Harrah Entertainment needs to decide how to maintain its competitive advantage in attracting, retaining, and regaining customers. Competitors have invested heavily in facilities and copied Harrah's strategies. Harrah relies heavily on customer relationship management (CRM) to understand customer needs better and target promotions cost-effectively. Analysis shows modest offers generate more gambling and focusing on top customers who generate most revenue is important. Harrah should continue leveraging its IT and consider investing in differentiating customer experiences based on analyzing the impact on revenue.

1. Harrah Entertainment Inc
By:
Sec –A, Group-12
Amit Pal Singh Bagga FT12187
Siddharth Yadav FT12163
Sushant Midha FT12165
Tushar Arora FT12168
Vikram Choudhary FT12172
Sec-A, Group 12 1

2. Problem Definition
Harrah needs to decide that how can they have and
maintain the competitive advantage in attracting new
customers, retaining the existing one and also getting
back the lost customers.
Additional Issues:
 Competitors have invested heavily in facilities and in many
parameters they are ahead of Harrah
 Competitors can copy Harrah’s strategy (with regards to
Database Marketing and Reward programs)
Sec-A, Group 12 2

3. Situation
 Customer loyalty was considered as their core
competency
 Harrah’s stock prices increased by 100% over the last
year
 Harrah's IT infrastructure and business applications
covered general information regarding customer
activities, analysis of the data, and promotional
activities taken up based on the data gathered.
 Harrah is relying heavily on CRM to get new
customers, retain the existing one and also to get back
the lost customers
Sec-A, Group 12 3

4. Situation
 From year 98-99
 only 2 active customers increased
 rise in revenue was 34.8%
 13 new customers and 13 attritions
 15 customers spending decreased by $4530
 74 loyal customers
 $22860 increase in revenue
 Repetitive gaming tendency
 Per customer revenue increased
Sec-A, Group 12 4

5. Alternatives
 Harrah Entertainment can continue to leverage the IT
infrastructure that it has developed and can try to
expand its reach by using more sophisticated
technology in understanding customers.
 Harrah can also invest in the properties that it has in
various geographical locations so that to differentiate
the experience for their customers as some of their
competitors are doing by offering “theme based”
accommodation.
Sec-A, Group 12 5

6. Solution
 We believe Harrah should use CRM to understand
customer needs better and try to look for the least
expensive way which adds value to customers the most.
 Based on analysis of data modest offer generated more
gambling
 More focus on selected customers as 26% of players generated
82% of revenue
 In addition to the above step Harrah may take up the
following step of investing in the facility depending upon
the analysis as how much importance does a theme based
or any other type of ambience help in increasing the
revenue for the company.
Sec-A, Group 12 6

7. Thank You
Sec-A, Group 12 7