This document is a market analysis of the MGM Grand hotel and casino in Las Vegas, Nevada. It finds that while the MGM Grand is very successful in entertainment, bringing in over $1.9 billion in annual net income, only 25% of entertainment attendees actually stay at the hotel. The analysis recommends that MGM Grand improve its hospitality offerings and target packages combining entertainment and hotel stays to attract more guests and compete better with other luxury hotels on the Strip.

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A Market Analysis for
MGM Grand
Enrico Guasti
Full Sail University
Project & Portfolio II: Business and Marketing
03.03.2019

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EXECUTIVE SUMMARY
This is a market analysis for the MGM Grand a hotel/casino owned by MGM Resorts
International based in Las Vegas, Nevada. The report will show MGM’s financial success and
achievements in the entertainment industry that would be essential for the strategy that is going
to be built around the company’s culture. This report will show net incomes, revenues and data
collected by resources that will be extremely useful for this new strategy that will increase the
number of guests staying in the hotel. In the end of the report, the recommendations will show
exactly what’s being planned based on the capitalization and recent success of MGM Grand to
draw the attention for the targeted audience.

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OBJECTIVE
The reason for this report is to help the MGM Grand to innovate their hotel attractions to
persuade their clients that are often choosing other hotels instead of staying at the MGM Grand.
The objective is to overcome the problem of being a place only for entertainment, and letting
people trust on the hospitality at the same level they trust at the entertainment events that MGM
provides. Every data collected, surveys and information based on the clients gives MGM the
opportunity to rebuild their culture on the environment to provide better deals for clients that are
looking for entertainment and hospitality in the same place. The idea is to provide packages that
includes hospitality, entertainment attractions and casino, giving more liberty to the clients to
choose the package they want including all the attractions and hospitality they are looking for,
this is a great way to bring clients back and rebuild the trust that MGM has in the market.
RESEARCH METHODOLOGY
All the information collected is going to be based on the client’s expectations and
satisfaction with the hospitality. The research is based on the information provided by guests and
critics that are decided to help MGM Grand to achieve its objectives by receiving a feedback
from the people that visits the hotel constantly and care about the well-being in the environment.
Most of the key information has been found and all the pieces collected will be extremely
important for the development of the market research that allows MGM Grand to have the
perfect strategy to attract more people to hotel and casinos. The research will be made by surveys
and data collection of everything that happens in the hotel, casino and at the events arena.

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RESEARCH AND KEY FINDINGS
MGM Grand is a hotel operated by MGM Resorts International that has an annual net
income around US$ 1.96 billions meaning that is
a company in very good shape that has a strong
market value and owns hotels around the world,
and MGM Resorts International main market is
Las Vegas where the company owns MGM
Grand, The Bellagio, The Signature, Mandalay
Bay, Park MGM and Aria. MGM Grand is
competing with the hotels that are owned by
MGM Resorts, but not forgetting that Las Vegas has
a gigantic diversity of hotels that provide the best
hospitality and entertainment (Wall Street Journal).
The MGM Grand is famous for having great
entertainment attractions and the Grand Garden
Arena has capacity for 16,800 people that are
fanatics for fights like boxing and UFC, or for great
shows like Lady Gaga and Calvin Harris that were
resident for while at the hotel. Magicians are always welcome, and people pay expensive one
single ticket to see David Copperfield or Cirque Du Soleil, the first still an attraction at the arena
and people that visit Vegas always put the magician in the “to do list”.
All these entertainment venues and attractions offered by the MGM Grand is the best
support the company could have to increase the hospitality in the hotel, because using MGM
David Copperfield is an attraction at the MGM Grand
since 2002.
The Grand Garden Arena is the home of UFC Fight
Nights.

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Grand as the hotel with best entertainment content in Las Vegas already bring people to the
hotel, but according with Forbes, 75% of the people that buy tickets to go to watch an event at
the entertainment venue are not hosted at the MGM Grand (Forbes). The strategy is to use these
stats in the favor of MGM Grand to build packages that would be perfect for the visitors that are
looking for the best content of entertainment in Las Vegas and a decent hospitality for a good
cost; including weekends, summer vacations and event stay-in which allows the guest to
purchase a hospitality for the event planned to attend.
Recently MGM Grand
expanded the Conference Center that
will allow the hotel to host bigger
business events that will increase the
hospitality in the hotel. With the
completion of MGM Grand’s $130
million, 250,000-square-foot
expansion, MGM Resorts now offers a total of 4 million square feet of leading meeting and
convention space within a two-mile stretch on the Las Vegas Strip (ITCM). That’s a great
opportunity for the company start to think what it needs to be improved in the hospitality sector
that would make people feel that they want to be a client of MGM Grand, and with this
Conference Center the hotel is going to be able to rebuild a culture looking forward to
persuading the clients for a better experience at the MGM Grand.
One of the biggest issues of rebuilding the culture of MGM Grand by being the main
attraction in Las Vegas increasing the number of guests, is that MGM Resorts don’t see MGM
The 2018 Billboard Music Awards is going to be at the Grand Garden
Arena.

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Grand as their main priority in Vegas, according to the Wall Street Journal, MGM Resorts
International has made more investments at their main hotels in Las Vegas, The Bellagio and
Aria, where both are considered one of the most luxurious hotels in the Strip (Wall Street
Journal). The challenge is to overcome this issue is to convince MGM Resorts International that
the MGM Grand needs an improvement at the hospitality sector match the interests with people
that are attending the hotel only for events. Convincing the owners that MGM Grand could be
their biggest priority is really hard but creating a system that would convince them that it’s
possible to increase the number of guests that are interested in the hospitality and entertainment
offered by the hotel.
CONCLUSIONS
MGM Grand is one of the biggest hotels in Las Vegas that are losing clients for having a
“old style” hospitality which involves the creation of new luxury hotels around the Strip that
makes people be incredibly shocked by all the hospitality content the competitors have. The
entertainment venues and casinos are always crowded at the MGM Grand which makes the hotel
the main point for entertainment attractions in Las Vegas. Fight Nights, Awards Shows,
Concerts, Magicians and the casino itself could be extremely important for new strategy of how
bring more guests to be hosted in the hotel making them purchase a package that contains
hospitality and entertainment events offered by MGM Grand.
The entertainment venue is certainly the most visited place at MGM Grand and all the
attractions provided by the hotel are extremely big and the search for tickets for these events are
always insane. To make it more exclusively for the guests that are hosted at MGM Grand the

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strategy of having multiple packages that matches entertainment and hospitality will be the key
to increase the number of guests in the hotel.
To conclude this report is important to consider that MGM Grand is a hotel owned by
MGM Resorts International and the brand itself needs to explore new contents for better
hospitality but keeping in mind that the main business at MGM Grand are the entertainment
attractions and this what makes MGM Resorts International to avoid better hospitality like Aria
and Bellagio, that the main focus of hospitality for the company.
RECOMMENDATIONS
It’s recommended that MGM Grand rethink its culture by convincing MGM Resorts
International to make it a priority of expanding the quality of hospitality at the hotel causing
better impression from visitors that only look at MGM Grand as a big hotel with good
entertainment events, and the strategy is to show that the hotel is more than that and provides an
excellent quality of hospitality that can make feel comfortable like in their own home. The
company also should target gambling people and offer better deals in the casino that will also
increase the number of guests staying in the hotel, it’s important to persuade the clients with
good deals and packages that are worthy for their pockets and the vacation time in Las Vegas.
Business conferences and entertainment events are the key to bring more guests to the hotel, and
it’s important to include this people at new strategy by designing packages that includes
hospitality and entertainment events for the time they are staying at the hotel, this make it easier
for them to decide where to stay with a strong possibility to choose MGM Grand because of the
deals that are being offered for the date.

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REFERENCES
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MGM Resorts International Common Stock (MGM). (n.d.). Retrieved from
https://www.nasdaq.com/symbol/mgm
MGM Resorts Profit Margin 2006-2018 | MGM. (n.d.). Retrieved from
https://www.macrotrends.net/stocks/charts/MGM/mgm-resorts/profit-margins
(n.d.). Retrieved from
https://www.sec.gov/Archives/edgar/data/789570/000156459017003007/mgm-
10k_20161231.htm
The Mansion, MGM Grand, Las Vegas. (n.d.). Retrieved from
https://www.forbes.com/pictures/fjee45jhg/the-mansion-mgm-grand-las-vegas/#6d148fea42b1
(n.d.). Retrieved from https://quotes.wsj.com/MGM/financials
MGM. (n.d.). Retrieved from https://www.mgm.mo/en
(n.d.). Retrieved from https://www.sec.gov/cgi-bin/browse-edgar?company=MGM Resorts
international&owner=exclude&action=getcompany
Aug 31 – 9:30 PM. (n.d.). David Copperfield. Retrieved from
http://lasvegas.eventful.com/events/david-copperfield-/E0-001-064972356-3@2019062916
Group, I. N. (n.d.). 08/20/12. Retrieved from https://issuu.com/i-
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Chenery, M. (2019, March 01). MGM Grand Conference Centre expansion completes. Retrieved
from https://www.incentivetravel.co.uk/news/arenas-and-conference-centres/46586-mgm-grand-
conference-centre-expansion-completes