The Internal and External Business Environment of Paddy Power

4215 Words Feb 1st, 2016 17 Pages

Student No: 15020231



Table of Contents 1.1 INTRODUCTION 1 1.1.1 An Overview of Paddy Power 1 2.1 MACRO (IPESTEL) 2 2.1.1 International 2 2.1.1a Expansion into Australia 2 2.1.1b Business-to-Business (B2B) Venture 3 2.1.2 Political/Legal 3 2.1.2a Offensive Ad 3 2.1.2b Under-age Bet 4 2.1.2c Rob Keane’s Lawsuit 4 2.1.3 Economical 5 2.1.3a Global Economic Downturn 5 2.1.3b Foreign Exchange Rate 5 2.1.4 Socio-Culture 5 2.1.4.a Responsible Gambling 5 2.1.4b Sports and Social 6 2.1.4c Health and Safety Policy 6 2.1.4d Publicity stunts 6 2.1.5 Technology 7 2.1.5a Mobile Betting 7 2.1.5b Acquisition Cayetano 8 2.1.5c Marketing Strategy 8 2.1.6
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I guess they do care for their customers.


IPESTEL: International, Political, Economical, Social Culture, Technology, Environmental and Legal. In this section, we will consider the external environmental analysis based around the factors in relevance with Paddy Powers.

2.1.1 International

A process by which businesses develop international influence or start operating on an international scale is known as globalization. Organizations today see globalization as an important step towards growth and Paddy Powers has done just that e.g. the expansion to Australia, B2B venture and so on.

2.1.1a Expansion into Australia
Australia was the company’s first stop; in 2009 51% of the company’s online stake in online bookmaking was brought into Australia as (Paddy Power, 2015). By 2010, the rest of the shares were brought in (Paddy Power, 2015).

2.1.1b Business-to-Business (B2B) Venture
Paddy Power established partnership overseas. The company shared its technology with partners overseas as a B2B venture. Although the point can be considered as a technological factor, it would be seen more as an international factor for this case study.
The first B2B partnership in 2009 was in France, with Europe’s largest betting company PMU (Paddy Power, 2015). Paddy Power provided the French horse racing pools operator, PMU with sports pricing and risk
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