Malaysia's Genting: Gambling on the West
(7 pages of text)
Genting, a gaming company that monopolizes the Malaysian market, entered the U.K. gaming market in 2004 and faced competition from established players, different customer preferences across casinos in the United Kingdom, and changes in the British government’s gaming regulations. Genting had to rely on local management to run the business in the United Kingdom, as the market was still new to it. In operating casinos with different but established brand names to cater to different market needs, Genting faced the challenge of creating a single corporate identity. In spite of its challenges in the United Kingdom, Genting Malaysia has seized the opportunity to enter the U.S. market with its unique set of challenges, again through a local acquisition, with the strategic goal of continuous expansion of the gaming business in the United States. Is this the right move for Genting? What are the risks and opportunities?
This case can be used in international business and strategic management courses. It will help students understand the challenges that a company faces in geographic expansion through acquisitions. The case aims to highlight strategic challenges to a company’s entry into new markets, clear reasons to enter markets, problems in adapting to different cultures, and post-entry challenges stemming from less favourable environments caused by drastic changes in government policy. This case can be used to discuss the importance of understanding a foreign country’s business environment and market conditions, and preparing to face changes in financial and government policies.
Arts, Entertainment, Sports and Recreation
United Kingdom, United States, Malaysia, Large, 2010
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