UM E-Theses Collection (澳門大學電子學位論文庫)

check Full Text

Diversification strategy of foreign gaming companies in Macau

English Abstract

The gaming industry accounts for an important portion of the economy in Macau. After the opening of gaming industry in Macau, the foreign gaming companies entered local market by replicating the diversification strategy from their headquarters to subsidiaries in Macau. However, how to increase the transferability of stickiness asset and increase the adaptation of cross-border practice transfers became a paradox faced by gaming companies. This study adopts a case study research approach to explore the development of diversification strategy of foreign gaming companies in Macau. This research focuses on four research questions: (1) is the diversification strategy of Sands China value-enhancing? (2) What are the motivations of diversification? (3) Which factors facilitate the replication of diversification practice from the headquarters to Sands China? And which factors impede the replication? (4) Which internal and external factors improve the adaptation of diversification practice which is replicated from the headquarters in US to address the local market environment, and which factors impede the adaptation? I find that diversification strategy is beneficial to Sands China. I also find that the motivation of diversification for Sands China is different from firms in other industries. It does not diversify to gain profit from different business. Instead, it uses the profit of gaming to subsidize other business. Attracting more customers to boost the profit of gaming is the main purpose of its diversification strategy. To study how can foreign gaming firms successfully diversify their business in Macau, I focus on two perspectives of the diversification process in international iv companies, i.e. the stickiness in diversification practice transfer inside an international company, and the adaptation of diversification practice in the subsidiary. I find that information flow system, capital and coordination system of Sands China facilitate the replication; while lack of experience, non-local staff and cultural difference impede the replication. In terms of adaptation of diversification practice to address local market condition, I find that both internal factors (i.e. localized human resource management, support from parent company, and distribution channels) and external factors (local customers’ preference and government regulations) significantly influence the adaptation. I believe these influencing factors provide important guidance to the foreign gaming companies when they are replicating their diversification strategies in Macau. My thesis contributes to the diversification literature by focusing on the diversification process, rather than merely study the performance implication of diversification. It also has important managerial implications for managers in gaming industry.

Issue date



Du, Jian Hang


Faculty of Business Administration


Department of Management and Marketing




Diversification in industry

Gambling industry -- Macau


Yuan, Lin

Files In This Item

Full-text (Internet)

1/F Zone C
Library URL