The paper "Australian Gambling Industry Analysis" is a great example of a business assignment. The recent global economic crisis has impacted adversely on the gambling industry in Australia. This is as a result of the Australian consumers’ decisions in cutting down on their discretionary spending hence causing a sharp decline in the amount of money they spend on gambling. As a result, operators in the gambling industry have witnessed a sharp decline in their revenues and hence decrease in profitability. Betting services in other areas of the world have also witnessed declining revenues.
This is so especially in Las Vegas, Macau and Japan. The decline in revenue witnessed in the gambling industry has, in turn, affected the companies that supply the industry which has been forced to cut down on their profit projections. Other factors that have impacted negatively on the Australian gambling industry include the outbreak of equine influenza which has negatively affected horse racing, the uncontrolled increase in online gambling as well as the government’ s decision to deregulate gambling in Australia. This paper focuses on the general and specific environmental conditions that are impacting on the Australian gambling industry.
The paper will also explain the porter’ s five forces model on the industry in order to determine the attractiveness of the industry to new entrants as well as give recommendations to the players in the organization on how they should weather the storm of the global economic downturn. What are the general and specific (or task) environment conditions impacting on organizations in the gambling industry? There are some areas of the general and task (specific) environmental conditions impacting on the gambling industry since the global economic crisis.
The general environment can be defined as factors or conditions such as economic, political, legal and social circumstances which affect everyone in a given industry or market in more or less the same way and on a long-term basis (Richard, 2008). This means that an individual organization can not influence its general environment. The following are the general environmental conditions that have impacted the gambling industry in Australia. Economic dimension – although the gambling industry in Australia has been growing over the years, the industry has witnessed glaring downturn trends as a result of the recent global economic crisis.
This is because the crisis has forced consumers to cut down on their discretionary spending hence impacting negatively on the amount spent on gambling activities leading to the decline in the industry’ s revenue. As a result of the crisis, there has been a decline in the number of visitors making use of gambling facilities. The decline is expected to continue as long as the effects of the crisis are being felt. The reduction in the number of visitors has, in turn, forced casinos to cut down on the number of gaming tables and slot machines in a bid to cut down on operating costs.
The effect of all this is the reduction on the level of profitability not only in the gambling industry but also on other similar industries. Social-cultural dimension-these are the customs, values and demographic characteristics of the societies in which the business operates. This determines the kind of products, values and the code of conduct that the society values. The changing attitude by society towards smoking has also had a depressing impact on the gambling industry.
The increased pressure of full indoor smoking bans in Victoria and NSW has had a negative impact on the gambling industry. Furthermore, society is increasingly adopting a stay at the home attitude and hence reducing the amount of time spent in gambling activities (Mir 2009). The political-legal dimension- this defines the relationship between the business and the government. It incorporates rules and regulations that define what the organization can or can not do. Of late, the government has enacted laws that have had a negative impact on the gambling industry.
For example, the Victorian government in April announced a change to the state’ s gambling industry structure that will effectively terminate licensing in the industry by 2012 (Damson, 2009). International dimension-this is the extent to which a business organization is involved or is affected by businesses in other countries. This is more so for multinational organizations which operate in more than one country. The Australian gambling industry, for example, has been negatively affected by the new Chinese visa Chinese laws which have limited travel to Macau thereby derailing the industry’ s revenue growth.
This is due to the fact that China is a major source of visitors who contribute greatly to the industry (Alexis, 2008).
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