Research Paper on:
Hilton’s Gaming Business

Unformatted Sample Text from the Research Paper:
of 1995, Hilton was faced with the need to make decisions affecting the future of its gaming business. Gaming was a small part of the companys total revenues, and  in the mid-1990s, Hiltons only gaming sites in the United States were four sites in Las Vegas. At the time, it was investigating the feasibility of establishing gaming sites  in other US states and other parts of the world, including Australia, Egypt and Turkey. SWOT Analysis - Current Situation Strengths * Gaming accounts for more than one-third of Hiltons  overall sales; almost two-thirds of Hiltons operating earnings originate with its four casinos. * Hotel performance has recovered from its decline during the recession of the early 1990s. Weaknesses *  Hilton extends credit to lure gamblers away from other Las Vegas casinos, incurring bad debts. * Gambling began struggling as the economy emerged from the recession of 1991-92 (Christiansen, 1998).  * Gamblers expect casinos to offer free or low-cost food and drinks, increasing operating costs. Opportunities * Entertainment is associated with casinos, and the right entertainment can increase traffic into  the casino. * Revenues from table games declined 2.1 percent between 1995 and 1996, but revenues from slot machines increased 2.8 percent during the same period (Christiansen, 1998). * Casino  revenues increased 6.3 percent overall between 1995 and 1996. Threats * Gambling carries great risk (Sharav, Rho, Baade and Mitowski, 1994). * Competition is intense, and facilities require high capital  investment. * The wrong type of entertainment can decrease traffic into the casino, if not into the hotel. Available Alternatives Hilton can pursue  its plans for international casinos and continue targeting the convention market in Las Vegas, operating in the same manner as its competitors. The strongest positive trend among casinos in