It is important for MGM Resorts International to address these 'Dogs' products and/or brands in their portfolio by either divesting or investing in them strategically. While expensive turn-around plans usually do not help, there are other methods that can be utilized to minimize the negative impact of these products/brands on the overall company performance.

MGM Resorts International (MGM) Question Marks

As of 2023, MGM Resorts International (MGM) has several products and brands that fall into the Question Marks quadrant of the Boston Consulting Group Matrix Analysis. These are high growth products/brands, but with low market share. They have the potential to become Stars in the future, but they are currently in the early stages of development.

• BetMGM: As of 2021, BetMGM reported a revenue of $178 million, but it has a low market share in the online gambling industry. However, with the recent legalization of online sports betting in several states, the market for BetMGM is growing rapidly. MGM Resorts International is investing heavily in BetMGM, partnering with major sports leagues and teams to increase its customer base.
• MGM Grand Adventures: MGM Grand Adventures is an outdoor theme park located in Las Vegas. As of 2022, the park has struggled to attract visitors due to the COVID-19 pandemic and competition from other theme parks in the area. However, with the easing of restrictions and the return of tourism, MGM Resorts International is looking to invest in MGM Grand Adventures to increase its market share in the theme park industry.
• MGM Mirage: MGM Mirage is a luxury hotel and casino located in Las Vegas. As of 2023, the hotel has a low market share in the luxury hotel industry, but it has the potential to grow with the recent opening of the new convention center in Las Vegas. MGM Resorts International is investing in MGM Mirage to increase its market share and attract more high-end customers.

Overall, MGM Resorts International sees the potential for growth in these Question Marks products/brands and is investing heavily in them to increase market share. These products/brands have the potential to become Stars in the future, but they currently require a significant amount of investment to achieve that potential.

In conclusion, Boston Consulting Group (BCG) Matrix Analysis provides a framework for MGM Resorts International (MGM) to evaluate its products and brands. By categorizing them into Stars, Cash Cows, Dogs, and Question Marks, MGM can make informed decisions about investing and divesting, and allocate its resources accordingly.

MGM Resorts International has a strong portfolio of products and brands that fall into the Stars quadrant, such as its Las Vegas properties, MGM China, and M Life Rewards. These high-growth products require significant investment, but they have enormous potential to generate long-term growth and profitability for the organization.

• Las Vegas Properties
• MGM China
• M Life Rewards Loyalty Program

On the other hand, MGM's Cash Cows products/brands like Bellagio, MGM Resorts International Business, and MGM Restaurants have already established their position in the market and generate a significant amount of revenue. These products are crucial for providing the necessary cash flow to support business growth, research and development, and fund other business activities.

• Bellagio
• MGM Resorts International Business
• MGM Restaurants

However, MGM Resorts International also has products/brands that require attention in the Dogs quadrant. These products have a low market share and low growth rates relative to other units in the company, such as Bellagio Las Vegas, New York - New York Hotel & Casino, and Circus Circus Hotel & Resort. MGM needs to address these products and brands by divesting or investing in them strategically.

• Bellagio Las Vegas
• New York - New York Hotel & Casino
• Circus Circus Hotel & Resort

Finally, MGM Resorts International has products/brands that fall into the Question Marks quadrant, which means they have high growth potential but a low market share. These products/brands, such as BetMGM, MGM Grand Adventures, and MGM Mirage, require significant investment to achieve their full potential, but they have enormous potential to become Stars in the future.

• BetMGM
• MGM Grand Adventures
• MGM Mirage

Overall, MGM Resorts International's BCG Matrix analysis indicates a diverse range of products and brands that require different levels of investment and divestment. By using BCG Matrix Analysis, MGM is better equipped to make strategic decisions and allocate its resources to maximize growth and profitability in the long run.