Porter Five Force Analysis
For thousands of years, mankind has enjoyed spending money on games of chance. Today this has developed into a multi-billion dollar worldwide phenomenon- the gambling industry.
While the total number of gambling enterprises has fallen in recent years the overall number of people employed in the industry has increases, suggesting that enterprises are now larger than they were a decade ago. The way people bet has been revolutionised of recent years with the online gambling industry taking over the traditional high street bookmakers. Betting exchanges on the internet where punters can offer bets to other punters. Meaning the average punter can now act as the bookie and say that a certain event will not happen.
To understand the impact of the gambling industry, one has to consider the percentage of people that partake in gambling. Knowing it has been around for two millennia, it is interesting to observe today 80 to 85% of people will gamble in any given year.
The gambling industry has evolved greatly in recent years due to the development of online gambling, this is clearly the reason for the rapid growth in the market. Along with new markets such as the online poker industry, that has taken the world in a massive fad with millions playing poker online.
The gambling industry tends to be an industry in which people will use their disposable income, but the desire to win more and the increased joy from having a larger bet cause's people to spend more money on gambling than they wish. This is a market driver for the industry but also the general increase in people gambling has become the main market driver in recent years. (Party Gaming) For the five year period from 2005 to 2009, it is estimated that revenues generated by the global online gaming market will increase to approximately $22.7 billion, representing a compound annual growth rate of approximately 22 per cent.
From this estimation of expected spending in the online gambling market, it shows a market with great potential.
The following report analyses the dynamic market within which gambling exists, and the way the online gambling industry beginning to takeover the gambling industry. From the report on the market it will be possible to have a clearer understanding of whether the market will continue to grow or whether the market can not continue to grow at such a rapid rate.
The following report analyses the dynamic market within which online gambling exists. The report will focus on areas such as
Porters Five Forces
Such consideration of the market will enable a clearer understanding of whether the market will continue to grow at such a rapid rate.
There are four main gambling sectors that attract the vast majority if online gambling
Online poker and betting exchanges are dominating the market and have only been introduced in recent years to the online gambling market.
Sports betting and casinos still have large market share of the market but growth has slowed down.
The size of the online gambling market for 2004 was $8.2 billion for the world. In 2004 in the U.K £7.4 billion was spent in gambling. Even though stats are not that easy to compare it shows that online gambling has not yet dominated the gambling market and there is potential for further growth.
PEST Analysis is analysis of macro-environments that affects all firms. PEST stands for Political, Economic, Social, Technological factors of the external macro-environment. Such...
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