Harrah’s Database Gamble Essay

Harrahs is the world largest provider of brand gambling casino entertainment it has around 25 million clients (2001) 25 casino with 40,000 childs prank machines in 12 states. For years it had been a fairly sm every playing period ships comp whatsoever just, by 2001, had emerged as the second largest in the industry. By the mid-1990s, the gambling Business was advantageously-to-do and it was difficult for Harrahs to survive in the markets collectable to intense opposition, so they came up with a scheme of introducing a client birth watchfulness (CRM) softw atomic number 18 which helps to ac go to sleepledge their guests exceptionally well.A CRM system coordinates all business shapees for dealing with guests, which in Harrahs case includes both gambling and hotel guests. .The boilers suit system Harrahs developed has been named WINet (Winners Information Network) . The breast of CRM strategy was customer loyalty program called total reinforcements . Harrahs CRM- based strategy appears to be a big(p) success. Harrahs say it keeps the customer schooling confidential and that it is not out to run gamblers.However, opponents of the gambling industry start criticized Harrahs use of customer data. Harrahs claims the resume Rewards program actually gives these people rewards sooner of encouraging them to gamble much. He set ahead clarified that All we used to know was how more money we made on each machine, but we couldnt concern what kind of customer used them , but with the help of engineering science he could press all the data of the customers.1. Analyze Harrahs using the competitive forces and value reach exemplifications.Harrahs is facing intense contention. This competition is coming from established competitors as well bran- new-made players Customers have many options in terms of how, when, and where they gamble. Harrahs is using its new business strategy to create a new gain, and catch its customers. Harrahs new info sy stem is having a strategical impact on its operations, sales and market, and service activities.2. Describe Harrahs business model and business strategy. How do they differ From those otherwise gambling companies?Harrahs business strategy is a customer kinship management strategy. (CRM). CRM system coordinates all business process for dealing with customers. Harrahs uses its CRM software program program to light upon and track its productive customers. Harrahs tote up Rewards program allows gathering information more or less its customers gender, age, location, games they like to play as well as reward its customers for the amount of clip that they spend gambling at Harrahs casinos. Harrahs competition relies on fancy reward schemes, due to which Harrahs is getting to know its customers by studying and analyzing their behavior.3. What role has database technology vie in Harrahs strategy? How lively is it to the success of the company?Database technology is the heart of Harrahs strategy. Harrahs database Record information about Harrahs customers, including gender, age, home location, favorite(a) games, length of playing time, size of bet, list 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 traffic his record is updated. Harrahs all casinos have access to the centralized database because of which Harrahs employees are able to view each customers record and offer that customer same treatment regardless of which casino the customer visit. Database technology helped them to gain a 13% profit in the rootage year itself.4. How did Harrahs use CRM software and modeling tools to scream the Companys problem?Harrahs uses CRM software to engineer business processes that deal with Customers. After combining its gambling and hotel reservations data, Harrahs uses its CRM software to gird gambling profiles for each of its customers, dissect the customer data, and create different marketing programs. Harrahs WINet system enables the company to estimate how much money the company can take in from a customer over a period of time.5. Are there any ethical problems raised by Harrahs use of customer data? develop your answer.There is an opportunity to gain more money by selling the customer data but Harrahs has express 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 dependency to spend more of his money, is obviously wrong. He Justify by saying that the gibe Rewards program actually gives these people rewards rather 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 rel ationship management software enable Harrahs to Maintain sharp customer profiles, analyze its data to identify the most profitable customers, improve its customer service, and offer agreeable 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 organizational issues, such as the duty period from a casino-focus to a Customer focus, spillage of privacy fears, and gambler exploitation criticisms.