Paddy Power Report Analysis
Sarah FayB00061143
Department of Business School of Business & Humanities,Institute of Technology,
Blanchardstown,Dublin 15
[Word Limit for Assignment: 10500 Actual Word Count: 10317]
The Course Title: General Business The Module Title: Strategic Management of Information Systems
Submission Date: 27/04/2016
ContentsExecutive Summary...............................................................................................................................1
History of the Company.........................................................................................................................2
The strategic Position of the Company..................................................................................................6
The environment...............................................................................................................................6
The macro Environment................................................................................................................6
Industries and Sectors...................................................................................................................8
Competitors and Markets............................................................................................................11
Opportunities and threats...........................................................................................................11
Strategic Capability of Paddy Power................................................................................................12
The Critical Success Factors.........................................................................................................12
Resources and Competences...........................................................................................................14
Resources....................................................................................................................................14
Competences...............................................................................................................................15
Distinctive Capabilities.................................................................................................................16
Bench-Marking with Competitors................................................................................................16
Financial Reports.........................................................................................................................17
Strengths and Weaknesses of Paddy Power....................................................................................17
Strengths.....................................................................................................................................17
Weaknesses.................................................................................................................................17
Strategic Purpose.............................................................................................................................17
Values, Mission, Vison and strategic Objectives..........................................................................17
Corporate Governance and Governance Structure.....................................................................19
Corporate Governance................................................................................................................19
Business Ethics and Cultural Context...........................................................................................21
Strategic Choices.................................................................................................................................22
Corporate strategy and Diversification............................................................................................22
Product/ Market Diversity...........................................................................................................22
Direction and Methods of Development.....................................................................................23
Methods of Strategy Development - Mergers, acquisitions and alliances...................................25
Success Criteria............................................................................................................................28
International Strategy......................................................................................................................30
Business Level Strategy....................................................................................................................31
Forces Influencing Business Strategy...........................................................................................31
Bases of competitive Advantage..................................................................................................32
Sustaining Competitive Advantage..............................................................................................32
Strategy in Action................................................................................................................................34
Structure..........................................................................................................................................34
Enabling Success..........................................................................................................................35
Conclusion...........................................................................................................................................37
References...........................................................................................................................................38
Declaration of Plagiarism.....................................................................................................................41
Executive SummaryPaddy Power is a globally successful, Gambling organisation whom have excelled in their business
strategies since the company was first established in 1988. Recently, Paddy Power was involved in a
merger between their company and Betfair. Betfair is one of Paddy Power’s main online competitors
so this merger was, not only a great success for Paddy Power, but it also limited Paddy Powers
Competitors. The Chief Executive of the Paddy Power Betfair Company commented on the merger in
the recently publicised annual report. He stated
“The combination of the two operators with significant growth momentum, aligned strategies and a
strong cultural fit is hugely exciting and our belief in the strategic rationale for the deal has only been
strengthened following our early days as an enlarged group”
(Breon Corcoran, 2016)
Throughout this report I have analysed the company of Paddy Power Betfair Plc. I have completed
various different analyses on different parts of the company and laid out my results in this report.
Included in this report is an analysis of the following:
The strategic position of the company- The strategic position of the company is the overall objectives
which the company aims to achieve and how they plan to achieve these objectives. Paddy Powers
executive directors have carefully combined thoughts and knowledge to establish a new strategic
plan for the new Paddy Power Betfair Plc.
The strategic Choices of the company- A successful strategic choice process allows an organisation to
make effective and efficient decisions for the company. It is important for the employees involved in
the strategic choices of a company to define the source of certain issues and make decisions to
amend these issues.
Strategy in Action- In this part of the report, I have listed and explained the different sections of
operation at Paddy Power. In each of these sections there are sub groups to ensure top quality
service for customers from Paddy Power.
Paddy Power is a company who have high regard for their customers and listen carefully to their
customer feedback in order to create a better service. As part of this strategy, they engage fully with
their customers and inform their customers of new innovations in order to get their thoughts on it.
Paddy Power Report Analysis
History of the CompanyThree Irish bookmakers, by the names of Stewart Kenny, John Corcoran and David Power, originally
founded the Paddy power company in the year of 1988. This establishment arose after the three
men decided to merge their 40 shops in order to create a sense of entertainment in the world of
betting. The name was decided, based on the strength
of the “Power” brand name, among the merged
shops. They decided to use “Paddy” and the colour
green as their signature colour in order to symbolise
the Irish culture of the chain. This was a major factor
at the time because the fragmented Irish betting
industry was facing a huge challenge of competition
from Britain, as a result of the Irish Tax code. Since
being exposed to the public, Paddy Power has had
continued Success from the very start and continues to gain more and more customers every day by
having an aggressive expansion approach.
In the year of 2000, Paddy Power successfully tackled the World Wide Web, providing its customers
with an online gambling website “Paddypower.com” The launch of their online website saw Paddy
Power hold the leading position for online gambling, Which they have kept hold of to this day, with
the help of the recent merge with Betfair.
In a continuous effort to make betting an entertainment for their customers, Paddy Power opened
its first shop in the UK in the year of 2002. As a result of the entertainment aspect of Paddy Power
becoming an increasingly important factor for customers, Paddy Power opened a total of 250 shops
in the UK by the year of 2014. This was a larger figure then the number of shops Paddy Power had
opened in Ireland.
In 2004, Paddy Power again expanded its services in order to keep its loyal customers satisfied. This
was the year they created e-gaming products, launching services such as Paddypowergames.com
and Paddypowercasino.com. In 2005, they provided their customers with Paddypowerpoker.com. In
an attempt to gain attention worldwide for this new service, Paddy Power organised the world’s
largest ever game of strip Poker. This proved to be a success as it led to the production of
paddypowerbingo.com in 2006. By the end of 2005, Paddy Power operated in 195 outlets (150
based in Ireland and 45 based in The UK). The total number of Employees at Paddy Power at this
stage of their life cycle was 1,374.
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Paddy Power Report Analysis
In 2008 after acquiring the Northern Irish bookmaker “McGranaghan Racing” , Paddy Powers ship
count was brought up to a total of 191 outlets in Ireland.
The production of the e-gaming products then led to the expansion of Paddy Power in 2009.
2009 was the year that Paddy Power decided to establish markets outside of Ireland and the UK. The
International expansion of Paddy Power began with Australia. Paddy Power purchased a 51% stake
in of the online bookmakers in Australia “Sportsbet.com.au”. In 2010, Paddy Power then purchased
the remaining shares. This has had a positive and effective impact on both Paddy Power Company
and Sportsbet as a Sportsbet have been doing electrifying ever since. 2009 was also the year that
saw Paddy Power join overseas partnerships with countries such as France and Canada. The Business
to Business partnership with France involved a company called PMU. PMU is Europe’s largest betting
organisation so this was a huge achievement and advantage for Paddy Power.
A huge development for the Paddy Power company in 2010 was being the first online bookmaker to
have an app in the Apple app store. Due to technology updating quite regularly throughout the
years, Paddy Power have to ensure they keep up to date with what’s going on in the world of
technology in order to keep hold of its customers. The app was a new and exciting way for Paddy
Power to communicate and engage with its customers. Today, The App is responsible for a large
percentage of the bets placed with the company. In May 2013, Paddy Power celebrated its millionth
download.
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Paddy Power Report Analysis
By February 2010, Paddy Power chain had a total of 356 shops with 209 based in Ireland, 8 in
Northern Ireland and 139 In the UK. Almost two thirds of Paddy Powers profits, however, were being
made outside Ireland.
In 2011, Paddy Power bought the firm “Cayentano”, which is a Bulgarian-based games and
development software firm. This business strategy saw a huge increase in employees who could help
enable Paddy Power to lead the market industry by creating new product developments and
technologies.
2012 was a major year for Paddy Power as many different business strategies and Promotions took
place this year. It started out when the majority of Paddy Powers head offices, which were originally
situated in Tallaght Dublin, were moved to a brand new power tower building in Clonskeagh. After
this, the company expanded further internationally into the online Italian market. A new App was
also developed for Paddy Power this year which called “first-ever-real-money” casino App. Paddy
Power created this App for all Apple touch screen devices. Lastly they launched Roller in 2012 and
provided customers with yet another social betting game to keep them entertained called “Bet
Dash”.
A repeated successful and busy year was had for Paddy Power in 2013 when they broke the world
record for having the largest painted sign in history. The following is a picture of the sign:
This was the sign that welcomed British and Irish lion’s players to Melbourne airport. Following on
from this, Paddy Power opened a further 75 new shops all across Ireland, Northern Ireland and
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Paddy Power Report Analysis
Britain. Another international partnership was also formed in 2013 between Paddy Power and
Slovakian sportsbook Nike. Paddy Power produced a Paddy Power messenger app in the same year
which provided another mode of betting for customers. Another major development for Paddy
Power in 2013 was running a campaign with Stonewall which supported Gay Footballers. This
campaign was called the “Right behind Gay Footballers” Campaign and it involved sportsmen and
sports women all over the world wearing rainbow colour laces in order to support Gay Footballers.
The most recent new strategy which Paddy Power adapted, occurred in 2016. They adopted a new
strategy, in order to stay dominating the industry. They merged with the company “Betfair”. It is
hoped that this partnership will create the world’s largest public online betting and gaming company
by revenue. The companies plan on doing this by using enlarged scales, Using their experience and
capabilities. They also have distinctive and complementary brands in their favour so they make quite
a powerful partnership.
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Paddy Power Report Analysis
The strategic Position of the CompanyThe environment
The macro EnvironmentWe analyse the Macro environment of Paddy Power using three different tools. These tools include
A PEST Analysis
Key Drivers
Scenarios
The purpose of analysing the Macro Environment of Paddy Power is to help discover possible future
opportunities or threats for the newly established Paddy Power Betfair Plc. These Opportunities and
Threats are external to the company and are outside the control of the industry. Considering Paddy
Power Operate in five different Countries (Australia, England, Ireland, Bulgaria and Italy), A wide
range of information had to be taken into account when completing this analysis.
Firstly, I constructed an in depth PEST analysis to establish the Political, Economic, Social and
Technological factors that affect Paddy Power.
Political Factors
The main political factors which are increasingly impacting Paddy Power are the Government
Regulations on Betting. Most Regulations for gambling are quite similar across the different
countries in which Paddy Powers operates in.
In Ireland on the 15th March 2015, the president, Michael D Higgins, signed Irelands Betting
Amendment act 2015. As a result of his actions, A licensing regime was introduced for Bookmakers
(Including Paddy Power) and betting intermediaries.
In Australia, The Gambling Regulations are done at two completely separate levels. The two levels
are as follows
o Central Government
o State and Territory level
The role of the Central Government in regards to Gambling in Australia is to regulate the Hobby.
They are responsible for the passing and amending of the relevant legislations.
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Paddy Power Report Analysis
Economic Factors
There is a wide range of negative and positive effects which gambling can have on any country’s
economy. Positive effects which Gambling, and therefor Paddy Power, can have on an economy is
that it creates revenue. Currently, in all of the countries where Paddy Power has located, there has
been an increase in economic Development, An increase in employment percentage and there has
also been quite a large increase in tax revenue. Although Paddy Power did lose out on Profits when
the Recession arose in certain parts of the world, E.G Ireland, they have made a huge increased
improvement in profits since 2015. Governments have no choice but to accept and welcome the
Gambling industry as it is an economic need and they need the extra revenue.
Paddy Power is based in countries where gambling is a legal pastime. The reason Ireland, England,
Australia, Bulgaria and Italy have chosen to legalize Gambling is to create a large profit margin for
their countries. Other than the profit which can be made from Gambling, The number of outlets
owned by Paddy Power across the world creates a large employment base.
However, Due to the fact that Gambling can become an addiction, the industry can also cost
Governments a large Sum of money in regards to crime, Social pathologies and social interruption.
These factors should all be taken into account, and never undervalued, when looking at the
economic damages caused by Paddy Power and the gambling industry.
For Paddy Power, The legality of Gambling and the increasing ways of accessing Paddy Power
accounts EG Through the webpage or Mobile Apps, has also created a threat for the economy in
terms of health and social costs.
In England, The Gambling industry pays betting and gaming duties, which have previously reached a
total of £1.4 billion annually. The gambling industry in England are extremely proud to be able to
contribute that sum of money to the British Economy.
Social
The main social effects of gambling which may affect Paddy Powers external environment is the
outlook that the public have on Gambling. Society’s views on addiction is a major factor for gambling
as there is a small number of people for which gambling may become a huge problem for them .
However, the gambling Industry have 100% commitment to helping, protecting and decreasing
problem gamblers. In the UK, there is a project whereby the Gambling Industry contribute a large
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Paddy Power Report Analysis
sum of money to gambling related research and education. For example over 2012/2013, the
gambling industry in the UK contributed over £5 million through the responsible gambling trust.
Technological
In recent years there has been a significant increase in the number of people using online betting as
a hobby. Since 2008, online gambling has grown by an impressive 1386%. There competition in the
industry is quite fragmented for example there is Paddy Power, Betfair, Bet365 and Ladbrokes. The
public have great use of applications for example phone applications to download gambling apps or
betting games. Betfair have found that over one year, they received an increase of 70% of users. This
accounts for 4% of the Revenue per year. The negative side of technology being used so intensely is
that of hackers were to take advantage of Paddy Powers website, they could potentially gain a large
range of personal information about the customers at Paddy Power. Hacking can be done so easily
to companies especially if entry barrier to systems are low or easily accessible. People are also
beginning to change their customer needs and find gambling from home or work easier and less
hassle then trying to get to an outlet. With the use of technology, Customers can take advantage of
online gaming as well as gambling from home.
Industries and SectorsIn order to analyse the industries and sectors, I have used Porters Five forces framework. Porter’s
five forces is an important and simple framework for managers to use to help them understand
where the power is in a significant business situation and the competitive strength the company has
in their current position. It also helps a manager understand the strength of the position the
company is moving into.
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Paddy Power Report Analysis
The main competitors for Paddy Power would be
Ladbrokes
William Hill
Bet365
Boyle sports
Before the merger took place, Betfair would have been Paddy Powers main online competitors. By
merging with Betfair, Paddy Power has decreased its competition by a significant proportion. The
gambling industry between Ireland and the UK can be described as Oligopoly. This means that there
are few firms in the industry that dominate. In the gambling industry the three most popular firms
would be Paddy Power, Betfair, William Hill and Bet365.
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Paddy Power Report Analysis
The Threat of substitutes
Due to the fact that online betting is becoming increasingly popular, there is a strong threat
substitutes. This is due to the fact that it is extremely difficult to communicate and interact with
customers when they are using online websites, therefore brand loyalty could be hard to achieve.
The lotto can be a major threat for gambling outlets as people prefer to purchase lottery tickets
instead of betting online or going through the hassle of going into an outlet. There is a major
increase of people buying lottery tickets when there is a draw which has a huge pay out. These
draws tend to get airtime on the news and therefore attract customers.
Casinos are another alternative that people can use instead of betting games and gambling outlets.
Holidays are often planned based on going to casinos EG Las Vegas where large sums of money can
be made. Often these types of holidays involve many weeks of saving therefore people sacrifice
going to their local outlet, to save for a holiday.
The threat of new entrants
Threat of new entrants is just as strong as threat of substitutes due to the low entry barriers of the
gambling industry. For example, an entrepreneur would only need a small capital to gain a position
in the market. However, new entrants would make little or no difference to Paddy Power because
they already have such a high and successful market share especially after merging with Betfair.
Bargaining power of suppliers
In this instance, the bargaining power of suppliers would be the power that the industries such as
sports industry and horse racing industry have on the gambling industry. The answer to this would
be they have extremely weak power over the gambling industry. The gambling industry distributes a
large quantity of resources back into these specific industries. The poker industry has moderate
power over the betting industry as in poker there is a slight ability to be able to promote your
favourable company in the gambling industry.
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Paddy Power Report Analysis
Bargaining power of buyers.
The customers of the firms in the gambling industry are the buyers. They have moderate control
over the firms as they can decide what firms they are going to use and therefore give their money to.
The factors which the customers take into consideration are
1) Best customer service
2) Minimum fees/costs
3) Confidence in the website and privacy of their personal information
4) Number of betting options e.g. online, in store, On your mobile
Competitors and MarketsIn this section, I focus on the strategic Groups, The strategic Customers and the market segments.
The firms within the strategic group of the gambling industry are companies which I have mentioned
before- Ladbrokes and Bet365. Before the merger, Betfair would have been Paddy Powers biggest
competition as Paddy Power and Betfair have the most in common. Firms in this strategic group
have similar strategies, similar characteristics and compete on a similar bases.
Opportunities and threats Opportunities for Paddy Power has increased dramatically after the merge with Betfair. This merger
means less competition for the company and a larger market segment.
There is a continuous growing demand for online betting and gambling which Paddy Power
are market leaders of. If they take advantage of this growing demand, a huge profit margin
could possibly be made/maintained at Paddy Power.
The income for Paddy Power is constantly flowing because it is such a popular company with
a successful brand name and marketing campaign.
The merger means that Paddy Power are now enabled to access new customer networks in
which they will be able to communicate and engage with customers to find out their specific
customer needs and try and fulfil them needs.
The merger also means that Paddy Power can use Betfair betting license to globally expand
the company into foreign markets.
There are a small number of threats which effect Paddy Power such as issues involving breaking
down of technology, rising costs of raw materials and negative perception from the public.
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Paddy Power Report Analysis
Breaking down of Technology-Due to the growing demand for online gambling, Paddy Power have to
be prepared for the event that technology breaks down. Another threat, which effected Paddy
Power in previous years, is the event of a hacking scandal. In 2014, Paddy Power revealed to the
public that they were a victim of an enormous cyber-attack effecting 649,055 of their customers in
2010. The company told the public that, although no financial information was stolen, Names, Emails
and passwords of customers were all compromised. (Ltd, 2015)
Strategic Capability of Paddy Power
The Critical Success FactorsCritical success factors are those that are either of great value to the customer or add great value in
terms of cost.
Marketing online is the most effective and efficient way of promoting your company. As it is also
extremely cost friendly, many companies took advantage of online presence. With the increase of
social media and mobile phone usage over the past number of years, this method of doing business
proved to be a huge success for many companies.
Paddy Power is one of the most successful
companies for embracing the world of online
marketing and using social networks and Phone
Apps to engage with customers. Their approach to
digital technology and digital marketing is a
reflection on how profitable and successful the
company are today.
Paddy Power began their online adventure in the
year of 2000. Annually, approximately three quarters of Paddy Powers profit comes from their
online presence.
Customers of Paddy Power enjoy and appreciate the chance to be able to bet and play e-games
online. They are extremely well positioned in their online market, with leading penetration in
mobile and social media.
Creating this critical success factor for customers of Paddy Power was difficult to establish as it took
a lot of time and a lot of work from the employees at Paddy Power to build up the audience which the
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Paddy Power Report Analysis
company currently have. They changed their whole content strategy and from then, went from being
an ordinary social network page to a successful, popular and most talked about pages on Facebook for
people between the age-bracket of 18-30 years.
The new strategy which Paddy Power now promoted on their Facebook page was fun and excitement.
They joked about the sporting news on that specific day as well as incorporating their own marketing
campaigns into their page. Before this, Engagement with public was poor and the Facebook page
looked empty. Status updates were left as the most recent update for weeks on end and they were
heavily focused on purely just promoting Paddy Power. The company offered very little for customers
to be excited about.
Methods like asking people to like and share posts on their Facebook page was a huge success for the
company establish when the post was accompanied by imagery. The engagement continued to
increase on a weekly basis. They company’s audience continued to extend which showed in their
profits.
This digital presence was popular for an audience of 18-30 year olds. This age bracket was of great
importance to Paddy Power as this was the demographic that Paddy Power believed earned the most
disposable income. They are also the people that are the most digital savvy with the potential to grow
brand loyalty as they get older.
If Paddy Power aim to keep customers engaged with this critical success factor, it is vital that the
company keep up to date with answering comments and holding competitions in order to satisfy
customers and to show them that the company are paying attention.
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Paddy Power Report Analysis
As a result of their witty Facebook comments and imagery uploads, Paddy Powers online venture
changed rapidly. Currently, the number of people who have liked the Paddy Power Facebook Page is
1,507,268. This is an amazingly impressive figure for any company. The large number means that
there is a high chance Paddy Power is appearing on a large number of newsfeeds.
Building Upon Its Success
Although Facebook is the most successful social media network for Paddy Power, Paddy Power also
has a strong online presence on the Social media Twitter site with over 576k followers on their main
Twitter page (which doesn’t include the side pages for poker , e-games etc.)
The Critical Success factors for Paddy Power are based on their online presence.
Resources and Competences
ResourcesResources can be tangible and intangible. Tangible resources are physical assets such as the land,
buildings, Plant, Labor and finance of Paddy Power. Intangible resources are non-physical assets such
as reputation and knowledge of Paddy Power.
Physical Resources for Paddy Power
The fixed assets (which include the property, plant and equipment) which are owned by the Paddy
Power and Betfair came to the value of €38,822,000 in the year ending in December 2015. The
machinery which Paddy Power use is up to date as they need to be constantly updating their presence
online. The machinery which they need to use has to be effective and efficient. As a result from the
recent merger, a head office for the combined companies will be created in both Ireland and England.
Betfair staff who are currently working at the Betfair office in Ringsend are being relocated to the
Paddy Power offices in Clonskeagh.
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Paddy Power Report Analysis
Human Resources for Paddy Power
It has recently been announced that Paddy Power are planning to cut down their workforce between
Ireland and England by letting go 650 of their employees. This decreasing of the work force has
arisen from the merge of Betfair and Paddy Power. The joint company believes the cut will help the
combined group make a saving of £52 million (€62 million). There is expected to be 350 job losses in
the UK and 300 in Ireland. Due to office closures and relocations, some people’s position in the
Paddy Power company may change as a result of the merge. The transfer of roles for the Paddy Power
Employees will be an advantage to them and to the company. Human resources is one of the main
areas which the merger effects because of the lapse of people necessary to complete HR tasks.
(Wilson, 2016)
Intangible resources
This section involves the brand image and reputation of Paddy Power. I focused on how the
organisation is perceived by customers, Community and suppliers.
For some, Paddy Power can be described as a proxy for Ireland. People describe the
company as fun and entertaining. For customers of Paddy Power, They enjoy the adrenaline
of winning/betting on sports events or other betting chances for example, who will win the
next government election. The public in Ireland have extremely high disregard for the
company of Paddy Power, as do people in the UK.
The successful brand image and reputation of Paddy power has developed from a carefully
thought out business strategy, a perfectly cultivated brand tone of voice and high reputation
management engagement. (Tyrrell, 2014)
CompetencesCompetences are a linked set of skills, activities and resources that deliver high quality
service to customers and differentiate the business from its competitors. The main
competence for the company of Paddy Power is career motivation. Everyone who works at
Paddy Power, Wants to be there. Paddy Power is an extremely difficult company to try and
find a job in as there is such a high demand of people who want to work there. For this
reason, Employees at Paddy Power work to the best of their ability in order to ensure
stability in the company.
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Paddy Power Report Analysis
Another core competence at Paddy Power is the marketing success which the company
achieves. Paddy Power is known for producing cheeky and controversial advertising
campaigns in order to get into the public eye and gain attention from potential/current
customers. Some of the most controversial advertising campaigns that Paddy Power has
released are the following.
Distinctive CapabilitiesPaddy Power use the strategic and dynamic capabilities of the organisation in order to contribute to
the long term survival of the company and to help with their competitive advantage. The dynamic
capabilities of Paddy Power are also changing constantly. For example, Paddy Power produce new
games on a monthly basis in order to keep their products up to date and to engage their customers
with newer exciting offerings. Also, Because Paddy Power Produce new Apps for Androids and
IPhones which match to their E-Games, customers feel more connected with the company. The
specific strategic capabilities of Paddy Power are the abilities of the employees to be able to connect
with the customer on a personal level. This involves helping the customer and providing knowledge
so that they use Paddy Powers service again or download The Paddy Power App.
Bench-Marking with CompetitorsAs bench marking is the ongoing structured process of identifying and understanding practices of
other industry leaders to help a company improve their performance level, it doesn’t really apply to
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Paddy Power Report Analysis
Paddy Power. Paddy Power is the head of the Gambling industry at the moment, especially after
merging with Betfair. However, Merging with Betfair helped Paddy Power to improve their online
websites and portals as Betfair specialised in online gambling. Other companies use Paddy Power as
their benchmark because it is such a successful company.
Financial ReportsExcluding customer balance of approximately sixty three million pounds, The Paddy Power Company
have a Net Debt of approximately one hundred and forty six million pounds after the merger. This
figure includes fees and stamp duty in relation to the merger, dividends and payments of costs.
Strengths and Weaknesses of Paddy Power
Strengthsa. Paddy Power has extremely experienced business units.
b. High growth rate.
c. After the Merger, Paddy Power Betfair PLC have a larger marketing network, a wider
customer segment and a larger market share.
d. They have a strong online presence
e. Live betting options
f. Good strong Odds Quality
WeaknessesAs they are such a successful company, there is hardly any weaknesses which can be defined for
Paddy Power Betfair Plc at the present time. Some may say that their cheeky advertisement
methods can be a weakness for the company as they can sometimes receive a large scale of
backlash, However as mentioned later in the report, Paddy Power view any publicity as good
publicity so they do not consider this a weakness for their company.
Strategic Purpose
Values, Mission, Vison and strategic ObjectivesStrategic Objective
As Paddy Power has only recently merged with Betfair on the 2nd of February 2016, they companies
are yet to produce a combined strategy which best describes this suits these merging companies.
However, in previous years, Paddy Power and Betfair have had similar business strategies.
Both companies:
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Paddy Power Report Analysis
Focus on a regulated Market- Although the group are continuing to search for increased business on
both a business to customer and business to business level, They have successfully held onto their
market leader positions in The UK, Ireland , Australia and The USA. 94% of the group’s total revenue
has be gained in their regulated market.
Investment in Product- Innovation and Intuitive design with new products are the key features
which Paddy Power and Betfair use to acquire customers. Paddy Power and Betfair believe they are
so innovative with their products that it differentiates them from the rest of the businesses in the
industry. Due to the fact that both companies are extremely successful on a global scale, they have the
substantial technology and product development resources that they need to create new products
quickly and efficiently. (Strategy, 2016)
Mission
Paddy Powers mission after merging with Betfair was to become joined market leaders of the
industry in Ireland and the UK. The combination of the two companies connects the four leading
sports betting brands in the world whom are Paddy Power, Betfair, Sports bet and TVG. By merging
with Betfair, Paddy Power have eliminated one of their main competitors. This was an extremely
well thought out strategic move.
Vision
The vision for the future of Paddy Power is to take advantage of the growing gambling industry and
to expand the business into a wider global market. Paddy Power will use their strong advertising
campaigns to generate a wider consumer base. Expanding to a larger variety of countries can be a
risk, but with the success of Paddy Powers online website, and now with Betfair, betting services and
phone apps, it could be a cost effective risk and an advantage for the company.
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Paddy Power Report Analysis
Purpose
Paddy Power, The fourth Generation stated at a networking meeting in 2015
“Our brand purpose is to create
the most engaging, entertaining
betting experience helping
punters live on the wild side of
life while our brand personality is
edgy, original and witty,”
(Masterson and Profile, 2016)
Corporate Governance and Governance StructureCorporate GovernanceCorporate Governance describes the structures and systems of control that managers are held
accountable to those who have a stake in the organisation. The people, elected by the board, to
manage the day to day business of Paddy Power is the Chief Executive Managers of the company.
This involves Breon Corcoran, Alex Gersh and Andy McCue for Paddy Power. The board hold a
variety of standard board meetings each year. On average, there are approximately 8 standard
board meetings a year. However, in 2015 with the merge of Paddy Power and Betfair, there was
eighteen full meetings of the board. The board of directors at Paddy Power has established four
different committees. The functions of each other the individual committees vary depending on their
responsibilities.
The committees established were as follows:
-The Audit Committee -The Nomination Committee
-The Remuneration Committee -The Newly constituted risk
Committee
The audit committee are responsible for the financial integrity of the Paddy Power company. They
ensure the internal financial reports and financial risk management systems are working efficiently.
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Paddy Power Report Analysis
The remuneration committee are responsible for making recommendations to the board on the
remuneration of the company. The executive directors and senior executives take this information
and update their remuneration policy.
It’s the responsibility of the nomination committee to recommend people to the board of whom
they think should be elected as new directors/ Executives. They also participate in the succession
plans for directors and senior executives. Other functions of the nomination committee includes
reviewing the current composition of the company and purposing any changes they see necessary.
The risk committee was established as a result of the recent merger. There is a number of functions
which the risk committee will be responsible for. These functions include
1. Review the reputational impact of the group’s activities
2. Review and update the group’s bookmaking risk policies
3. They will then approve limits in relation to the risk policies
The board of directors also have the overall responsibilities of the system of internal control of the
company. They have delegated the responsibilities of the implementation of this system. They have
also set out a code of compliance which should be adhered to when maintaining and reviewing this
system.
Governance Structure
The structure of the Board is reviewed on a regular basis at Paddy Power. It consists of a number of
different directors with a range of background experiences. For example, some of the past
experiences of the directors include financing, leadership, management control and mainly directors
from the betting background.
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Paddy Power Report Analysis
The chairman of the board Gary McGann was appointed on the 1 July 2015 after the resignation of
the former Chairman, Nigel Northridge. The Chief Executive officer and the Chairperson of the board
are two completely separate people with their own set of functions and responsibilities. As a result
of the merger, Breon Corcoran was appointed Chief Executive Officer on the 2 February 2016.
The board currently includes three executive directors, One Independent non-executive director and
eight independent non-executive directors. The nomination committee found that having a board of
12 directors at the Paddy Power Company suited the businesses need for the sufficient skills and
expertise necessary.
Business Ethics and Cultural ContextPaddy Powers approach to Corporate Social Responsibility is to ensure that their current customers
gamble in a responsible manner. Paddy Power have established many initiatives and schemes
throughout the years to try and promote responsible gambling. They contribute huge sums of
money on an annual basis to charities and organisations related to Paddy Power.
In 2015, Paddy Power donated €733,000 to charities around the world. In addition to this, the
employees of Paddy Power raised funds of over €185,000 for the Paddy Powers nominated charities
of the year Special Olympics Ireland and Special Olympics Great Britain.
Some of the Paddy Power initiatives are as follows
Senat Group-Launched in 2014, The Senat group was established to promote responsible
gambling. The idea behind the group was to help raise awareness of responsible gambling.
The group provides information on the risk of Gambling and how to stay in control of
gambling. The advertising costs for this group are estimated at approximately £7.9 million
since the launch between radio/television campaigns and over 6500 posters in shop
windows.
Sports for all- The motto used at the Paddy Power Headquarters is “Leave no one behind”.
Paddy power held many events in order to raise money for the special Olympic charity
partners. These events included football tournaments, walking over hot coals, Paddy Powers
mini special Olympic and many more fun but beneficial activities
Adult Enterprise Programme- The aim of this programme is to promote entrepreneurship in
disadvantaged areas. Paddy Power invested over £38,000 in 2015 to this programme.
However, Although Paddy Power have contributed large sums of money to Charities and
organisations to promote responsible gambling, there has been some instances of unethical
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Paddy Power Report Analysis
behaviour from Paddy Power. This behaviour is mainly related to their advertising. For example,
Paddy Power had extremely bad publicity in relation to the Oscar Pistorius case. Many people
believed it was highly immoral for Paddy Power to be making money of a murder trial, However,
Paddy Power defended themselves with a statement in the Independent on the 03/03/2104 stating
“This is the biggest profile trial that has ever been. It’s the only topic of conversation around the world.”
“It’s to provide customers with the opportunity to bet on something that everyone is talking to.”
(Jivanda, 2016)
Strategic ChoicesCorporate strategy and Diversification
Product/ Market DiversityPaddy Power have a range of different products/services which they offer to customers in an attempt
to gain a higher market share and to cater for the specific needs for the majority of their customers. In
addition to the gambling services which Paddy Power offer at their retail outlets, Paddy Power also
offer technological games through phone apps and board games for fun.
The diversity of the games which Paddy Power offer are as follows
-Roulette -Black Jack - Virtual Games
-Card and Table Games -Video Poker -Tv Games
-Slots -Deal or No Deal - Arcade games
Games in the retail outlets
Paddy Power aims at a mixed Variety of customers. Some Customers of Paddy Power enjoy betting
as a social hobby and do it for fun. Some become addicted and they feel they need to participate in a
gambling activity.
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Paddy Power Report Analysis
As well as being interested in gaming and gambling, a majority of Paddy Power’s market segment are
interested in sports and my bet on teams/people in sporting activities. The most popular sports which
gamblers enjoy betting on are
G.A.A Golf Tennis Darts
Soccer Horse Racing MMA/Wrestling
Rugby Darts Cricket
There is also a strong increase of gambling coming up to Christmas with Reality TV shows such as
The X Factor, I’m a celebrity get me out of here, Britain’s got talent and Celebrity Big Brother.
People enjoy to bet on who they think will win the contest.
Paddy Power are innovative and create different betting competitions depending on what is popular at
the time. For example, for elections they put on a poll for people to place bets on.
For this reason, Paddy Power appeal to a wide range of customers in their huge market base.
Direction and Methods of Development
Annsoff Matrix and Paddy Power
In order to analyse the different strategic directions of Paddy Power, I focused on the Annsoff
Matrix. This matrix is a strategic planning tool which companies use to help executives, senior
managers, and markers establish what needs to be done to improve the future growth of the
25
Paddy Power Report Analysis
company. (Annsoff Matrix, 2016). As one of the rationales for the Paddy Power and Betfair merger
was to create a “stronger combined group with market-leading talent, technology and operations”,
(Home, 2016) I feel it is appropriate to classify Paddy Powers current strategy under group A and
Group B
Market Penetration
This strategy focuses on increasing the market share within the current market using current
offerings. As mentioned before, Paddy Power are holders of one of the highest market shares in the
industry, and they aim maintain their position in the market in a number of ways. Since Paddy Power
was first established in 1988, the main service which the company offers is a fun and entertaining
betting experience. Although Paddy Power has produced many new ways of gambling throughout
the years, Paddy Power’s outlets have been running since the establishment of the company.
New Product and Service Development
This strategy involves delivering new products or services to the existing markets. In order to be
successful with this strategy, Paddy Power needs to understand their changing customer needs. As
I’ve mentioned before, in previous years Paddy Power have continued to release new modes of
gambling based on their customer needs and new technologies. With their production of their online
webpage and e-gaming services, Paddy Power have continued to engage with their market segment
throughout the years which has helped them to maintain their high market share.
Market Development
This is the strategy that involves Global Market Share, Global strategic market and Global Balance.
The recent merger will be a huge advantage of this strategy as Betfair have a presence in not only
the UK and Ireland but in Australia. Betfair have a license to operate in a range of other countries
such as Malta, Spain, Italy, The USA, Denmark and Bulgaria so the recent merger could be a huge
opportunity for Paddy Power to take advantage of the global market.
Methods of Strategy Development - Mergers, acquisitions and alliancesOver the years, Paddy Power has been involved in three main Acquisitions and mergers. The main
mergers which took place was the merge of the forty retail outlet, that established the Paddy Power
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Paddy Power Report Analysis
Company and the recent Betfair and Paddy Power merge. The main Acquisition which occurred in
Paddy Power was the McGranghan Merger.
The first merger of Paddy Power occurred when the company was established in 1988. The strategic
motives behind this merger was to gain a wider customer segment base and to eliminate
competition. The combination of the 40 retail outlets encouraged increased innovation of new
products and services for the Paddy Power company. There was also financial motives for this
merger such as improved financial efficiency. Combining the retail outlets, and rebranding them
under the same name, improved the global impact of the company.
McGranaghan Racing Acquisition
In 2008, Paddy Power took over the ownership of the Northern Irish Company ‘McGranaghan
Racing’. McGranaghan Racing was a leading independent bookmaker whom were based in Belfast.
This acquisition meant that Paddy Powers 241 Licensed betting Offices between Ireland and the UK
was going to be increased with a further eight licensed betting offices.
McGranaghan Racing Company was founded in 1952 and contained 50 employees at the time of the
takeover. Paddy Power retained all of the 50 staff members from the company. Thing location of the
Licensing betting offices are as follows:
1. 3 in Belfast City Centre
2. 3 in West Belfast
3. 2 in Belfast Suburbs
The consideration paid to McGranaghan for the takeover was £19 million.
CEO of Paddy Power at the time of the acquisition, Patrick Kennedy, Stated
“McGranaghan has a similar business model to our own, employing a very competitive offering to
drive very high shop turnover and profitability. Acquisition is the necessary route into this interesting
market and McGranaghan is an ideal entry point for Paddy Power. The estate has an attractive mix
of different locations and like Paddy Power is a punter focused business which promotes a very
competitive and attractive offering that will drive both footfall in our shops and increased
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Paddy Power Report Analysis
profitability throughout our company”. (Plc et al., no date)
Kennedy believed that the company had already gained profit and success in Northern Ireland
through use of intangible services such as online betting and phone services. He explained how
having tangible features in Belfast, such as an outlet and offices, would make a huge difference to
the company’s market share. This was a huge opportunity for Paddy Power to introduce products
and services to Northern Ireland. The company invested a significant seven figure sum into this
acquisition by refitting the outlets with all the trading used under the Paddy Power brand name.
The advantages for Paddy Power for this Acquisition was as follows
I. It enabled Paddy Power to move rapidly into new markets without much marketing
necessary.
II. By doing so, it extended to a new geographical area
III. McGranaghan Racing has underused resources that needed to be resold. By making this
purchase, Paddy Power extended their market size and their market share.
Paddy Power and Betfair Merger
The most recent strategic decision for Paddy Power was to merge with competitor company
‘Betfair’. The rationale behind this merger was
The merger of the two companies would produce a stronger combined group. The financial
motive of the merger was to create greater scale leads to higher return on investment. The
strategic motive for the merger was to combine the two industry leading groups. The
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Paddy Power Report Analysis
combined companies together provided a significant strength in capabilities and talent. The
two companies produce extremely strong and distinctive brand images so the merge will be
of great benefit.
The merger established significant cost synergies
Approximate £50 annualised on a pre-tax basis. The complete benefit of the synergies which
were caused by the merge are to be achieved after three years. The Integration principles of
the merge meant shared technology, operations and corporation function.
Combined brands, capabilities, channels and geographic mixes meant a stronger company
with a larger market share
Pooled capabilities and talents can help both companies in terms of Product Development,
Risk and Trading, Online Marketing, Social Media and customer operations.
The greater scale drives growth for the company
The merger also gave the combined company a high cash generative and a strong balance
sheet.
Although the companies of Paddy Power and Betfair create successful synergy, There is very little
diversification created from the merger. The strategies which Paddy Power currently possess are
built onto their current products/ Services and aimed directly at Paddy Powers current customers.
In order to analyse the different strategies of Paddy Power, I focused on the Annsoff Matrix. This
table is a strategic planning tool which companies use to help executives, senior managers, and
markers establish what needs to be done to improve the future growth of the company. (Annsoff
Matrix, 2016). As one of the rationales for the Paddy Power and Betfair merger was to create a
“stronger combined group with market-leading talent, technology and operations”, (Home, 2016) I
feel it is appropriate to classify Paddy Powers current strategy under group A and Group B( See
highlighted below).
As you can see in the above table, Businesses in group ‘A’ implement a “Market Penetration”
Strategy. Businesses who are classified under this section try to grow their company by using existing
offerings to their current customer base. The larger the market share, the bigger the impact this
strategy will have on businesses who choose to use it. The two ways in which this can be achieved is
by
1- Selling more products to current customers
2- Gaining a larger customer base within the current market segment.
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Paddy Power Report Analysis
The merger of Paddy Power and Betfair established a wider consumer base for both companies, as
they are were both singularly two of the fastest growing internet betting operators in the world. By
merging the companies, it has allowed Paddy Power to focus on a wider market share. One of the
key approaches for Paddy Power when dealing with this section is to maintain the market share of
its current services/products. They do this by putting huge emphasis on their advertising, which as
discussed, Paddy Power have proven to excel in. Another way in which Paddy Power engage with
this particular strategy is by influencing customers to use the service more frequently. Paddy Power
have done this by introducing Mobile Phone Apps and Internet betting. (Reserved, 2015) However,
Consolidation is also a huge factor when implanting the Market Penetration Strategy in any
company.
Implementing the group ‘B’ Strategy is another strategy which Paddy Power use effectively in their
company. The new product and Service Development strategy is based on the theory that a
company attempts to gain profits and growth by creating new products and services for existing
customers.
As you will have noticed after reading the history of Paddy Power, The Company establish new
products and services in an attempt to engage with their customers on a regular basis. The variance
of products/services available by Paddy Power plays a huge roll in the success of the company.
Success Criteria When Paddy Power (The fourth generation) attended a Networking event in Limerick of October
2015, He admitted that “Engaging with customers” was the main factor which causes the company
to be so successful. He explained to the attendees of the meeting that the method Paddy Power
engage with the public the most is through advertisement. He described the advertising that Paddy
Power carries out as ‘Mischief’. He explained how ‘Mischief’ has such a vital role in their advertising
that the company has employed someone to fill the position of “head of mischief”.
At the same meeting, Paddy Power recalled some of the advertising stunts which led to the publicity
of Paddy Power worldwide. Some of the advertising stunts which he remembered was turning up to
the Brit awards dressed as daft Punk and revealing the Paddy Power pants on the red carpet. Paddy
Power explained that these types of “Stunts” committed by Paddy Power took over a year to plan.
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Paddy Power Report Analysis
International Strategy
Paddy Power are an International
company whom operate retail
outlets in Ireland and the UK.
They also operate websites in
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Paddy Power Report Analysis
Ireland, The UK, Australia and Italy. They are in possession of a games development business in
Bulgaria.
Reasons for Australian Expansion
After the purchase of Sports bet by Paddy Power in 2009, the two companies continued their
success due to the similar values. While employing 470 employees across Australia and remaining
market leader since Paddy Power bought over the company, Sportsbet have continued to be
innovation in the production of new products. Sportsbet were the first company to introduce
products such as Top Tote Plus and Protest pay out to the Australian market. Sportsbet and Paddy
Power are similar in a marketing sense as they both enjoy mischief marketing. This is how Paddy
Power predicted that this strategic purchase would be successful.
Reasons for Italian Expansion
As Paddy Power are always looking to expand and grow the company into bigger markets, Italy was a
majorly attractive market to Paddy Power as they have the biggest gambling market in the world.
They entered the online Italian market in 2012 and displayed their professionalism which they
gained in Australia, Ireland the UK. The response to Paddy Power in Italy was ecstatic, which led to
the introduction of the second online product, Casino. For each game which Paddy Power produces
online, they produce a phone app on IPhone or Android to match the game.
Reasons for the Bulgarian Expansion
Paddy Power work closely with the employees at the Bulgarian company Cayetano. After Paddy
Power Acquired the company in 2011, they have continued to produce new games and technologies
for Paddy Power. Paddy Power used the Bulgarian Expansion as a way to exploit the strategic
capabilities of the technological industry in Bulgaria.
The Paddy Power Betfair Plc. formed as a result of the merger has become market leader in all of its
operating countries, except for Bulgaria. The company also has strong business to business and
business to customer relationships around the world.
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Paddy Power Report Analysis
Business Level Strategy
Forces Influencing Business Strategy
Resource Allocating is one of the useful dimensions of decision making in corporate strategy. The
main resource allocating tool which I focus on in relation to Paddy Power is ‘The Boston Consulting
Group’s Growth Share Matrix. This model is based on the theory that business units can be classified
into four different categories, which are Stars, Cash cows, Question Marks and Dogs. The different
groups are categorised in accordance to their growth rate and Market share. I believe the Phone
Apps and Egame products are strong business units for Paddy Power. The reason I believe these are
forces influencing business strategy is because they have their own competitors and they are a profit
centre for the Paddy Power Betfair Plc. For example, there are many phone apps out whom compete
with the Paddy Power phone App. Someone the main competitors would be Ladbrokes phone App
and Net Bet App.
I think Paddy Powers E-gaming and App units can be classified as stars. The reason I believe this is
because Paddy Power are market leader so their products are extremely popular with high growth
rate and High market share. They account for over 45% of the firm’s profits but they do (especially
the e-gaming products, as they are technological) require large capital expenditure. I think they are
funded greatly by the cash cows that are the retail outlets of Paddy Power.
Bases of competitive AdvantagePaddy Power base their competitive advantage on their market position. As they are current market
leaders they have a huge advantage over other firms in the industry. In Italy, by the end of 2015,
they launched 5 new mobile games. As Italy has one of the highest level of smartphone and tablet
interaction in the world, this was a huge competitive advantage for Paddy Power.
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Paddy Power Report Analysis
Paddy Power thrive in becoming leaders for customer care and responsible gambling. Due to their
committed employees, Paddy Power have already proved themselves to be a strong and reliable
operator in all of the countries which they operate in.
Since Paddy Power was established, they have been leaders of the industry in terms of Social Media,
Updated with technologies such as Apps and Smartphones, and they predicted the increase of
demand in online Gambling. The reason for which Paddy Power believe they have a competitive
advantage over others is because they put peoples demand for entertainment first.
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Paddy Power Report Analysis
Sustaining Competitive AdvantagePaddy Power aim to keep the high standards of their company by maintaining their retail outlets to
make them feel new and trendy. Instead of the common look of a bookies, which is grotty and dull,
Paddy Powers has ensured each of their retail outlets are bright and clean. They want to provide
exciting and social able locations where by people can go and enjoy their time. They have
professional staff with extreme knowledge in gambling working at all times to ensure high quality
customer satisfaction. The number of active online customers in the UK alone for Paddy Power
increased by 76% between the years of 2009 to 2014.
Paddy Power release new products on a monthly basis to keep their current customers satisfied.
One of the most essential factors which Paddy Power include in all of their new products is that they
are focused on convenience and content.
Paddy Powers brand image is a huge consideration in sustaining competitive Advantage. Paddy
Power Like to listen to their customers and they also like their listeners to feel heard. The company
make it their mission to take on board any criticism or advice which they received from the public
and integrate the information into their business strategy. On average, every male adult between
the UK and Ireland whom own a Facebook account, have at least one Paddy Power account.
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Paddy Power Report Analysis
Strategy in ActionStructure
The different sections of the Paddy Power company include
Marketing and Analysis section
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Paddy Power Report Analysis
The marketing team, Their Advertisements and their taglines are the forces behind the success of
Paddy Power. As mentioned earlier in the report, they use mischief in their methods of advertising
and they are not afraid to cause a reaction (good or bad). They believe any publicity is good
publicity. Within the marketing section of the company there are three sub-groups. These sub
groups include the brand team, The Online Marketing Group and The Business Analytical Team.
Risk Section
This section are responsible for listening to customer research and the checking the profitability
modelling of the company. They also chew up behavioural analytics and market/competitor analysis.
They use their individual skills like numerical or technological to tackle foreseeable problems that
may arise. They tackle questions such as how is the industry evolving and what can Paddy Power do
in order to keep up with the rest of the Industry. The sub groups in this section include Trading,
Research Analytics, Sports and Racing sections. (Risk, 2016)
Product and Technology
In this department of Paddy Power, They tackle the most complex B2B and B2C technological
problems within the company. This section involves innovation and imagination if necessary. If
innovation involves the production of a new product then it’s important this strategic process is
carried out. They are the ones to deal with the game operators in the world. There is only one sub
group in this section and it is called CPO. The CPO is made up of 450 people from all over the
countries where Paddy Power Operate.
Retail
This is the section which most people will be familiar with. Paddy Power believes the employees in
their retail stores are more professional and more knowledgeable then employees in other retail
outlets. Paddy Power employees staff who will work effective and efficiently. This means working at
a fast pace to deliver the best but also the quickest possible service to customers. The sub groups in
this section are shop manager, Deputy/Assistant Manager/Cashier or sales assistant.
Sports
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Paddy Power Report Analysis
Paddy power describes this section of their company as a machine. Employees in this section work
so hard and so closely together that they replicate a machine. This section was established to gather
a group of employees with the best product, market and commercial minds in order to create a
perfect product for customers at a fair price. The sub groups in this section are the commercial
section and the product Section.
E-Gaming
This section is described as being the most fun section at Paddy Power. This section are in charge of
producing and testing the games which Paddy
Power put on offer. The sub groups in this section
are organised by delegating who tests what game.
The sub groups are games, Poker, Bingo, Live
Casino, Casino, High value and awards.
Business support
This section involves all the departments which is necessary in a business to keep the company
running. They include The HR, Finance Section, Property, Legal, Audit and Compliance, Commercial,
insights and corporate affairs.
Customer Operations
The people in this section are the people who deal with the customer services of Paddy Power
whether it’s online or over the phone. It is important for the employees in this section to be
courteous, Helpful and polite while on the phone to customers. The subgroups in this section include
responsible gambling, Operational Success, Customer Support, Customer Security Investigations,
Customer Payments, Customer Accounts and Dial-A-Bet.
Enabling SuccessManaging people/Information/Finance and Technology
The board of directors comprises of the following
Chairman- Gary McGann
CEO- Breon Corcoran
Chief Operating Officer- Andy McCue
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Paddy Power Report Analysis
Chief Financial Officer-Alex Gersh
8 non-executive Directors (4 from Betfair, 4 from Paddy Power)
Paddy Power currently employees over 7000 employees globally, between Betfair and Paddy Power.
ConclusionMy aim for this report was to carry out an expectation of an Irish Company whom is listed on the Dublin/UK stock Exchange. The company, which I clearly based this report on, was Paddy Power. The structure of this report was to include
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Paddy Power Report Analysis
Paddy Powers strategic Position and Paddy Powers Corporate-level/ International Strategy, Business Strategy and Methods of Development.
Paddy Power and Betfair proclaimed after the merger that
“We put our punters first and no future is too bright for them. Together, we are leading the way in defining what a 21st century bookmaker should be-and bring a little bit of mischief with us along the way” (Investor Links, 2016)
Throughout this report, the main issues which repeatedly appears is the marketing methods of Paddy Power and the effects of the most recent Merger of Paddy Power with Betfair.
The Paddy Power company enjoy gaining profits and publicity from their marketing advertisements and campaigns. These campaigns are known to be extremely cheeky and in some cases, offensive, to people in the public. Paddy Power enjoys causing public disagreements and debates through their advertising as all publicity they receive is good publicity. For example, Their Oscar Pistorius advertising campaign which was mentioned in this report cause major public uproar as people described Paddy Power as being distasteful and disrespectful.
After completing this report and the analysis of the company, I have learned that Paddy Power Participates in this type of aggressive marketing because they gain more profits from being in the public eye. They are also an extremely successful company in terms of their SWOT and PESTAL that negative press will not have any significant effect on their market share.
The recent merger with Betfair was a highly successful and clever strategic move carried out by both companies.
Betfair is the world’s largest internet betting site. Paddy Power is one of the most successful Irish bookmakers. Before the merge, they were one of the leaders in their industry. Now, Because of the merger, Paddy Power Betfair Plc are market leaders with the largest market share in the industry.
After completing the report and studying various elements of Paddy Power such as the PESTAL Analysis and the strengths and weaknesses since the Merger, I believe Paddy Power are going to continue to be a successful company and gain large profit margins. They are constantly producing larger varieties of technical products in order to satisfy customers as well as operating their outlets so I believe they have the essential resources to remain market leader of the Industry for the foreseeable future.
If I was to redo this Report again, I would ensure to organise my time more effectively as I found it hard to stick to my original schedule and as a result, I did not finish the report on my predicted finishing date. I finished a week later then I had originally planned.
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Paddy Power Report Analysis
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Paddy Power Report Analysis
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Paddy Power Report Analysis
Declaration of Plagiarism
I declare that the Work I am submitting for assessment by the Institute examiner is entirely my own work, except where the author or source has been duly referenced and attributed.
I confirm that this material has not been previously submitted for a degree or any other qualification at ITB or any other institution.
I further confirm that I have read and understand the Institute policy on plagiarism in assignments and examinations (3 ASO8.doc) and that I am not, so far as I am aware, in breach of any of these regulations.
Signed Student ID
Sarah Fay B00061143
Course Module
Honours degree General Business Strategic Management
Date
27/04/2016
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