In today’s world, technology is much dependent factor for everyone. From working to gaming, everyone is trying to use deep innovation in the technology. Gaming industry is booming now and still trying to record its high every time. As, dependency on the online gaming becomes necessity for the people for their free time. Aristocrat Leisure Limited is one of the leading Australian based scientific gaming company which was founded by Trevor Croker in 1953. Now, the company becomes one of the leading slot machine producer and gaming organization in the world and increasing its revenue year to year basis. There is a strong possibility in the industry and company could achieve it by focusing by using the competitive analysis through Porter’s Five Forces.
The gaming industry is one of the growing and highly profitable industry which contains various services like poker games, bingo, raffles and playing lotteries and casino game. Gaming industry also provides supports to many of the other interlinked businesses such as clubs, pubs, hotels, tourism and transportation and so on. The industry also contributes a strong influence on the country’s economy in terms of providing jobs, tax on revenues and so on. Such industry has strong impact on the Australian GDP (Impact of the Australian Gaming Industry on the Economy, 2020). Here, gaming simply refers to all the legal games which is permitted to do by the concerned states.
In the Country’s GDP, gaming machine industry contributes $8.32 billion in value added. Which is itself a huge contribution for the growth and prosperity. However, it is said that the market growth during 2015 to 2020 is expected -2.1% which is the alarming sound for the country. It was due to drop-off in VIP program play at the biggest operator of the market, Crown Resorts during 2017 and Singapore and Macau business operators were giving the tough competition to the Australian market (Casinos in Australia industry trends, 2020). Government needs to take one step forward to rebuild the policies and make this industry again attractive.
Aristocrat is striving hard to acquire more market share in the industry by way of using merger and acquisition strategy. With the help of this, it can lead in the market and capture more market in the industry. With opening at the large scale, it able to make more revenues by limiting its fixed costs. Company has acquired so many market players such as Big Fish Games Inc., Plantronics Inc., Video Gaming Technology. These are these famous brands in the market which collectively captured 10.15% market share (Casinos in Australia industry trends, 2020).
Company is strongly working in the research and development and trying to innovate more technology which allows it to gain competitive advantage over the competitors. However, due to the rich history in innovation, company maintain its leading position in the Australian market (ARISTOCRAT LEISURE LIMITED, 2020). In addition to this, company’s management is implementing various strategies to know the competitive positioning in the market. In the world of industry, Porter's model value chain is very popular.
However, by providing appropriate priority to all operations, the Aristocrat Leisure Limited should not be regarded as a fixed, independent structure. Aristocrat Leisure Limited must make sure that the successful study of value chains does not necessarily require fair inspection of all operations or functions (ARISTOCRAT LEISURE LIMITED, 2020). Consequently, the first step of the adaptation of the Porter Chain is to assess the significance of activities in the delivery process of the product as per their role. By using this strategy, company can analyses the market competitive forces in order to optimize the profitability.
The key operation chain importance list as suggested by Porter is as follows:
In the production and distribution of the goods to specific customers, the primary activities in the supply chain of Aristocrat Leisure Limited are directly involved. Key value chain research will boost Aristocrat Leisure Limited's efficiency as described below.
Figure 1: Value chain Analysis
Porter five forces are also used by the company to know the competitive positioning in the market. Porter five forces emphasis on five drivers through which competitive positioning of the company will assess (Porter’s Five Forces, 2020). Here, Aristocrat will keep close watch on their competitors by using this strategy. Its five drivers are:
Figure 2: Porter's Five Forces
As Aristocrat Leisure Limited does have mixed impact of their rivals. But company’s merger and acquisition strategy help to amalgamate most of the players which leads to create monopoly in the market and offers services at cheaper rates. This strategy helps out the business management to makes their strategy accordingly.
From the above-mentioned report, Aristocrat Leisure Limited competitive position mentioned along with the market overview. Management used value chain analysis and porter five forces for implementing competitive strategy for better knowing the competitive positioning in the market.
ARISTOCRAT LEISURE LIMITED, 2020 [Online]. Available through:
Casinos in Australia industry trends, 2020 [Online]. Available through:< https://www.ibisworld.com/au/industry/casinos/662/>.
Impact of the Australian Gaming Industry on the Economy, 2020 [Online]. Available through:
Ovidijus Jurevicius, 2020 [Online]. Available through:< https://strategicmanagementinsight.com/tools/value-chain-analysis.html>.
Porter’s Five Forces, 2020 [Online]. Available through:
Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help
1,212,718Orders
4.9/5Rating
5,063Experts
Turnitin Report
$10.00Proofreading and Editing
$9.00Per PageConsultation with Expert
$35.00Per HourLive Session 1-on-1
$40.00Per 30 min.Quality Check
$25.00Total
FreeGet
500 Words Free
on your assignment today
Get
500 Words Free
on your assignment today
Request Callback
Doing your Assignment with our resources is simple, take Expert assistance to ensure HD Grades. Here you Go....
🚨Don't Leave Empty-Handed!🚨
Snag a Sweet 70% OFF on Your Assignments! 📚💡
Grab it while it's hot!🔥
Claim Your DiscountHurry, Offer Expires Soon 🚀🚀