Harrah’s Database Gamble Essay

Harrahs is the macrocosm largest provider of branded casino entertainment it has around 25 one thousand million guests (2001) 25 casino with 40,000 manoeuvre machines in 12 states. For years it had been a fairly small gambling club but, by 2001, had emerged as the punt 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 contestation, so they came up with a scheme of introducing a guest kindred caution (CRM) software system which helps to turn in their customers exceptionally well.A CRM system coordinates all business processes for relations with customers, which in Harrahs case includes both gambling and hotel customers. .The overall system Harrahs developed has been named WINet (Winners Information Network) . The heart of CRM dodging was customer faithfulness program called total rewards . Harrahs CRM-based strategy appears to be a huge success. Harrahs say it kee ps the customer schooling confidential and that it is not bulge to exploit gamblers.However, opponents of the gambling industry have criticized Harrahs use of customer data. Harrahs claims the issue forth Rewards program actually gives these people rewards instead of supporting(a) them to gamble more. He Further clarified that All we used to shaft was how much money we made on for each one machine, but we couldnt connect what kind of customer used them , but with the help of technology he could get all the data of the customers.1. Analyze Harrahs utilize the combative forces and value chain models.Harrahs is facing intense competition. This competition is coming from established competitors as well new players Customers have more options in terms of how, when, and where they gamble. Harrahs is using its new business strategy to create a new returns, and catch 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 discord 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 profit adequate customers. Harrahs Total Rewards program allows gathering information about its customers gender, age, location, games they want to play as well as reward its customers for the amount of date that they spend gambling at Harrahs casinos. Harrahs competition relies on fancy 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 comp some(prenominal)?Database technology is the heart of Harrahs strategy. Harrahs database Record information about Harrahs customers, inc luding gender, age, home location, Favorite games, duration of playing time, size of bet, number 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 record 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 deduct a 13% profit in the first year itself.4. How did Harrahs use CRM software and modeling tools to address the Companys task?Harrahs uses CRM software to organize business processes that deal with Customers. After combine its gambling and hotel reservations data, Harrahs uses its CRM software to build gambling profiles for each of its customers, lose it the customer data, and create different marketing programs. Harrahs WINet system enables the company to estimate how much money the company can earn from a customer over a period of time.5. Are there any ethical problems raised 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 provide not sell customer data to any organization. Some competitors criticized that Harrahs is exploiting gamblers, If this argument is true, then further 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 precipitate customer profiles, analyz e its data to identify the most profitable customers, change 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.