Paddy Power -Sarah Fay

Paddy Power Report Analysis
Sarah Fay
B00061143
Department of Business School of Business & Humanities,
Institute of Technology,
Blanchardstown,
Dublin 15
[Word Limitfor Assignment:10500 Actual Word Count: 10317]
The CourseTitle: General Business
The Module Title: Strategic Management of Information Systems
Submission Date: 27/04/2016

Contents
Executive Summary ...................................................................................................................... 1
History of the Company ................................................................................................................ 2
The strategic Position of the Company........................................................................................... 6
The environment...................................................................................................................... 6
The macro Environment ........................................................................................................6
Industries and Sectors ...........................................................................................................8
Competitors and Markets .................................................................................................... 11
Opportunities and threats.................................................................................................... 11
Strategic Capability of Paddy Power......................................................................................... 12
The Critical Success Factors.................................................................................................. 12
Resources and Competences................................................................................................... 14
Resources........................................................................................................................... 14
Competences...................................................................................................................... 15
Distinctive Capabilities......................................................................................................... 16
Bench-Marking with Competitors......................................................................................... 16
Financial Reports................................................................................................................. 17
Strengths and Weaknesses of Paddy Power.............................................................................. 17
Strengths............................................................................................................................ 17
Weaknesses........................................................................................................................ 17
Strategic Purpose.................................................................................................................... 17
Values, Mission, Vison and strategic Objectives..................................................................... 17
Corporate Governance and Governance Structure ................................................................ 19
Corporate Governance ........................................................................................................ 19
Business Ethics and Cultural Context .................................................................................... 21
Strategic Choices........................................................................................................................ 22
Corporate strategy and Diversification..................................................................................... 22
Product/ Market Diversity.................................................................................................... 22
Direction and Methods of Development............................................................................... 23
Methods of Strategy Development - Mergers, acquisitions and alliances................................ 25
Success Criteria................................................................................................................... 28
International Strategy ............................................................................................................. 30
Business Level Strategy ........................................................................................................... 31
Forces Influencing Business Strategy .................................................................................... 31
Bases of competitive Advantage........................................................................................... 32
Sustaining Competitive Advantage ....................................................................................... 33

Strategyin Action....................................................................................................................... 34
Structure................................................................................................................................ 34
Enabling Success ................................................................................................................. 36
Conclusion ................................................................................................................................. 37
References................................................................................................................................. 38
Declaration of Plagiarism ............................................................................................................ 42

1
ExecutiveSummary
Paddy Power is a globally successful, Gambling organisation whom have excelled in their business
strategies since the company was first established in 1988. Recently, Paddy Power was involvedin a
mergerbetweentheircompanyandBetfair.Betfairisone of Paddy Power’smainonline competitors
so this merger was, not only a great success for Paddy Power, but it also limited Paddy Powers
Competitors.The Chief Executiveof the PaddyPowerBetfairCompanycommentedonthe mergerin
the recently publicised annual report. He stated
“The combination of the two operators with significant growth momentum, aligned strategies and a
strong cultural fit is hugely exciting and our belief in the strategic rationaleforthe deal hasonly been
strengthened following our early days as an enlarged group”
(Breon Corcoran, 2016)
Throughout this report I have analysed the company of Paddy Power Betfair Plc. I have completed
various different analyses on different parts of the company and laid out my results in this report.
Included in this report is an analysis of the following:
The strategicpositionof the company- The strategicpositionof the companyisthe overall objectives
which the company aims to achieve and how they plan to achieve these objectives. Paddy Powers
executivedirectorshave carefullycombinedthoughtsandknowledgetoestablishanew strategicplan
for the new Paddy Power Betfair Plc.
The strategicChoicesof the company- A successful strategicchoice processallowsanorganisationto
make effective andefficientdecisionsforthe company.It isimportantfor the employeesinvolvedin
the strategicchoicesof acompanytodefinethe source of certainissuesandmakedecisionstoamend
these issues.
Strategy in Action- In this part of the report, I have listed and explained the different sections of
operationatPaddyPower. Ineachof thesesectionsthereare subgroupstoensure topqualityservice
for customers from Paddy Power.
Paddy Power is a company who have high regard for their customers and listen carefully to their
customerfeedbackinorderto create a betterservice.Aspart of thisstrategy,theyengage fullywith
theircustomersandinformtheircustomers of new innovations in order to get their thoughts on it.

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Historyof theCompany
Three Irish bookmakers,by the names of Stewart Kenny, John Corcoran and David Power,originally
foundedthe Paddypowercompanyinthe yearof 1988. Thisestablishmentarose afterthe threemen
decidedtomerge their 40 shops inorder to create a sense of entertainmentinthe world of betting.
The name was decided, based on the strength of the
“Power” brand name, among the merged shops.They
decided to use “Paddy” and the colour green as their
signature colourinorder to symbolisethe Irishculture
of the chain. This was a major factor at the time
because the fragmented Irish betting industry was
facinga huge challenge of competitionfromBritain,as
a result of the Irish Tax code. Since being exposed to
the public, Paddy Power has had continued Success
fromthe verystartandcontinuestogainmore andmore customerseverydaybyhavinganaggressive
expansion approach.
In the year of 2000, Paddy Power successfullytackledthe World Wide Web, providing its customers
with an online gambling website “Paddypower.com” The launch of their online website saw Paddy
Power hold the leading positionfor online gambling,Which they have kept hold of to this day, with
the help of the recent merge with Betfair.
In a continuousefforttomake bettinganentertainmentfortheir customers,PaddyPoweropenedits
first shop in the UK in the year of 2002. As a result of the entertainment aspect of Paddy Power
becoming an increasingly important factor for customers,Paddy Power openeda total of 250 shops
in the UK by the year of 2014. This was a larger figure then the number of shops Paddy Power had
opened in Ireland.
In 2004, Paddy Poweragainexpandeditsservicesinorderto keepits loyal customerssatisfied. This
wasthe year theycreatede-gamingproducts,launchingservicessuchasPaddypowergames.comand
Paddypowercasino.com. In 2005, they provided their customers with Paddypowerpoker.com. In an
attemptto gain attentionworldwide for thisnew service,PaddyPowerorganisedthe world’slargest
ever game of strip Poker. This proved to be a success as it led to the production of
paddypowerbingo.comin2006. By the endof 2005, PaddyPoweroperatedin195 outlets (150 based
in Ireland and 45 based in The UK). The total number of Employees at Paddy Power at this stage of
their life cycle was 1,374.

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In 2008 after acquiring the Northern Irish bookmaker “McGranaghan Racing” , Paddy Powers ship
count was brought up to a total of 191 outlets in Ireland.
The production of the e-gaming products then led to the expansion of Paddy Power in 2009.
2009 was the year that PaddyPowerdecidedtoestablishmarketsoutsideof Irelandandthe UK. The
International expansionof PaddyPowerbeganwithAustralia.PaddyPowerpurchaseda51% stake in
of the online bookmakersinAustralia“Sportsbet.com.au”.In2010, PaddyPowerthenpurchasedthe
remaining shares. This has had a positive and effective impact on both Paddy Power Company and
Sportsbet as a Sportsbet have been doing electrifying ever since. 2009 was also the year that saw
Paddy Power join overseas partnerships with countries such as France and Canada. The Business to
Business partnership with France involved a company called PMU. PMU is Europe’s largest betting
organisation so this was a huge achievement and advantage for Paddy Power.
A huge developmentforthe Paddy Powercompanyin 2010 was beingthe firstonline bookmakerto
have an appin the Apple appstore.Due totechnologyupdatingquite regularlythroughoutthe years,
PaddyPowerhave to ensure theykeepupto date withwhat’sgoingon inthe worldof technologyin
order to keep hold of its customers. The app was a new and exciting way for Paddy Power to
communicate andengage withitscustomers.Today,The Appis responsible foralarge percentage of
the bets placed with the company. In May 2013, Paddy Power celebrated its millionth download.

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ByFebruary2010, PaddyPowerchainhadatotal of 356 shopswith209basedinIreland,8inNorthern
Ireland and 139 In the UK. Almost two thirds of Paddy Powers profits, however, were being made
outside Ireland.
In 2011, Paddy Power bought the firm “Cayentano”, which is a Bulgarian-based games and
developmentsoftware firm.Thisbusinessstrategy saw a huge increase inemployeeswhocouldhelp
enable Paddy Power to lead the market industry by creating new product developments and
technologies.
2012 was a major year for Paddy Power as many different businessstrategies and Promotions took
place this year.It started out whenthe majorityof PaddyPowersheadoffices,whichwere originally
situated in Tallaght Dublin, were moved to a brand new power tower building in Clonskeagh. After
this,the companyexpandedfurtherinternationallyintothe online Italianmarket.A new Appwasalso
developed for Paddy Power this year which called “first-ever-real-money” casino App. Paddy Power
createdthisAppfor all Apple touchscreendevices. LastlytheylaunchedRollerin2012 and provided
customers with yet another social betting game to keep them entertained called “Bet Dash”.
A repeated successful and busy year was had for Paddy Power in 2013 when they broke the world
record for having the largest painted sign in history. The following is a picture of the sign:
This was the sign that welcomed British and Irish lion’s players to Melbourne airport. Following on
fromthis,PaddyPoweropenedafurther75new shopsall acrossIreland,NorthernIrelandandBritain.
Another international partnership was also formed in 2013 between Paddy Power and Slovakian

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sportsbook Nike. Paddy Power produced a Paddy Power messenger app in the same year which
provided another mode of betting for customers. Another major development for Paddy Power in
2013 was running a campaign with Stonewall which supported Gay Footballers. This campaign was
calledthe “Right behindGayFootballers”Campaignandit involvedsportsmenandsportswomenall
over the world wearing rainbow colour laces in order to support Gay Footballers.
The most recent new strategy which Paddy Power adapted, occurred in 2016. They adopted a new
strategy,inordertostaydominatingtheindustry.Theymergedwiththe company“Betfair”.Itishoped
that this partnership will create the world’s largest public online betting and gaming company by
revenue. The companies plan on doing this by using enlarged scales, Using their experience and
capabilities.Theyalsohave distinctive andcomplementarybrandsintheirfavourso theymake quite
a powerful partnership.

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Thestrategic Positionof theCompany
The environment
The macro Environment
We analyse the Macro environmentof PaddyPowerusingthree different tools. These tools include
 A PEST Analysis
 Key Drivers
 Scenarios
The purpose of analysingthe Macro Environmentof Paddy Poweristo helpdiscoverpossible future
opportunities orthreats for the newlyestablishedPaddyPowerBetfairPlc. These Opportunitiesand
Threats are external tothe companyand are outside the control of the industry. ConsideringPaddy
PowerOperate infivedifferentCountries(Australia,England,Ireland,BulgariaandItaly),A widerange
of information had to be taken into account when completing this analysis.
Firstly, I constructed an in depth PEST analysis to establish the Political, Economic, Social and
Technological factors that affect Paddy Power.
Political Factors
The main political factors which are increasingly impacting Paddy Power are the Government
RegulationsonBetting.MostRegulationsforgamblingare quite similaracrossthe different countries
in which Paddy Powers operates in.
In Ireland on the 15th March 2015, the president, Michael D Higgins, signed Irelands Betting
Amendment act 2015. As a result of his actions, A licensing regime was introduced for Bookmakers
(Including Paddy Power) and betting intermediaries.
InAustralia,The GamblingRegulationsare done attwocompletelyseparate levels.The twolevelsare
as follows
o Central Government
o State and Territory level
The role of the Central GovernmentinregardstoGamblinginAustraliaistoregulate the Hobby.They
are responsible for the passing and amending of the relevant legislations.

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Economic Factors
There is a wide range of negative and positive effects which gambling can have on any country’s
economy.PositiveeffectswhichGambling,andthereforPaddyPower,canhave onaneconomyisthat
it creates revenue.Currently,in all of the countrieswhere Paddy Power has located, there has been
an increase in economic Development, An increase in employment percentage and there has also
been quite a large increase in tax revenue. Although Paddy Power did lose out on Profits when the
Recession arose in certain parts of the world, E.G Ireland, they have made a huge increased
improvement in profits since 2015. Governments have no choice but to accept and welcome the
Gambling industry as it is an economic need and they need the extra revenue.
Paddy Power is based in countries where gambling is a legal pastime. The reason Ireland, England,
Australia,BulgariaandItalyhave chosentolegalizeGamblingistocreate alarge profitmarginfortheir
countries. Otherthanthe profitwhichcanbe made fromGambling,The numberof outletsownedby
Paddy Power across the world creates a large employment base.
However, Due to the fact that Gambling can become an addiction, the industry can also cost
Governments a large Sum of money in regards to crime, Social pathologies and social interruption.
These factorsshouldall be takenintoaccount,andneverundervalued,whenlookingatthe economic
damages caused by Paddy Power and the gambling industry.
ForPaddyPower,The legalityof Gamblingandtheincreasingwaysof accessingPaddyPoweraccounts
EG Throughthe webpage orMobile Apps,hasalsocreatedathreatforthe economyintermsof health
and social costs.
In England, The Gambling industry pays betting and gaming duties, which have previously reached a
total of £1.4 billion annually. The gambling industry in England are extremely proud to be able to
contribute that sum of money to the British Economy.
Social
The main social effects of gambling which may affect Paddy Powers external environment is the
outlookthatthe publichave onGambling.Society’sviewsonaddictionisamajor factor forgambling
as there is a small number of people for which gambling may become a huge problem for them .
However, the gambling Industry have 100% commitment to helping, protecting and decreasing
problemgamblers.Inthe UK,there isaprojectwherebythe GamblingIndustrycontributealarge sum

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of money to gambling related research and education. For example over 2012/2013, the gambling
industry in the UK contributed over £5 million through the responsible gambling trust.
Technological
In recentyearsthere hasbeenasignificantincrease inthe numberof peopleusingonlinebettingasa
hobby. Since 2008, online gambling has grown by an impressive 1386%. There competition in the
industry is quite fragmented for example there is Paddy Power, Betfair, Bet365 and Ladbrokes. The
public have great use of applications for example phone applicationsto downloadgambling apps or
bettinggames.Betfairhave foundthatoverone year,theyreceivedanincrease of 70% of users.This
accounts for 4% of the Revenue per year.The negative side of technology being used so intensely is
that of hackers were to take advantage of PaddyPowerswebsite,theycouldpotentiallygaina large
range of personal informationaboutthe customersatPaddyPower.Hackingcanbe done so easilyto
companiesespeciallyifentrybarriertosystemsare low oreasilyaccessible.Peopleare alsobeginning
to change their customer needs and find gambling from home or work easier and less hassle then
tryingtogetto an outlet.Withthe use of technology,Customerscantake advantage of onlinegaming
as well as gambling from home.
Industries andSectors
Inorder toanalyse the industriesandsectors,Ihave usedPortersFive forcesframework. Porter’s five
forcesisanimportantandsimple frameworkformanagerstouse tohelp themunderstandwherethe
power is in a significant business situationand the competitive strength the company has in their
current position. It also helps a manager understand the strength of the position the company is
moving into.

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The main competitors for Paddy Power would be
 Ladbrokes
 William Hill
 Bet365
 Boyle sports
Before the merger took place, Betfair would have been Paddy Powers main online competitors. By
merging with Betfair, Paddy Power has decreased its competition by a significant proportion. The
gamblingindustrybetweenIrelandandthe UK can be describedasOligopoly.Thismeans that there
are few firms in the industry that dominate. In the gambling industry the three most popular firms
would be Paddy Power, Betfair, William Hill and Bet365.

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The Threat of substitutes
Due to the fact that online betting is becoming increasingly popular, there is a strong threat
substitutes. This is due to the fact that it is extremely difficult to communicate and interact with
customerswhentheyare usingonlinewebsites,thereforebrandloyaltycouldbe hardtoachieve.The
lottocan be a majorthreatforgamblingoutletsaspeople prefertopurchase lotteryticketsinstead of
bettingonline orgoingthroughthe hassle of goingintoanoutlet.There isa majorincrease of people
buyinglotteryticketswhenthereisadraw whichhasa huge pay out.These drawstendtogetairtime
on the news and therefore attract customers.
Casinos are another alternative that people can use instead of betting games and gambling outlets.
Holidays are often planned basedon going to casinos EG Las Vegas where large sums of money can
be made.Oftenthese typesof holidaysinvolve manyweeksof savingthereforepeople sacrificegoing
to their local outlet, to save for a holiday.
The threat of new entrants
Threat of new entrants is just as strong as threat of substitutes due to the low entry barriers of the
gamblingindustry.Forexample,anentrepreneurwouldonlyneedasmall capital togainapositionin
the market.However,newentrantswouldmake little ornodifference toPaddyPowerbecause they
already have such a high and successful market share especially after merging with Betfair.
Bargaining power of suppliers
In this instance, the bargaining power of suppliers would be the power that the industries such as
sportsindustryandhorse racingindustryhave onthe gamblingindustry.The answertothiswouldbe
theyhave extremelyweakpoweroverthe gamblingindustry.The gamblingindustrydistributesalarge
quantityof resourcesbackintothesespecificindustries.The pokerindustryhasmoderatepowerover
the bettingindustryasinpokerthereisaslightabilitytobe able topromoteyourfavourablecompany
in the gambling industry.

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Bargaining power of buyers.
The customersof the firmsinthe gamblingindustryare the buyers.Theyhave moderatecontrol over
the firmsas theycan decide whatfirmstheyare going to use and therefore give theirmoneyto.The
factors which the customers take into consideration are
1) Best customer service
2) Minimum fees/costs
3) Confidence in the website and privacy of their personal information
4) Number of betting options e.g. online, in store, On your mobile
Competitors and Markets
Inthissection,Ifocusonthe strategicGroups,The strategicCustomersandthe marketsegments.The
firms within the strategic group of the gambling industry are companies which I have mentioned
before- Ladbrokes and Bet365. Before the merger, Betfair would have been Paddy Powers biggest
competitionasPaddyPowerandBetfairhave the mostincommon.Firmsinthisstrategicgrouphave
similar strategies, similar characteristics and compete on a similar bases.
Opportunitiesandthreats
Opportunities for Paddy Power has increased dramatically after the merge with Betfair. This merger
means less competition for the company and a larger market segment.
 There is a continuous growing demand for online betting and gambling which Paddy Power
are market leaders of. If they take advantage of this growing demand, a huge profit margin
could possibly be made/maintained at Paddy Power.
 The income forPaddyPowerisconstantlyflowingbecause itissucha popularcompany with
a successful brand name and marketing campaign.
 The merger means that Paddy Power are now enabledto access new customer networks in
whichtheywill be able to communicate andengage withcustomersto findout theirspecific
customer needs and try and fulfil them needs.
 The merger also means that Paddy Power can use Betfair betting license to globally expand
the company into foreign markets.
There are a small numberof threatswhicheffectPaddyPowersuchasissuesinvolvingbreakingdown
of technology, rising costs of raw materials and negative perception from the public.

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Breakingdownof Technology-Due tothe growingdemandforonline gambling,PaddyPowerhave to
be prepared forthe eventthattechnologybreaksdown.Anotherthreat,whicheffectedPaddyPower
in previousyears,isthe eventof a hackingscandal.In 2014, PaddyPowerrevealedtothe publicthat
they were a victim of an enormous cyber-attack effecting 649,055 of their customers in 2010. The
company told the public that, although no financial information was stolen, Names, Emails and
passwords of customers were all compromised. (Ltd, 2015)
Strategic Capability of Paddy Power
The Critical SuccessFactors
Critical success factors are those that are eitherof great value to the customeror add great value in
terms of cost.
Marketing online is the most effective and efficient way of promoting your company. As it is also
extremely cost friendly, many companies took advantage of online presence. With the increase of
social media and mobile phone usage over the past number of years, this method of doing business
proved to be a huge success for many companies.
PaddyPowerisone of the mostsuccessfulcompanies
for embracing the world of online marketing and
usingsocial networksandPhoneAppstoengagewith
customers. Their approach to digital technology and
digital marketingisareflectiononhowprofitable and
successful the company are today.
PaddyPowerbegantheironline adventure intheyear
of 2000. Annually, approximately three quarters of Paddy Powers profit comes from their online
presence.
Customersof PaddyPowerenjoyandappreciatethe chance tobe able tobetandplaye-gamesonline.
They are extremely well positioned in their online market, with leading penetration in mobile and
social media.
Creating this critical success factor for customers of Paddy Power was difficult to establish as it took a
lot of time and a lot of work from the employees at Paddy Power to build up the audience which the
company currently have. They changed their whole content strategy and from then, went from being an

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ordinary social network page to a successful, popular and most talked about pages on Facebook for
people between the age-bracket of 18-30 years.
The new strategy which Paddy Power now promoted on their Facebook page was fun and excitement.
They joked about the sporting news on that specific day as well as incorporating their own marketing
campaigns into their page. Before this, Engagement with public waspoor and the Facebookpage looked
empty. Status updates were left as the most recent update for weeks on end and they were heavily
focused on purely just promoting Paddy Power. The company offered very little for customers to be
excited about.
Methods like asking people to like and share posts on their Facebook page was a huge success for the
company establish when the post was accompanied by imagery. The engagement continued to increase
on a weekly basis. They company’s audience continued to extend which showed in their profits.
This digital presence was popular for an audience of 18-30 year olds. This age bracket was of great
importance to Paddy Power as this was the demographic that Paddy Power believed earned the most
disposable income. They are also the people that are the most digital savvy with the potential to grow
brand loyalty as they get older.
If Paddy Power aim to keep customers engaged with this critical success factor, it is vital that the
company keep up to date with answering comments and holding competitions in order to satisfy
customers and to show them that the company are paying attention.

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As a result of their witty Facebook comments and imagery uploads, Paddy Powers online venture
changed rapidly. Currently, the number of people who have liked the Paddy Power Facebook Page is
1,507,268. This is an amazingly impressive figure for any company. The large number means that there
is a high chance Paddy Power is appearing on a large number of newsfeeds.
Building Upon Its Success
Although Facebook is the most successful social media network for Paddy Power,Paddy Power also
has a strong online presence on the Social media Twitter site with over 576k followers on their main
Twitter page (which doesn’t include the side pages for poker , e-games etc.)
The Critical Success factors for Paddy Power are based on their online presence.
Resources and Competences
Resources
Resources can be tangible and intangible. Tangible resources are physical assets such as the land,
buildings, Plant, Labor and finance of Paddy Power. Intangible resources are non-physical assets such
as reputation and knowledge of Paddy Power.
Physical Resources for Paddy Power
The fixed assets (which include the property, plant and equipment) which are owned by the Paddy
Power and Betfair came to the value of €38,822,000 in the year ending in December 2015. The
machinery which Paddy Power use is up to date as they need to be constantly updating their presence
online. The machinery which they need to use has to be effective and efficient. As a result from the
recent merger, a head office for the combined companies will be created in both Ireland and England.
Betfair staffwho are currently working at the Betfairoffice in Ringsend are being relocated to the Paddy
Power offices in Clonskeagh.

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Human Resources for Paddy Power
It has recently been announced that Paddy Power are planning to cut down their workforce between
Ireland and England by letting go 650 of their employees. This decreasing of the work force has arisen
from the merge of Betfair and Paddy Power. The joint company believes the cut will help the combined
group make a saving of £52 million (€62 million). There is expected to be 350 job losses in the UK and
300 in Ireland. Due to office closures and relocations, some people’s position in the Paddy Power
company may change as a result of the merge. The transfer of roles for the Paddy Power Employees
will be an advantage to them and to the company. Human resources is one of the main areas which the
merger effects because of the lapse of people necessary to complete HR tasks.
(Wilson, 2016)
Intangible resources
This section involves the brand image and reputation of Paddy Power. I focused on how the
organisation is perceived by customers, Community and suppliers.
For some,Paddy Power canbe describedas a proxy for Ireland. People describe the company
as fun and entertaining. For customers of Paddy Power, They enjoy the adrenaline of
winning/betting on sports events or other betting chances for example, who will win the next
government election. The public in Ireland have extremely high disregard for the company of
Paddy Power, as do people in the UK.
The successful brand image and reputation of Paddy power has developed from a carefully
thought out business strategy, a perfectly cultivated brand tone of voice and high reputation
management engagement. (Tyrrell, 2014)
Competences
Competences are a linked setof skills, activities and resources that deliver high quality service
to customers and differentiate the business from its competitors. The main competence for
the company of Paddy Power is career motivation. Everyone who works at Paddy Power,
Wants to be there. Paddy Power is an extremely difficult company to try and find a job in as
there is such a high demand of people who want to work there. For this reason, Employees at
Paddy Power work to the best of their ability in order to ensure stability in the company.
Another core competence at Paddy Power is the marketing success which the company
achieves. Paddy Power is known for producing cheeky and controversial advertising

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campaigns in order to get into the public eye and gain attention from potential/current
customers. Some of the most controversial advertising campaigns that Paddy Power has
released are the following.
Distinctive Capabilities
PaddyPoweruse the strategicand dynamiccapabilitiesof the organisationinorder to contribute to
the long term survival of the company and to help with their competitive advantage. The dynamic
capabilities of Paddy Power are also changing constantly. For example, Paddy Power produce new
games on a monthly basis in order to keep their products up to date and to engage their customers
withnewerexcitingofferings.Also,BecausePaddyPowerProducenew AppsforAndroidsand IPhones
which match to their E-Games, customers feel more connected with the company. The specific
strategiccapabilitiesof PaddyPowerare the abilities of the employeestobe able toconnectwiththe
customer on a personal level. This involves helping the customer and providing knowledge so that
they use Paddy Powers service again or download The Paddy Power App.
Bench-Marking with Competitors
As bench marking is the ongoing structured process of identifying and understanding practices of
other industry leaders to help a company improve their performance level, it doesn’treallyapplyto
Paddy Power. Paddy Power is the head of the Gambling industry at the moment, especially after

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merging with Betfair. However, Merging with Betfair helped Paddy Power to improve their online
websitesandportalsas Betfairspecialisedinonline gambling.Othercompaniesuse PaddyPoweras
their benchmark because it is such a successful company.
Financial Reports
Excludingcustomerbalance of approximatelysixtythree millionpounds,The PaddyPowerCompany
have a Net Debt of approximately one hundred and forty six million pounds after the merger. This
figure includes fees and stamp duty in relation to the merger, dividends and payments of costs.
Strengths and Weaknesses of Paddy Power
Strengths
a. Paddy Power has extremely experienced business units.
b. High growth rate.
c. Afterthe Merger,PaddyPowerBetfairPLChave alargermarketingnetwork,awidercustomer
segment and a larger market share.
d. They have a strong online presence
e. Live betting options
f. Good strong Odds Quality
Weaknesses
Astheyare suchasuccessful company,there ishardlyanyweaknesseswhichcanbe definedforPaddy
PowerBetfairPlcatthe presenttime.Somemaysaythattheircheekyadvertisementmethodscanbe
a weakness for the company as they can sometimes receive a large scale of backlash, However as
mentioned later in the report, Paddy Power view any publicity as good publicity so they do not
consider this a weakness for their company.
Strategic Purpose
Values, Mission, Visonandstrategic Objectives
Strategic Objective
As Paddy Power has only recently merged with Betfair on the 2nd
of February 2016, they companies
are yet to produce a combined strategy which best describes this suits these merging companies.
However, in previous years, Paddy Power and Betfair have had similar business strategies.
Both companies:

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Focus on a regulated Market- Although the group are continuing to search for increased business on
both a business to customer and business to business level, They have successfully held onto their
market leader positions in The UK, Ireland , Australia and The USA. 94% of the group’s total revenue
has be gained in their regulated market.
Investment in Product- Innovation and Intuitive design with new products are the key features which
Paddy Power and Betfair use to acquire customers. Paddy Power and Betfair believe they are so
innovative with their products that it differentiates them from the rest of the businesses in the industry.
Due to the fact that both companies are extremely successfulon a global scale,they have the substantial
technology and product development resources that they need to create new products quickly and
efficiently. (Strategy, 2016)
Mission
PaddyPowersmissionaftermergingwithBetfairwastobecomejoinedmarketleadersof the industry
inIrelandandthe UK. The combinationof the twocompaniesconnectsthe fourleadingsportsbetting
brands in the world whom are Paddy Power, Betfair, Sports bet and TVG. By merging with Betfair,
PaddyPowerhave eliminatedone of theirmaincompetitors.This wasanextremelywell thoughtout
strategic move.
Vision
The visionforthe future of PaddyPoweristotake advantage of the growinggamblingindustryandto
expand the business into a wider global market. Paddy Power will use their strong advertising
campaignstogenerate awiderconsumerbase.Expandingtoalargervarietyof countriescanbe arisk,
butwiththe successof PaddyPowersonlinewebsite,andnow withBetfair, bettingservicesandphone
apps, it could be a cost effective risk and an advantage for the company.

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Purpose
Paddy Power, The fourth Generation stated at a networking meeting in 2015
“Our brand purpose is to create
the most engaging, entertaining
betting experience helping
punterslive on the wild side of life
while our brand personality is
edgy, original and witty,”
(Masterson and Profile, 2016)
Corporate Governance and Governance Structure
CorporateGovernance
Corporate Governance describes the structures and systems of control that managers are held
accountable to those who have a stake in the organisation. The people,electedby the board, to
manage the daytoday businessof PaddyPoweristhe ChiefExecutiveManagersof the company.This
involvesBreon Corcoran, Alex Gersh and Andy McCue for Paddy Power. The board hold a variety of
standardboard meetings eachyear.Onaverage,there are approximately8standardboard meetings
a year.However,in2015withthe merge of PaddyPowerandBetfair,therewaseighteenfullmeetings
of the board. The board of directors at Paddy Power has established four differentcommittees. The
functions of each other the individual committees vary depending on their responsibilities.
The committees established were as follows:
-The Audit Committee -The Nomination Committee
-The Remuneration Committee -The Newly constituted risk
Committee
The audit committee are responsible for the financial integrity of the Paddy Power company. They
ensure the internal financial reportsandfinancial riskmanagementsystems are working efficiently.

20
The remuneration committee are responsible for making recommendations to the board on the
remuneration of the company. The executive directors and senior executives take this information
and update their remuneration policy.
It’sthe responsibilityof the nominationcommitteetorecommendpeople tothe boardof whomthey
thinkshouldbe electedasnewdirectors/Executives. Theyalsoparticipate inthe successionplansfor
directorsandseniorexecutives. Otherfunctionsof the nominationcommitteeincludesreviewingthe
current composition of the company and purposing any changes they see necessary.
The risk committee was established as a result of the recent merger. There is a number of functions
which the risk committee will be responsible for. These functions include
1. Review the reputational impact of the group’s activities
2. Review and update the group’s bookmaking risk policies
3. They will then approve limits in relation to the risk policies
The board of directors also have the overall responsibilities of the system of internal control of the
company. They have delegatedthe responsibilities of the implementation of this system. Theyhave
also set out a code of compliance which should be adhered to when maintaining and reviewing this
system.
Governance Structure
The structure of the Board is reviewed on a regular basis at Paddy Power.It consists of a number of
differentdirectorswitharange of backgroundexperiences.Forexample,someof thepastexperiences
of the directors include financing, leadership, management control and mainly directors from the
betting background.

21
The chairman of the board Gary McGann was appointed on the 1 July 2015 after the resignation of
the formerChairman,Nigel Northridge. The Chief Executive officerandthe Chairpersonof the board
are twocompletelyseparatepeople withtheirownsetof functionsandresponsibilities. Asaresultof
the merger, Breon Corcoran was appointed Chief Executive Officer on the 2 February 2016.
The board currentlyincludesthree executive directors,One Independentnon-executive directorand
eightindependentnon-executive directors.The nominationcommittee foundthathavinga board of
12 directors at the Paddy Power Company suited the businesses need for the sufficient skills and
expertise necessary.
Business Ethics andCultural Context
Paddy Powers approach to Corporate Social Responsibility is to ensure that their current customers
gamble in a responsible manner. Paddy Power have established many initiatives and schemes
throughoutthe yearsto try andpromote responsible gambling.Theycontributehuge sumsof money
on an annual basis to charities and organisations related to Paddy Power.
In 2015, Paddy Power donated €733,000 to charities around the world. In addition to this, the
employeesof PaddyPowerraisedfundsof over€185,000 for the Paddy Powersnominatedcharities
of the year Special Olympics Ireland and Special Olympics Great Britain.
Some of the Paddy Power initiatives are as follows
 Senat Group-Launched in 2014, The Senat group was established to promote responsible
gambling. The idea behind the group was to help raise awareness of responsible gambling.
The group provides information on the risk of Gambling and how to stay in control of
gambling. The advertising costs for this group are estimated at approximately £7.9 million
since the launchbetweenradio/televisioncampaignsandover6500postersinshopwindows.
 Sports for all- The motto used at the Paddy Power Headquarters is “Leave no one behind”.
Paddy power held many events in order to raise money for the special Olympic charity
partners.These eventsincludedfootball tournaments,walkingoverhotcoals,PaddyPowers
mini special Olympic and many more fun but beneficial activities
 Adult Enterprise Programme- The aim of this programme is to promote entrepreneurship in
disadvantaged areas. Paddy Power invested over £38,000 in 2015 to this programme.
However,AlthoughPaddyPowerhavecontributedlarge sumsof moneytoCharitiesandorganisations
to promote responsible gambling,there hasbeensome instancesof unethical behaviourfromPaddy
Power.Thisbehaviourismainlyrelatedtotheiradvertising.Forexample,PaddyPowerhadextremely

22
bad publicity in relation to the Oscar Pistoriuscase. Many people believed it was highly immoral for
PaddyPowertobe makingmoneyof amurdertrial,However,PaddyPowerdefendedthemselveswith
a statement in the Independent on the 03/03/2104 stating
“This is the biggest profile trial that has ever been. It’s the only topic of conversation around
the world.”
“It’s to provide customers with the opportunity to bet on something that everyone is talking
to.”
(Jivanda, 2016)
Strategic Choices
Corporate strategy and Diversification
Product/ Market Diversity
Paddy Power have a range of different products/services which they offer to customers in an attempt to
gain a higher market share and to cater for the specific needs for the majority of their customers. In
addition to the gambling services which Paddy Power offer at their retail outlets, Paddy Power also
offer technological games through phone apps and board games for fun.
The diversity of the games which Paddy Power offer are as follows
-Roulette -Black Jack - Virtual Games
-Card and Table Games -Video Poker -Tv Games
-Slots -Deal or No Deal - Arcade games
Games in the retail outlets
Paddy Power aims at a mixed Variety of customers. Some Customers of Paddy Power enjoy betting as
a social hobby and do it for fun. Some become addicted and they feel they need to participate in a
gambling activity.

23
As well as being interested in gaming and gambling, a majority of Paddy Power’s market segment are
interested in sports and my bet on teams/people in sporting activities. The most popular sports which
gamblers enjoy betting on are
G.A.A Golf Tennis Darts
Soccer Horse Racing MMA/Wrestling
Rugby Darts Cricket
There is also a strong increase of gambling coming up to Christmas with Reality TV shows such as The
X Factor,I’m a celebrity get me out of here,Britain’s got talent and Celebrity Big Brother.People enjoy
to bet on who they think will win the contest.
Paddy Power are innovative and create different betting competitions depending on what is popular at
the time. For example, for elections they put on a poll for people to place bets on.
For this reason, Paddy Power appeal to a wide range of customers in their huge market base.
DirectionandMethodsof Development
Annsoff Matrix and Paddy Power

24
In ordertoanalyse the differentstrategicdirectionsof PaddyPower,Ifocusedonthe AnnsoffMatrix.
Thismatrix isa strategicplanningtool whichcompaniesuse tohelpexecutives,seniormanagers,and
markers establish what needs to be done to improve the future growth of the company. (Annsoff
Matrix, 2016). As one of the rationales for the Paddy Power and Betfair merger was to create a
“stronger combined group with market-leading talent, technology and operations”, (Home, 2016) I
feel it is appropriate to classify Paddy Powers current strategy under group A and Group B
Market Penetration
Thisstrategyfocusesonincreasingthemarketsharewithinthe currentmarketusingcurrentofferings.
As mentioned before, Paddy Power are holders of one of the highest market sharesin the industry,
and theyaim maintaintheirpositioninthe marketina numberof ways. Since PaddyPowerwasfirst
established in 1988, the main service which the company offers is a fun and entertaining betting
experience.AlthoughPaddyPowerhasproducedmany new waysof gamblingthroughoutthe years,
Paddy Power’s outlets have been running since the establishment of the company.
New Product and Service Development
This strategy involves delivering new products or services to the existing markets. In order to be
successful with this strategy, Paddy Power needs to understand their changing customer needs.As
I’ve mentioned before, in previous years Paddy Power have continued to release new modes of

25
gamblingbasedontheircustomerneedsandnew technologies.Withtheirproductionof theironline
webpage and e-gaming services, PaddyPower have continued to engage with their market segment
throughout the years which has helped them to maintain their high market share.
Market Development
Thisisthe strategythatinvolvesGlobal MarketShare,Global strategicmarketandGlobalBalance.The
recentmergerwill be a huge advantage of thisstrategyas Betfairhave a presence in not onlythe UK
and Ireland but in Australia. Betfair have a license to operate in a range of other countries such as
Malta, Spain,Italy,The USA,DenmarkandBulgariasothe recentmergercouldbe a huge opportunity
for Paddy Power to take advantage of the global market.
Methods of Strategy Development - Mergers, acquisitionsandalliances
Over the years, Paddy Power has been involved in three main Acquisitions and mergers. The main
mergerswhichtook place was the merge of the fortyretail outlet,thatestablishedthe PaddyPower
Company and the recent Betfair and Paddy Power merge. The main Acquisition which occurred in
Paddy Power was the McGranghan Merger.
The firstmergerof Paddy Poweroccurredwhenthe companywas establishedin1988. The strategic
motivesbehindthismergerwastogainawidercustomersegmentbase andtoeliminate competition.
The combination of the 40 retail outlets encouraged increased innovation of new products and
services for the Paddy Power company. There was also financial motives for this merger such as
improved financial efficiency. Combining the retail outlets, and rebranding them under the same
name, improved the global impact of the company.
McGranaghan Racing Acquisition
In2008, PaddyPowertookoverthe ownershipof the NorthernIrishCompany‘McGranaghanRacing’.
McGranaghan Racing was a leading independent bookmaker whom were based in Belfast. This
acquisition meant that Paddy Powers 241 Licensed betting Offices between Ireland and the UK was
going to be increased with a further eight licensed betting offices.

26
McGranaghan Racing Companywas foundedin1952 and contained50 employeesatthe time of the
takeover.PaddyPowerretainedall of the 50 staff membersfromthe company.Thinglocationof the
Licensing betting offices are as follows:
1. 3 in Belfast City Centre
2. 3 in West Belfast
3. 2 in Belfast Suburbs
The consideration paid to McGranaghan for the takeover was £19 million.
CEO of Paddy Power at the time of the acquisition, Patrick Kennedy, Stated
“McGranaghan has a similar business model to our own, employing a very competitive offering to
drive veryhighshopturnoverandprofitability.Acquisitionisthe necessaryroute intothisinteresting
marketand McGranaghan is an ideal entrypointforPaddyPower.The estate hasanattractive mix of
different locations and like Paddy Power is a punter focused business which promotes a very
competitiveandattractive offeringthatwilldrivebothfootfallinourshopsandincreasedprofitability
throughout our company”. (Plc et al., no date)
Kennedybelievedthatthe companyhadalreadygainedprofitandsuccess inNorthernIrelandthrough
use of intangibleservicessuchasonlinebettingandphoneservices.He explainedhow havingtangible
features in Belfast, such as an outlet and offices, would make a huge difference to the company’s
market share. This was a huge opportunity for Paddy Power to introduce products and services to
NorthernIreland.The companyinvestedasignificantsevenfigure sumintothisacquisitionbyrefitting
the outlets with all the trading used under the Paddy Power brand name.

27
The advantages for Paddy Power for this Acquisition was as follows
I. ItenabledPaddyPowertomove rapidlyintonew marketswithoutmuchmarketingnecessary.
II. By doing so, it extended to a new geographical area
III. McGranaghan Racing has underused resources that needed to be resold. By making this
purchase, Paddy Power extended their market size and their market share.
Paddy Power and Betfair Merger
The most recentstrategicdecisionforPaddyPowerwastomerge withcompetitorcompany‘Betfair’.
The rationale behind this merger was
 The merger of the two companies wouldproduce a stronger combinedgroup. The financial
motive of the merger was to create greater scale leads to higher return on investment. The
strategic motive for the merger was to combine the two industry leading groups. The
combined companies together provided a significant strength in capabilities and talent. The
two companies produce extremely strong and distinctive brand imagesso the merge will be
of great benefit.
 The merger established significant cost synergies
Approximate £50 annualisedona pre-tax basis.The complete benefitof the synergieswhich
were causedby the merge are to be achievedafterthree years.The Integrationprinciplesof
the merge meant shared technology, operations and corporation function.
 Combined brands, capabilities, channels and geographic mixes meant a stronger company
with a larger market share
Pooled capabilities and talents can help both companies in terms of Product Development,
Risk and Trading, Online Marketing, Social Media and customer operations.
 The greater scale drives growth for the company
The merger also gave the combined company a high cash generative and a strong balance
sheet.
Although the companies of Paddy Power and Betfair create successful synergy, There is very little
diversificationcreatedfromthe merger.The strategieswhichPaddyPowercurrentlypossess are built
onto their current products/ Services and aimed directly at Paddy Powers current customers.
Inorderto analyse the differentstrategiesof PaddyPower,Ifocusedonthe AnnsoffMatrix.Thistable
is a strategic planning tool which companies use to help executives, senior managers, and markers

28
establish what needs to be done to improve the future growth of the company. (Annsoff Matrix,
2016). As one of the rationales for the Paddy Power and Betfair merger was to create a “stronger
combined group with market-leading talent, technology and operations”, (Home, 2016) I feel it is
appropriate to classify Paddy Powers current strategy under group A and Group B( See highlighted
below).
Asyoucan see inthe above table,Businessesingroup‘A’implementa“MarketPenetration”Strategy.
Businesseswhoare classifiedunderthissectiontrytogrow theircompanybyusingexistingofferings
to their current customer base. The larger the market share, the bigger the impact this strategywill
have on businesses who choose to use it. The two ways in which this can be achieved is by
1- Selling more products to current customers
2- Gaining a larger customer base within the current market segment.
The merger of Paddy Power and Betfair established a wider consumer base for both companies, as
they are were both singularlytwo of the fastest growing internet betting operators in the world.By
mergingthe companies,ithasallowedPaddyPowertofocusonawidermarketshare.One of the key
approaches for Paddy Power when dealing with this section is to maintain the market share of its
current services/products. They do this by putting huge emphasis on their advertising, which as
discussed,PaddyPowerhave proventoexcelin.AnotherwayinwhichPaddyPowerengage withthis
particularstrategyis byinfluencingcustomerstouse the service more frequently.PaddyPowerhave
done this by introducing Mobile Phone Apps and Internet betting. (Reserved, 2015) However,
Consolidationisalsoahuge factorwhenimplantingthe MarketPenetrationStrategyinanycompany.
Implementing the group ‘B’ Strategy is another strategy which Paddy Power use effectively in their
company.The newproductand Service Developmentstrategyisbasedonthe theorythatacompany
attempts to gain profits and growth by creating new products and services for existing customers.
As you will have noticed after reading the history of Paddy Power, The Company establish new
products and services in an attempt to engage with their customers on a regular basis. The variance
of products/services available by Paddy Power plays a huge roll in the success of the company.
Success Criteria
WhenPaddyPower(Thefourthgeneration) attendedaNetworkingeventinLimerickof October2015,
He admittedthat“Engagingwithcustomers”wasthe mainfactorwhichcausesthe companyto be so
successful. He explainedtothe attendeesof the meetingthatthe methodPaddyPowerengage with
the publicthe most is throughadvertisement.He describedthe advertisingthatPaddyPowercarries

29
out as ‘Mischief’. He explained how ‘Mischief’ has such a vital role in their advertising that the
company has employed someone to fill the position of “head of mischief”.
At the same meeting,PaddyPowerrecalledsome of the advertisingstuntswhichledtothe publicity
of PaddyPowerworldwide.Some of the advertisingstuntswhichhe rememberedwasturningupto
the Brit awards dressed as daft Punk and revealingthe Paddy Power pants on the red carpet. Paddy
Powerexplained that these types of “Stunts” committed by Paddy Power took over a year to plan.

30
International Strategy
PaddyPowerare an International
company whom operate retail
outlets in Ireland and the UK.
They also operate websites in
Ireland, The UK, Australia and
Italy. They are in possession of a
games development business in
Bulgaria.
Reasons for Australian Expansion
Afterthe purchase of Sportsbet byPaddyPowerin2009, the twocompaniescontinuedtheirsuccess
due to the similar values. While employing 470 employees across Australia and remaining market
leadersince PaddyPowerboughtoverthe company,Sportsbethavecontinuedtobe innovationinthe
production of new products. Sportsbet were the first company to introduce products such as Top
Tote Plus and Protest pay out to the Australian market. Sportsbet and Paddy Power are similar in a
marketingsense astheybothenjoymischief marketing. Thisishow PaddyPowerpredictedthatthis
strategic purchase would be successful.
Reasons for Italian Expansion
As PaddyPowerare alwayslookingtoexpandandgrow the companyintobiggermarkets,Italywasa
majorly attractive market to Paddy Power as they have the biggest gambling market in the world.
Theyenteredthe onlineItalianmarketin2012 anddisplayedtheirprofessionalismwhichtheygained
in Australia, Ireland the UK. The response to Paddy Power in Italy was ecstatic, which led to the
introductionof thesecondonlineproduct,Casino.ForeachgamewhichPaddyPowerproducesonline,
they produce a phone app on IPhone or Android to match the game.
Reasons for the Bulgarian Expansion
Paddy Powerworkcloselywiththe employeesatthe BulgariancompanyCayetano.AfterPaddyPower
Acquired the company in 2011, they have continued to produce new games and technologies for
PaddyPower.PaddyPowerusedthe BulgarianExpansionasawayto exploitthe strategiccapabilities
of the technological industry in Bulgaria.

31
The PaddyPowerBetfairPlc. formedas a resultof the mergerhas become marketleaderin all of its
operating countries, except for Bulgaria. The company also has strong business to business and
business to customer relationships around the world.
Business Level Strategy
Forces InfluencingBusinessStrategy
Resource Allocatingisoneof the useful dimensionsof decisionmakingincorporate strategy.The main
resource allocatingtool whichIfocusoninrelationtoPaddyPoweris‘The BostonConsultingGroup’s
GrowthShare Matrix.Thismodel isbasedonthe theorythatbusinessunitscanbe classifiedintofour
differentcategories,whichare Stars,Cash cows, QuestionMarks and Dogs. The differentgroupsare
categorisedinaccordance totheirgrowthrate andMarketshare.Ibelieve thePhoneAppsandEgame
productsare strong businessunitsforPaddyPower.The reasonIbelieve theseare forcesinfluencing
business strategy is because they have their own competitors and they are a profit centre for the
PaddyPowerBetfairPlc.Forexample,there are manyphone appsoutwhomcompetewiththePaddy
Powerphone App.Someone the maincompetitorswouldbe LadbrokesphoneAppandNetBet App.
I think Paddy Powers E-gaming and App units can be classified as stars. The reason I believe thisis
because Paddy Power are market leader so their products are extremely popular with high growth
rate and Highmarketshare. Theyaccountforover45% of the firm’sprofitsbuttheydo(especiallythe
e-gamingproducts,astheyare technological)require large capitalexpenditure.I thinktheyare funded
greatly by the cash cows that are the retail outlets of Paddy Power.

32
Bases of competitive Advantage
PaddyPowerbase theircompetitive advantage ontheirmarketposition.Astheyare current market
leaderstheyhave ahuge advantage overotherfirmsinthe industry.InItaly,bythe endof 2015, they
launched 5 new mobile games. As Italy has one of the highest level of smartphone and tablet
interaction in the world, this was a huge competitive advantage for Paddy Power.
Paddy Power thrive in becoming leaders for customer care and responsible gambling. Due to their
committed employees, Paddy Power have already proved themselves to be a strong and reliable
operator in all of the countries which they operate in.
Since PaddyPowerwas established,theyhave beenleadersof the industryinterms of Social Media,
UpdatedwithtechnologiessuchasAppsandSmartphones,andtheypredictedtheincrease ofdemand
in online Gambling. The reason for which Paddy Power believe they have a competitive advantage
over others is because they put peoples demand for entertainment first.

33
Sustaining Competitive Advantage
Paddy Power aim to keep the high standards of their company by maintaining their retail outletsto
make them feel new and trendy. Instead of the common look of a bookies, which is grotty and dull,
Paddy Powers has ensured each of their retail outlets are bright and clean. They want to provide
excitingandsocial ablelocationswhere bypeoplecangoandenjoytheirtime.Theyhaveprofessional
staff with extreme knowledge in gambling working at all times to ensure high quality customer
satisfaction. The number of active online customers in the UK alone for Paddy Power increased by
76% between the years of 2009 to 2014.
PaddyPowerrelease new productsonamonthlybasis tokeeptheircurrentcustomerssatisfied.One
of the most essential factors which Paddy Power include in all of their new products is that they are
focused on convenience and content.
PaddyPowersbrandimage isahuge considerationinsustainingcompetitiveAdvantage.PaddyPower
Like to listentotheircustomersand theyalso like theirlistenerstofeel heard.The companymake it
their mission to take on board any criticism or advice which they received from the publ ic and
integrate the informationintotheirbusinessstrategy.Onaverage,everymale adultbetweenthe UK
and Ireland whom own a Facebook account, have at least one Paddy Power account.

34
Strategyin Action
Structure
The different sections of the Paddy Power company include
Marketing and Analysis section

35
The marketing team, Their Advertisements and their taglines are the forces behind the success of
Paddy Power. As mentioned earlier in the report, they use mischief in their methods of advertising
and theyare not afraidto cause a reaction(goodorbad).Theybelieve anypublicityisgoodpublicity.
Within the marketing section of the company there are three sub-groups.These sub groups include
the brand team, The Online Marketing Group and The Business Analytical Team.
Risk Section
This section are responsible for listening to customer research and the checking the profitability
modellingof the company.Theyalsochew upbehavioural analyticsandmarket/competitoranalysis.
Theyuse theirindividual skillslikenumerical ortechnological totackle foreseeableproblemsthatmay
arise. They tackle questions such as how is the industry evolving and what can Paddy Power do in
ordertokeepupwiththe restof the Industry.The subgroupsinthissectionincludeTrading,Research
Analytics, Sports and Racing sections. (Risk, 2016)
Product and Technology
In this department of Paddy Power, They tackle the most complex B2B and B2C technological
problems within the company. This section involves innovation and imagination if necessary. If
innovation involves the production of a new product then it’s important this strategic process is
carried out. They are the ones to deal with the game operators in the world. There is only one sub
groupinthissection anditiscalledCPO.The CPOismade upof 450people fromall overthe countries
where Paddy Power Operate.
Retail
This is the section which most people will be familiar with. Paddy Power believes the employees in
their retail stores are more professional and more knowledgeable then employees in other retail
outlets.PaddyPoweremployeesstaff whowill workeffective andefficiently.Thismeansworkingat
a fastpace to deliverthe bestbutalso the quickestpossible service tocustomers. The subgroups in
this section are shop manager, Deputy/Assistant Manager/Cashier or sales assistant.
Sports
Paddypowerdescribesthissectionof theircompanyasa machine.Employeesinthissectionworkso
hard and so closelytogetherthattheyreplicate a machine. Thissectionwas establishedtogather a
groupof employeeswiththe bestproduct,marketandcommercial mindsinordertocreate a perfect

36
product for customers at a fair price. The sub groups in this section are the commercial section and
the product Section.
E-Gaming
This sectionisdescribedas beingthe most funsectionat PaddyPower.This sectionare in charge of
producing and testing the games which Paddy
Power put on offer. The sub groups in this section
are organised by delegating who tests what game.
The sub groups are games, Poker, Bingo, Live
Casino, Casino, High value and awards.
Business support
This section involves all the departments which is necessary in a business to keep the company
running. They include The HR, Finance Section, Property, Legal, Audit and Compliance, Commercial,
insights and corporate affairs.
Customer Operations
The people inthissectionare the peoplewhodeal withthecustomerservicesof PaddyPowerwhether
it’sonline oroverthe phone.Itisimportantforthe employeesinthissectiontobe courteous,Helpful
and polite while on the phone to customers. The subgroups in this section include responsible
gambling, Operational Success, Customer Support, Customer Security Investigations, Customer
Payments, Customer Accounts and Dial-A-Bet.
EnablingSuccess
Managing people/Information/Finance and Technology
The board of directors comprises of the following
Chairman- Gary McGann
CEO- Breon Corcoran
Chief Operating Officer- Andy McCue
Chief Financial Officer-Alex Gersh
8 non-executive Directors (4 from Betfair, 4 from Paddy Power)

37
PaddyPowercurrentlyemployeesover7000 employeesglobally,betweenBetfairandPaddyPower.
Conclusion
My aimfor thisreportwasto carry out an expectationof anIrishCompany whomislistedonthe
Dublin/UKstockExchange.The company,whichIclearlybasedthisreporton,wasPaddyPower.
The structure of thisreport was to include
PaddyPowersstrategicPositionandPaddyPowersCorporate-level/InternationalStrategy,Business
Strategyand Methodsof Development.
PaddyPowerandBetfairproclaimedafterthe mergerthat

38
“We putour puntersfirstand nofuture istoo brightfor them.Together,we are leadingthe wayin
definingwhata21st
century bookmakershouldbe-andbringalittle bitof mischief withusalongthe
way” (InvestorLinks,2016)
Throughoutthisreport,the mainissueswhichrepeatedly appears isthe marketingmethodsof
PaddyPowerandthe effectsof the mostrecentMergerof PaddyPowerwithBetfair.
The PaddyPowercompany enjoygainingprofitsandpublicityfromtheirmarketingadvertisements
and campaigns.These campaignsare knowntobe extremelycheekyandinsome cases,offensive,to
people inthe public.PaddyPowerenjoyscausingpublicdisagreementsanddebatesthroughtheir
advertisingasall publicitytheyreceive isgoodpublicity.Forexample,TheirOscarPistorius
advertisingcampaignwhichwasmentionedinthisreportcause majorpublicuproaras people
describedPaddyPowerasbeingdistasteful anddisrespectful.
Aftercompletingthisreportandthe analysisof the company,Ihave learnedthatPaddyPower
Participatesinthistype of aggressive marketingbecausetheygainmore profitsfrombeinginthe
publiceye.Theyare alsoan extremely successful companyintermsof theirSWOTandPESTAL that
negative presswillnothave anysignificanteffectontheirmarketshare.
The recentmergerwithBetfairwasa highlysuccessfulandcleverstrategicmove carriedoutbyboth
companies.
Betfairisthe world’slargestinternetbettingsite. PaddyPowerisone of the mostsuccessful Irish
bookmakers.Before the merge,theywere one of the leadersintheirindustry.Now,Because of the
merger,PaddyPowerBetfairPlcare marketleaderswith the largestmarketshare inthe industry.
Aftercompletingthe reportandstudyingvariouselementsof PaddyPowersuchasthe PESTAL
Analysisandthe strengthsandweaknessessince the Merger,IbelievePaddyPowerare goingto
continue tobe a successful companyandgainlarge profitmargins.Theyare constantlyproducing
largervarietiesof technical productsinordertosatisfycustomersaswell asoperatingtheiroutlets
so I believe theyhave the essential resourcestoremainmarketleaderof the Industryforthe
foreseeable future.
If I wasto redothisReportagain,I wouldensure toorganise mytime more effectivelyasIfoundit
hard to stickto my original schedule andasa result,Ididnot finishthe reportonmy predicted
finishingdate.I finishedaweeklaterthenIhad originallyplanned.
References
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topics/paddy-power/ (Accessed: 28 April 2016).
Mulligan, J. (2016) Paddy power slammed for encouraging gambling addict to visit outlet
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for-encouraging-gambling-addict-to-visit-outlet-more-often-34498609.html (Accessed: 28
April 2016).

39
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clears-final-hurdle-1.2498353 (Accessed: 28 April 2016).
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41

42
Declaration of Plagiarism
I declare thatthe Work I am submittingforassessmentbythe Instituteexaminerisentirelymyown
work,exceptwhere the authororsource has beendulyreferencedandattributed.
I confirmthat thismaterial hasnotbeenpreviouslysubmittedfora degree oranyother qualification
at ITB or anyotherinstitution.
I furtherconfirmthatI have read andunderstandthe Institute policyonplagiarisminassignments
and examinations(3ASO8.doc) andthatI am not,so far as I am aware,in breach of any of these
regulations.
Signed StudentID
Sarah Fay B00061143
Course Module
Honoursdegree General Business StrategicManagement
Date
27/04/2016

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