The paper "Porter’ s Five Force Model of Australian Gambling Industry" is a good example of a business case study. Australia has a long history for being in the gambling industry and has one of the countries which have a very high per capita income being spent on gambling. The turnover of the gambling industry is more than A$80 billion and is increasing with the passage of time. The industry has been recently affected due to the economic recession which has engulfed the country. This has made people stay away from casinos as they fear the loss of a job.
Also, changes in the government structure and increasing competition from various internet players are making it difficult for the Australian gambling industry to present similar results. This is making difficult for the government to frame a way that helps to improve the economic conditions of the gambling industry. Purpose of the report To conduct an environmental analysis so that factors which are affecting the gambling industry can be found out To identify the Porter Five Force Model for the gambling industry To provide recommendations to the gambling industry so that ways can be developed to come out of the present situation To identify another industry which is affected similarly to the gambling industry Environmental conditions impacting the gambling industry Analyzing the external environment will help to understand the manner in which the external market is having an impact on the gambling industry.
Identifying these factors will help the gambling industry to build a framework which ensures that the industry is able to perform similarly (Kotler, 2001) Political Political factors have an influence on every industry and changes in the rules and laws framed by the government can impact the way business is conducted.
Australia is a country which has a high influence on politics and changes in the government brings about a change in legislation which has an effect on an industry strategy (Oppapers, 2010). This is evident in the case of the gambling industry in Australia where a change in the government of Victoria brought about new legislation for the gambling industry. This allowed the players to conduct their business without a license and increased competition by allowing players to conduct business online. Economic Economic environment shapes the performance of every industry as speedy growth ensures that the industry is able to flourish.
Changes in the growth rate and mindset of people have an effect on the performance of the organization as an industry are driven by people and changes in their perception bring about changes in the working environment (Justin, 2008). This is evident in the gambling industry. The widespread recession has affected Australia and has dented the confidence of people. This has resulted in people postponing their expenditure on casinos for the future.
People fear that they might lose their job which has made them take a pessimist approach and has resulted in the revenues for the gambling industry to fall. Social The social environment present in a country helps the industry to grow. Australia is seen to have a social trend towards gambling and it constitutes around 26 percent to the GDP. The manner in which the social environment accepts gambling as considers it a part of human lives has resulted in the gambling industry to flourish. People working in the gambling industry realize that the perception of the people supports gambling which enables the different players to bank on the business opportunity provided and has enabled the industry to grow.
Cuizon, G. 2009. Audit on Gambling Industry Marketing Strategies. The 4P’s of Marketing, Suite 101.com
Justin, A. 2008. Gambling Industry. Service Sector Management. Business Week
Kotler, P. 2001. Marketing Management. Page 201, 11th edition, Prentice Publication, Upper saddle River, New Jersey
Koranteng, J. 1999. Aristocrat Leisure takes early lead in competition. Advertising Age International, Volume 24, Issue 37, page 63-71
Mullins, K. 2004. Critically examine the main drivers for gambling industry growth. Free Press, New York
OPpapers. 2010. PEST Analysis Australia Gambling Industry Sector. Research paper. Retrieved August 31, 2011 from http://www.OPpapers.com
Rowley, T. 2005. Porters Five Force Model. Prentice Hall. Pearson, Harlow