Harrah’s Entertainment, Inc Harvard Case Solution & Analysis


            Harrah’s Entertainment Inc. has been one of the most well-known and highly respected brands in the casino entertainment market. The company was founded way back in the year 1937. The initial business for the company was started in bingo parlor in Reno, Nevada. The company went on to become one of the most highly recognized firms where it acquired properties throughout Nevada and other places.

            Harrah, in the year 1973, became the first public limited company, listed on New York Stock Exchange. The company has been managing more than 38 gambling and resort properties in more than 14 states within the United States. Moreover, it has been operating in five other countries with a total number of employees around 32,000. The brand name has become the synonymous in terms of customer centric, quality and entertainment.

Customer Value Funnel – Level III

Organizational Factors:

            The organizational factor with respect to Harrah Entertainment is rather clear. The company has been concentrating on building relationships with the customer, rather than spending time over branding the company. This has been the major success factor for the firm, which has led to the success in the casino entertainment market. Moreover, the employees are rewarded and compensated based on the level of customer satisfaction.


            The stakeholders for Harrah Entertainment have been the customers who have been the force, which has been helping the company in generating profits and actually staying ahead of the competition. Moreover, the long term relationship between the company and the employees has also been a stakeholder in the overall performance of the company. The suppliers, hotels, have also been serving as stakeholders for the firm.

Business Culture:

            The business culture at Harrah Entertainment is to serve the customers with utmost care and affection. The company has been offering loyalty programs, visa cards to ensure that the relationship with long standing customers does not fade away. As the case states, 26% of the loyal customers are the source of generating 82% of the total sales. The culture at the company is to ensure customer centric approach and constant rewards for choosing Harrah over other rival casino entertainment firms.

Organizational structure

            The organizational structure at Harrah Entertainment has been led by different department heads, which look after their respective domains. Since Harrah has been growing at a rapid pace, therefore, the management has been focusing on investing on individuals who can lead the departments with conviction and vision.

Business strategies

            The business strategy of Harrah Entertainment is to focus on customer relationship management where it has been constantly improving upon the service, which is being offered to the customers or the clients who have been regular at Harrah.

Value providers

            The value providers for Harrah Entertainment have to be the customer loyalty cards, visa card, stay at hotels, vouchers; different packages have all been a way or method to add value for the customers at Harrah Entertainment.

As per the CVF it includes the above mentioned aspects of the business the stakeholders, business culture, organizational structure, strategies, and value providers. Therefore, it is quite evident as per the information provided in the case that Harrah’s culture, strategies and culture have been all about delivering value to the customers.

As per the funnel, it demonstrates a downward flow in most parts where all the components are related to the level above. Moreover, the feedback loops in the level III have been indicating a gain in market intelligence, which is the decrease in gambling by younger generation. This actually demonstrates that Harrah Entertainment has been quite well equipped on Customer Value Funnel, level III.Harrah’s Entertainment, Inc Case Solution

Customer Value Funnel – Level IV

The major advantage of Customer Value Funnel is that it helps in understanding the business dynamics and situation of the company. CVF offers help to ensure that the company can achieve competitive advantage over rivals.

Perceived vs. Delivered Value:

The delivered value to the customer is all about customer relationship management. The company has been a brand, which develops long term relationship with the customers. The introduction of different methods like loyalty cards, visa card have been examples of the success of CRM.

The perceived value has also been the same. However, one market that is yet to be tapped by Harrah is the online gambling market. Harrah does not have strong presence over the online gambling portals, which are expected by the customers. The perceived value as per CVF level IV is generally based on factors such as the pricing, differentiation and appearance. Over here, Harrah has been quite successful in delivering perceived value with its CRM initiatives and methods. Harrah also offers superior customer value as it focuses on satisfaction and long term commitment with the customers.......................

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