How has the external environment changed the way Ladbrokes operate and how it affects their Strategy as a business?
Citation
(2015) How has the external environment changed the way
Ladbrokes operate and how it affects their Strategy as a
business?, no. 103.
Abstract
Purpose - this exploratory research aims explore the impact of growing technology
advances within the betting industry as these advances have made the external
environment ever more important to the way Ladbrokes operate. It also aims to
challenge whether or not the government is being too hard on the betting industry
by looking at the effectiveness of the new practices introduced.
To help achieve these aims the following objectives were derived:
1. The researcher intends to construct an environmental analysis of
Ladbrokes to show what specific factors affect the company in how they
go about their business. For example using such frameworks as
PESTEL and the five forces.
2. To complete the aim the researcher intends to analyse what technology
advances have occurred in the betting industry for example gaming
machines and the increased use of e-commerce and online gambling
and compare how these areas of the business impact Ladbrokes.
3. In order to achieve the aim the researcher intends to analyse the role the
government play in the betting industry. The researcher would also do
interviews and questionnaires in order to test whether or not these
practises are effective and also if they are working, to then show if these
new orders are either too hard or appropriate and necessary.
Design/Methodology - To address the research a mixed method approach was
adopted. Questionnaires were distributed amongst five shops and a semi
structured interview was conducted with a business support manager whose name
while be undisclosed for confidentiality purposes.
Findings - It was found that the external environment has played a key role in how
Ladbrokes operate. The study identified that Ladbrokes were aware of the external
environment and particularly successful with the use of its Fixed Odds Betting
Machines. However the study also showed that Ladbrokes fell behind it competition
when it came to e-commerce and mobile gambling. The study also showed the key
role that governments now play in the betting industry and showed that the new
legislation being introduced did not help people with gambling problems and that
further study needed to be sought.