E-Business Paddy Power

Paddy source, Web Division, Online Gambling Service. Version 1. 0 7th April 2010 Prepared by Christopher Cadwell (x08795240) eCommerce proceeding evaluation Operation or attend to oerview Paddy Power is the largest provider of fixed-odds sports wager in Ireland. Paddy Powers retail division operates a chain of licensed betting offices fixed throughout Ireland and in the UK. There online division operates one of Irelands largest online businesses which consists of the online sportsbook, mobile sportsbook,casino, games, poker, bingo, and financial spread betting (its latest addition).Paddy Power was founded in 1988 by the fusion of three existing Irish high street bookmakers who have an unconventional approach to betting and gaming believing them to be firmly rooted in the leisure and entertainment space. As such its mission is to make risk-based entertainment much accessible and fun. It offers customers an unparalleled betting experience that is great value, great fun and has the opera hat service. Through this strategy the company has developed a strong reputation as The Punter Friendly Bookmaker and has be perplex renowned for its unique cash Back Specials. Thanks to this customer-centric approach, it is now generally accepted that a bet with Paddy Power has three possible outcomes Win, Lose or Money Back. food food market Target market Paddy Powers fundament market is everyone over the legal age to gamble. They attract customers of all ages ranging from late teens to pensioners as it is discontinue of human nature to take risks and have a gamble. Paddy Power attracts so many people with its wide variety of different areas on its website including a sportsbook, casino, games and bingo so there is something there for everybody.Major clients I foundert think Paddy Power have major clients as they target everyone from the average everyday punter to the high society people and if they did have major clients im sure their identitys remain private. Geographic or upright clustering Paddy Power has 212 shops in Ireland (including 3 shops at race courses) and 86 shops in the UK which are dispersed throughout either country. Recent news show and Press Releases Bookmaker Paddy Power has announced it will create up to 250 new jobs at its headquarters in Tallaght in Dublin over the next three years.Paddy Power, which already employs 640 people in Dublin, is recruiting as part of its strategy of international expansion into the online sports betting market. The company is to recruit 50 people with skills in technology and risk management by the summer, with the remainder generated over three subsequent years. Tiger Woodshas snubbed a $75m (55m) sponsorship offer from bookmakerPaddy Power. The playing legend bade farewell to several of his big-name sponsors but the disgraced world number one still wont be tempted by the offer, which could be worth an astonishing $75m over five years. With a down payment of $5m (3. m) for the use of T igers uniformness annually, the proposal provides performance incentives including $1m (736,000) for each Major he wins in theUSand $2m (1. 5m) for victory at theBritish Open. Were in negotiations with IMG to sponsor Tiger, Paddy Power told US magazine website Golfweek. Its still in the early stage of the negotiations, really, to be honest with you. But if it all comes off, itll be the biggest sponsorship deal weve done by quite some way. However,Mark Steinberg, Woods agent at IMG, indicated that Paddy Powers proposal is not being given serious consideration. Were not involved in any discussions to add to his sponsorship portfolio at this time, he said. Paddy Power illogical 1. 5m last August when it paid out on Tiger as he led after 54 holes of theUS PGA Championshipat Hazeltine only(prenominal) to be eclipsed byKorean YE Yang. Now Paddy Power is potentially taking a much bigger gamble on Woods, who has been out of golf since his November 27 car crash precipitated revelations o f marital infidelity and a stunningly swift fall in public-opinion surveys. His marketability is under pressure afterAccenture, AT&T andGatorade allpulled their support. At this stage, when other sponsors seem to be ditching him, theres an opportunity there to step in, the bookmaker said of the proposal. Hes still somebody we would very much like to align ourselves to. Competitive positioning International and national competitors Paddy Powers international and national competitors would consist of Ladbrokes, Victor Chandler, William Hill, Stan James, Coral, Boylesports, Bet365, SkyBet and Betfair. All these fellow bookmakers have online gambling sites so would be Paddy Powers biggest rivals.Regional competitors Paddy Powers regional competitors would be Celtic Bookmakers, Terry Rodgers Bookmakers and Hacketts Bookmakers these competitors have rival shops around the country but dont have the capacity to compete online. Local competitors Paddy Powers local competitors would be one off independent betting shops fate up in local towns the only example I can give is Vernon Racing which is my local bookmakers in Clontarf, as it is not a enfranchisement it is a independently run bookmakers and they only have one establishment. Business valueMarket lease Paddy Powers market demand is strong even through the recession I would say it is the market leader as their money back specials apply added insurance to bets made, so thence more people would place their bets with them instead of a competitor. They would also be the most well known of the brands which lures more people to their shops. judge revenue stream Paddy Power are constantly going head to head with their competitors by saying they will match a go price if you can find it and with their money back specials as well.They are also opening more new stores each year to increase their market share. Market ontogenesis potential Online activities are by some distance the largest and fastest growing part of Pad dy Power. Their online run profit increased by 2. 9m to 45. 7m last year, despite a significantly worse run of sporting results and a net negative impact from foreign currency fluctuations of approximately 2. 1m. Their operating profit as a percentage of gross win at 42% remained amongst the highest in the industry, benefiting from the strength of their brand, synergies with Retail, scale and operational expertise.This profitability enables Paddy Power to continue to invest in product, value and brand to drive future success in what is a highly competitive industry. Risk evaluation Evaluation Tools used and why. I would use the SWOT analysis tool in my evaluation of Paddy Power. I think it is the right tool to use because it would foster them evaluate what their strengths, weaknesses, possible opportunities and possible threats are in their running of their organisation. Evaluation Tools not used and whyI would not use a infestation analysis tool in my evaluation as dont feel it benefit Paddy Power as much as a SWOT analysis would. It wouldnt allow them to recognise the area of possible expansion opportunities. Evaluation SWOT analysis Strengths * Entrepreneurial and focused management * digest on small stakes fixed odds betting and entertainment betting designed to add value to a sporting or other event * Strong financial position (no gearing and cash generative) * brand is established and widely recognized Weaknesses * Threat of new entrants Limited experience of UK betting market * Exposed to rental increases on leased properties * Margins intra-year vulnerable to performance of favourites * Dominant market position in Ireland (33% off-course betting in Ireland) Opportunities * Scope for just shop openings in Ireland and to roll-out business model in the UK * Extend leadership of on-line and telephone betting business in Ireland into the UK * Enhance organic growth profile with opportunistic bolt on acquisitions in a fragmented UK industry * Expand pro duct range, particularly in the online businessThreats * Risk of more aggressive price based competition in Ireland and the UK * Potential decline in consumer spending due to a severe economic downturn in Ireland and the UK * Susceptible to adverse changes in tax and regulation * Online business vulnerable to threat of software virus attacks * New technology increases disintermediation and pricing transparency, resulting in freeze off margins Evaluation summary Expected returnPaddy Power expects their customers to be happy with the way their website is laid out and the deals and services it provides, as they feel their service is the best in their market. Strategic value Paddy Power has a strategic advantage on their competitors websites as they offer cave in deals then most of their competitors. Ability to deliver success Paddy Power is the largest provider of fixed-odds sports betting in Ireland and they hope this will continue for years to come and for their business to continu e to expand.