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Macau Galaxy, Blind Box, 分工：谢睿君：负责银河集团财务分析周子茜：负责银河集团相关信息检索及物理模型文字版初稿 …

- - - - Low in general
        
        Rely on fixed type of inputs
        
        Supplier's bargaining power ↓
        
        Clue: Casinos only needs slots, pokers, gaming machineries, etc.
        
        Large in scale
        
        Supplier's bargaining power ↓
        
        Clue: Aggregated revenue from gaming in fiscal year 2021 excess MOP $140B
        
        Scattered suppliers
        
        Supplier's bargaining power ↓
        
        Clue: The lagest supplier of Casino only accounts for 7% of total procurement (Data sourse: Bloomberg Supply Chain database）
    - - High in general
        
        Positive Factors
        
        Each hotel and restaurant itself is small in scale
        
        Clue: No hotel have more than 3000 rooms in Macau
        
        Merge Procurement System
        
        Hotels can purchase different type of inputs from same suppliers, e.g., shampoo and soap, to increase total procurement from one supplier, thereby decreasing supplier power
        
        Each hotel or restaurant relys on various types of inputs
        
        Clue: One restaurant have to procure more than 300 ingredients for 100 dishes
        
        End to End Supply Chain Management System
        
        To guarantee the supply chain safety of different inputs through visualization and flexibility
        
        So many hotels and restaurants inside the industry
        
        clue：More than 1000 hotels in Macau in total
        
        Automated Procurement system
        based on exclusive supplier contract
        
        To prevent supply cut-off
        
        No backward integration capability
        
        Clue: hotels in macau would not and have no potential to produce beddings itself
        
        Supply Chain Integration System
        
        To collaborate with upper-stream suppliers
        
        Negative Factors
        
        Hotels and restaurants can rely on the inluence of Galaxy
    - - Medium
        
        Suppliers are large and limited in number
        
        Supplier's bargaining power ↑
        
        Clue: Suppliers are limited to 4 lounge management companies
        
        Government is now limiting the influence of lounges
        
        Supplier's bargaining power ↓
        
        Clue: New gaming act regulates that lounges cannot directly share gambling income with casinos
  - - - Low
        
        Buyers have to observe all game rules by casino
    - - Middle
        
        A large proportion of revenue is generated through lounges, or VIPs
        
        50% of gambling revenue was from lounges in 2021
        
        Customer Profile Collection System
        
        To offer customized service and increase their viscosity
        
        Lounges can also function as attractions to potential customers, esbecially high-end customers
        
        Over 70% of main customers ( Personal asset more than RMB 100m) are VIPs in lounges
    - - High
        
        Customer have so many choices in Macau
        
        Targeted Advertising
        
        To limit customer's choices and increase sales
- - - - Positive Factors
        
        Competitors are large in scale
        
        Though ranks 1st in gaming, its gaming revenue is only 15%higher than the second, Sanos China
        
        Buyer's switching cost is low
        
        Customers would sacrifice almost nothing to select another casino
        
        E-membership Management System
        
        To enhance customer viscosity
        
        High in general
        
        The exit cost is extremely high due to high financing costs
        
        Even in tough time like fiscal year 2020, no gaming enterprise quitted
        
        Financial Risk Management System
        
        To strengthen the anti-risk capability to prevent financial crisis
      - Negative Factors
        
        Legal restriction
        
        Macau Government allows no more than 6 gaming enterprises
    - - Positive Factors
        
        Number of competitors is large
        
        Macau in all has 33 5-star luxury hotels and more than 30 high-end hotels
        
        Targeted industrial research platform or organization
        
        To help dig out the strengths and weaknesses of competitors ang build up competitive advantage
        
        Buyers' swithcing cost is nearly 0
        
        There does not exist mature membership system in any hotels
        
        Collaborated membership system with hotel groups like Marriot, Hilton, etc.
        
        Share customer profile with hotel groups to provide more customized service
        
        Services are highly differenciated
        
        e.g., Hotel NUWA mainly focus on traditional Chinese elements, while Conrad features itself with Western elegance
        
        Database or data collection platform for competitor research group
        
        To help provide both what competitors have and what competitors do not have for customers
        
        High in general
      - Negative Factors
        
        Low demand growth
        
        Occupancy rate in 2021 does not rise significantly, remains about 40%
        
        Fixed preference
        
        Buyers tends to stay in hotels near their targeted casinos
  - - - Lottery
        
        Medium
        
        Positive Factors
        
        Offer more favrable choices
        
        e.g., Super Lotto, Mark Six, Football & Basketball Pool
        
        Customer Information System (CIS)
        
        1 more item...
        
        Can be purchased everywhere
        
        e.g. Convenience stores may sell lotteries
        
        Geographic Information System (GIS)
        
        1 more item...
        
        Online agent platform
        
        1 more item...
        
        Negative Factors
        
        Strictly restrained by government and policies
        
        e.g. Lottery Management Regulation prohibits online sales of lottery in mainland China
        
        Cannot instantly satisfy gambler mantality
        
        e.g. buyers have to wait for the result of a football match to know whether they have won the bonus or not
      - Online Gambling
      - Poker, Mahjong, Online games, etc.
    - - Budget Hotels
        
        Low
        
        High-end customers
        
        They focus more on customer experience rather than price
        
        Convenience
        
        Customers can easily reach casinos whenever they want
        
        Marketing Mix
        
        Galaxy would give away some rooms to royal customers and VIPs
      - Restaurants outside casinos
        
        Low
        
        Convenience
        
        Customers can easily reach casinos whenever they want
        
        High-end customers
        
        They focus more on taste rather than price
  - - - Positive Factors
        
        Genting Group
        
        Genting Group Malaysia has now become a giant in gaming industry with its market value more than $30B
        
        Possible Tools to help
        
        E-marketing System
        
        To occupy and consolidate market share in China mainland through online marketing, e.g., on Tourism Bureau website, Ctrip, etc.
        
        Digital Operations System or Enterprise Resourse Management System
        
        To allocate resources to different process more effectively based on big data, machine learning, etc., to reduce management expenses inside the giant company.
        
        FinTech System
        
        To manage cashflow and investment through efficient algorithms in order to maintain financial health of the entire company
        
        Legalization
        
        Expect for Thailand, all countries in South-east Asia has leagalized, or discriminalized gambling
      - Negative Factors
        
        Limitation by Macau Government
        
        Macau Gambling Act restricted the number of enterprises in the gaming industry to be no more than 6
        
        Capital Barrier
        
        To enter the gaming industry in Macau, it is required that the gaming enterprises to have no less than MOP $5B, which only a small number of companies can reach the requirement
        
        Technical Barrier
        
        Macau now has the best actuaries in gaming industries to develop the most profitable rule. Top actuaries are hard to find or develop.
        
        Market Barrier
        
        Casinos in Macau has oligopoly in mainland China market for nearly 2 decades, which generates more than 70% revenue annually
- - - - e.g. Pop Mart could be purchased in shopping malls
        
        Investment invitation System
        
        To attract sellers with similar products to shopping mall inside Galaxy
    - - e.g. Playing Mahjong and online games helps in approaching friends
        
        AI Game Development
        
        To create profitable multiplayer games where gamers can play with each other
  - - - e.g. Betting is only legitimate within RMB 200 in China
    - - e.g. Many gamblers can feel delighted only when they win a great amount