The following report will show the failure of the Moroccan theme hotel Sahara which was located in Las Vegas. With the help of a SWOT analysis several internal and external reasons will be explained and evaluated in this report.
It will also consider how the hotel could have maintained competitive advantage by choosing an appropriate strategy which could have improved the hotels situation.
This report, undertaken in October 2011 shortly after the closing of the Sahara in May 2011, pursues the goals to explain possible reasons for the failure of the Sahara Hotel and to show opportunities how the company could have avoided it by looking at the business and functional level of strategies.
Furthermore, it will outline the strengths, weaknesses, opportunities
and threats of the hotel which can be seen as internal and external
reasons for the failure. Tough competitors and management problems were the two leading causes for the closure of the company which will be examined in this report. The long corporate history of the Sahara Hotel will be an important aspect as well to understand the main problems of the resort and therefore the reasons for the hotels closure.
Table of Contents
1.0 Executive Summary
2.0 Terms of reference
3.0 Introduction
4.0 Opportunities
5.0 Strengths
6.0 Threats
7.0 Weaknesses
8.0 Preliminary considerations for improvement
9.0 Choosing a strategy
10.0 Evaluation of the strategy
11.0 Achieving and maintaining competitive advantage
12.0 Summary
Research Objectives and Core Themes
This report aims to analyze the underlying causes for the closure of the Sahara Hotel in Las Vegas by identifying internal and external factors through a SWOT analysis and evaluating strategic alternatives that could have ensured its long-term viability.
- SWOT analysis of the Sahara Hotel's operational decline
- Evaluation of internal management and structural weaknesses
- Assessment of external environmental threats in the Las Vegas market
- Strategic recommendations for competitive positioning
Excerpt from the Book
3.0 Introduction
Opened in 1952 by Milton Prell at the north end of the Las Vegas Strip, the Moroccan oriental theme hotel was one of the first resorts on the Strip and became famous for its late night performers like Frank Sinatra, Marlene Dietrich and Liza Minnelli. In 1961, Del Webb bought the resort and added two towers in order to expand.
In 1982, Webb sold the Sahara Hotel to Paul Lowden for approximately $50 million. Six years later a third tower was added which helped the Sahara Hotel to become a 1,720-room resort with a new race and sports book.
In 1995, ownership changed again when the hotel was sold for $193 million to Bill Bennett. He tried to rescue the resort by building a roller coaster throughout the whole resort, installing the Sahara Speedworld racing simulation and opening the NASCAR café. (Pratt, 2011)
After Bill Bennett’s dead in 2002, the resort was sold out to Sam Nazarian for approximately $330 million. He was the last owner because on 16th May 2011, the Sahara Hotel closed for the reason that it was not ‘longer economically viable’. (Green, 2011)
Summary of Chapters
1.0 Executive Summary: Provides an overview of the report's focus on the failure of the Sahara Hotel using a SWOT analysis.
2.0 Terms of reference: Defines the scope of the investigation, including the time frame and the exclusion of high-level corporate financial data.
3.0 Introduction: Details the historical evolution of the hotel under various owners and sets the context for its final closure.
4.0 Opportunities: Examines external market factors, such as convention proximity and tourism trends, that could have been leveraged.
5.0 Strengths: Highlights the hotel's historical branding and unique theme as potential competitive advantages.
6.0 Threats: Analyzes external challenges including shifting competition, seasonality issues, and negative public perception.
7.0 Weaknesses: Investigates internal failures such as aging facilities, poor customer service, and ineffective management strategies.
8.0 Preliminary considerations for improvement: Discusses the importance of resource management and core competencies in turning around a struggling organization.
9.0 Choosing a strategy: Explores the application of Porter's generic strategies to restore the hotel's market position.
10.0 Evaluation of the strategy: Assesses the feasibility and potential risks of implementing a focused differentiation strategy.
11.0 Achieving and maintaining competitive advantage: Discusses long-term sustainability through continuous product development and market adaptation.
12.0 Summary: Concludes the findings by summarizing why the Sahara failed and how strategic adjustments might have altered the outcome.
Keywords
Sahara Hotel, Las Vegas, SWOT analysis, Strategic Management, Competitive Advantage, Hotel Failure, Tourism Industry, Market Positioning, Differentiation Strategy, Corporate History, Operational Challenges, Hospitality Management, Customer Loyalty.
Frequently Asked Questions
What is the core focus of this report?
The report provides a detailed retrospective analysis of the failure of the Sahara Hotel in Las Vegas, aiming to understand why it was deemed no longer economically viable in 2011.
What are the central thematic areas covered?
The study centers on strategic management, organizational resource assessment, market competition, and the application of marketing theories to the hospitality sector.
What is the primary objective of the research?
The objective is to explain the reasons for the hotel's decline and to propose strategic frameworks that could have improved its situation and maintained its competitive edge.
Which methodology is employed in this study?
The primary methodology utilized is a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) combined with strategic business theories like Porter’s Generic Strategies.
What content is addressed in the main body?
The main body examines the corporate history, internal operational issues, external market pressures, and potential strategic alternatives like focused differentiation.
What keywords characterize the work?
Key terms include Sahara Hotel, SWOT analysis, competitive advantage, hospitality management, and strategic positioning.
How did previous renovations influence the hotel's fate?
The report suggests that renovations were infrequent and sometimes misaligned with customer needs, failing to preserve the hotel's original charm while struggling to modernize effectively.
What role did management issues play in the decline?
The study highlights a non-uniform leadership style and a lack of coordination between management groups as significant internal factors that led to operational failure.
Why was the hotel's location considered a disadvantage?
Being situated at the northern end of the Strip meant the hotel was distant from the city center, potentially creating navigation difficulties and negative perceptions regarding its neighborhood.
Was the failure of the Sahara avoidable according to the author?
The report concludes that while the failure resulted from a complex set of internal and external problems, the implementation of a more robust strategy—such as focused differentiation and targeted advertising—could have served as a starting point for stabilization.
- Arbeit zitieren
- Alexandra Riepe (Autor:in), 2011, An assessment about the failure of the Sahara Hotel in Las Vegas, München, GRIN Verlag, https://www.grin.com/document/191216
