Scientific Games Swot Analysis

930 Words 4 Pages
My Company is Scientific Games (NYSE:SGMS) and they are a leading innovator in the global lottery and regulated gaming industry. Operating in the Consumer Discretionary sector and the Casinos and Gaming sub-industry, they gave the world the first secure instant lottery game in 1974.1 Scientific Games have continued to advance games, technology, programs, marketing research and security driving the success of more than 300 customers on 6 continents for the last 40 years. Alongside their revolutionary advances in lottery games, they have also patented gaming technology and research-driven programs with the highest level of security, integrity, and ethical standards. Scientific Games prides itself on being committed to worldwide responsible gaming …show more content…
Scientific Games is no different when it comes to placing major importance on this concept. Currently, Scientific Games has a board that elects all 11 members on an annual basis and 8 of those 11 are independent director nominees. Their board committees are independent other than the Executive and Finance as well as the Compliance Committee. Chairman and Chief Executive Officer roles are separated and there are regular board and committee self-evaluations. The company provides cash and equity compensation “clawback” policy, anti-hedging policy, stockholder right to call special meetings, and “anti-takeover” provisions to protect the interests of their stake holders. Director independence guidelines have been adopted to determine that individual directors are independent under the standards of the NASDAQ market. This annual determination assures the quality of the board’s oversight and reduces the possibility of damaging conflicts in interest. Scientific Games has also adopted corporate governance guildlines that outline the structure, roles, and functioning of the board and addresses various governance matters including director independence, the board selection process, length of board service, board meetings and executive sessions of independent directors, …show more content…
Another strength is the fact that Scientific Games has an international presence with a hold in 50 different countries. A weakness for Scientific Games is the uncertainty of successfully integrating a merger, as they have aggressively expanded through mergers and acquisitions in the last 2 years. Scientific Games relies on a small number of customers for a large portion of its revenues in the lottery business. Lastly Scientific Games has a weakness based on the unpredictability of the gaming industry and casino needs are driven by a multitude of factors outside of their control. Opportunities include loose regulation in the lottery and gaming businesses provide opportunities to penetrate new geographies and gain a dominant market position in those areas. The gaming segment can be developed further with Scientific Games strengthening their presence on Facebook, Android, and Apple Platforms. Finally, Scientific Games can use R&D to make their products more sophisticated in order to make them more interactive and appealing. While threats can be regulatory issues, meaning stiffness in regulation can cause a decline in business but lightened regulation could potentially open the door for more competition. A high price gaming market exposes Scientific Games to

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