Harrah’s Database Gamble Essay

Harrahs is the world largest provider of branded cassino entertainment it has around 25 million nodes (2001) 25 casino with 40,000 turn machines in 12 states. For classs it had been a fairly small gambling company but, by 2001, had emerged as the second largest in the industry. By the mid-1990s, the gambling Business was flourishing and it was difficult for Harrahs to survive in the markets due to intense competition, so they came up with a strategy of introducing a customer human relationship management (CRM) software which helps to know their customers exceptionally well.A CRM system coordinates all wrinkle influencees for dealing with customers, which in Harrahs case includes both gambling and hotel customers. .The boilersuit system Harrahs developed has been named WINet (Winners Information Network) . The heart of CRM strategy was customer loyalty program called total rewards . Harrahs CRM-based strategy appears to be a great success. Harrahs say it keeps the customer inf ormation confidential and that it is not out to exploit gamblers.However, opponents of the gambling industry have criticized Harrahs use of customer entropy. Harrahs claims the Total Rewards program actually gives these population rewards instead of encouraging them to gamble more. He Further clarified that All we used to know was how a great deal money we made on each machine, but we couldnt connect what kind of customer used them , but with the help of technology he could cross all the data of the customers.1. Analyze Harrahs using the competitive forces and value chain models.Harrahs is facing intense competition. This competition is coming from established competitors as well new players clients have many options in terms of how, when, and where they gamble. Harrahs is using its new business strategy to create a new service, and overpower its customers. Harrahs new information system is having a strategic impact on its operations, sales and marketing, and service activities .2. Describe Harrahs business model and business strategy. How do they differ From those other gambling companies?Harrahs business strategy is a customer relationship management strategy. (CRM). CRM system coordinates all business process for dealing with customers. Harrahs uses its CRM software to identify and track its profitable customers. Harrahs Total Rewards program allows gathering information about its customers gender, age, location, games they the like to play as well as reward its customers for the amount of time that they spend gambling at Harrahs casinos. Harrahs competition relies on externalize reward schemes, due to which Harrahs is getting to know its customers by studying and analyzing their behavior.3. What role has database technology played in Harrahs strategy? How Critical is it to the success of the company?Database technology is the heart of Harrahs strategy. Harrahs database Record information about Harrahs customers, including gender, age, home location, Favorite games, length of playing time, size of bet, bet of bets, average size of the bet, and total points. Harrahs uses information for its business Processes to create marketing programs for its customers and also retaining in its customers each time a customer makes a transaction his go into is updated. Harrahs all casinos have access to the centralized database because of which Harrahs employees are able to view each customers record and offer that customer same treatment regardless of which casino the customer visit. Database technology helped them to plus a 13% profit in the first year itself.4. How did Harrahs use CRM software and modeling tools to address the Companys problem?Harrahs uses CRM software to organize business processes that deal with Customers. After unite its gambling and hotel reservations data, Harrahs uses its CRM software to build gambling profiles for each of its customers, analyze the customer data, and create different marketing programs. Harrahs WI Net system enables the company to aim how much money the company can earn from a customer over a period of time.5. Are there any ethical problems raise by Harrahs use of customer data? Explain your answer.There is an opportunity to gain more money by selling the customer data but Harrahs has said that it will not sell customer data to any organization. Some competitors criticized that Harrahs is exploiting gamblers, If this argument is true, then encouraging a person with a gambling addiction to spend more of his money, is obviously wrong. He Justify by saying that the Total Rewards program actually gives these people rewards instead of encouraging them to gamble More.6. What problems can database technology and customer relationship Management software solve for Harrahs? What problems cant they address?The database technology and customer relationship management software enable Harrahs to Maintain sharp customer profiles, analyze its data to identify the most profitable customer s, mend its customer service, and offer consistent customer service. The database technology and customer relationship management software help Harrahs achieve a competitive gain in the gambling industry. The database technology and customer relationship management software cannot address organizational issues, such as the switch from a casino-focus to a Customer focus, loss of privacy fears, and gambler exploitation criticisms.