Expansion Study of growing markets in Europe Strategic options for Betsafe
(2010) MIO920Production Management
- Abstract
- Betsafe is still a young company that have seen a great success in a short span of time. To remain successful it is therefore important that they don’t become complacent and remain visionary. However, a successful company must also balance its risk‐taking. In the end it is vital to find the right opportunities that fits the company and of course to be able to make the right decisions.
In this project the main objectives were to put forward and present suggestions for new markets within a set of already established choices and to recommend strategic paths for Betsafe to take. To look towards new markets is often a logical step when a company wants to grow and develop. What is important to take into consideration are the different... (More) - Betsafe is still a young company that have seen a great success in a short span of time. To remain successful it is therefore important that they don’t become complacent and remain visionary. However, a successful company must also balance its risk‐taking. In the end it is vital to find the right opportunities that fits the company and of course to be able to make the right decisions.
In this project the main objectives were to put forward and present suggestions for new markets within a set of already established choices and to recommend strategic paths for Betsafe to take. To look towards new markets is often a logical step when a company wants to grow and develop. What is important to take into consideration are the different circumstances that figures in deciding where, how and when an expansion should take place.
The results from the study show there are mainly two different expansion options for Betsafe. One option involves a further expansion into the Baltic region. This path would be the natural step for the company with business already running in Latvia. The most suitable choice for Betsafe would be Estonia that proved to hold the best market conditions. The second option is much more risky and represents an expansion into a lucrative but relatively unknown and complex market, the Greek.
My final recommendation for Betsafe is that the company continues in the present to focus on its existing markets and the marketing drives there. Even if 2009 has been financially a successful year and there are attractive opportunities for an expansion, it has also meant great changes for Betsafe.
The company’s strategic direction has taken on a new turn – creativity. This has lead to an organizational change with new business areas such as social media. This new philosophy will take time to set within the company and it will take time to be able to take advantage of it. The change has also lead to an internal growth with much new recruitment. The marketing drive is still in an early stage and the turbulence caused by the defection from the Bulgarian market is still not yet fully over or evaluated. At the same time the beginning of 2010 offers big sporting events like for example the Winter Olympics. Betsafe is simply already involved or will be involved in projects that the company must focus on before they can take on new propositions. The legal situation in Europe is constantly changing along with its market conditions. To wait and find out what the outcome of some of these legal processes or changes will be before making a decision is important to not end up in the middle of adverse business conditions.
That said I do believe that the company must sooner or later find new markets so as to continue to grow, spread their overall market risks and to not trail too far behind the competition. Betsafe should in the near future keep a close eye on the Baltic market and expand the analysis before an eventual investment. There are still many questions that remain unclear. What will be the actual consequences of the new law in Estonia, which will take effect in 2010? Can we amongst all the names presented in this study find a country manager who can fulfil all the critical demands or do we have to search for other names? What possibilities are there of creating in advance favourable media deals, so as to facilitate the marketing and so on? Betsafe should during 2010 try to answer these questions. It is important that the Bulgarian failure does not happen again and that the next expansion becomes a success. In conclusion even if Estonia is the country where an expansion should take place Betsafe’s focus is currently needed elsewhere. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1977174
- author
- Tebelius, Martin
- supervisor
- organization
- course
- MIO920
- year
- 2010
- type
- M1 - University Diploma
- subject
- other publication id
- 10/5359
- language
- English
- id
- 1977174
- date added to LUP
- 2011-06-16 16:10:32
- date last changed
- 2011-06-20 12:36:20
@misc{1977174,
abstract = {{Betsafe is still a young company that have seen a great success in a short span of time. To remain successful it is therefore important that they don’t become complacent and remain visionary. However, a successful company must also balance its risk‐taking. In the end it is vital to find the right opportunities that fits the company and of course to be able to make the right decisions.
In this project the main objectives were to put forward and present suggestions for new markets within a set of already established choices and to recommend strategic paths for Betsafe to take. To look towards new markets is often a logical step when a company wants to grow and develop. What is important to take into consideration are the different circumstances that figures in deciding where, how and when an expansion should take place.
The results from the study show there are mainly two different expansion options for Betsafe. One option involves a further expansion into the Baltic region. This path would be the natural step for the company with business already running in Latvia. The most suitable choice for Betsafe would be Estonia that proved to hold the best market conditions. The second option is much more risky and represents an expansion into a lucrative but relatively unknown and complex market, the Greek.
My final recommendation for Betsafe is that the company continues in the present to focus on its existing markets and the marketing drives there. Even if 2009 has been financially a successful year and there are attractive opportunities for an expansion, it has also meant great changes for Betsafe.
The company’s strategic direction has taken on a new turn – creativity. This has lead to an organizational change with new business areas such as social media. This new philosophy will take time to set within the company and it will take time to be able to take advantage of it. The change has also lead to an internal growth with much new recruitment. The marketing drive is still in an early stage and the turbulence caused by the defection from the Bulgarian market is still not yet fully over or evaluated. At the same time the beginning of 2010 offers big sporting events like for example the Winter Olympics. Betsafe is simply already involved or will be involved in projects that the company must focus on before they can take on new propositions. The legal situation in Europe is constantly changing along with its market conditions. To wait and find out what the outcome of some of these legal processes or changes will be before making a decision is important to not end up in the middle of adverse business conditions.
That said I do believe that the company must sooner or later find new markets so as to continue to grow, spread their overall market risks and to not trail too far behind the competition. Betsafe should in the near future keep a close eye on the Baltic market and expand the analysis before an eventual investment. There are still many questions that remain unclear. What will be the actual consequences of the new law in Estonia, which will take effect in 2010? Can we amongst all the names presented in this study find a country manager who can fulfil all the critical demands or do we have to search for other names? What possibilities are there of creating in advance favourable media deals, so as to facilitate the marketing and so on? Betsafe should during 2010 try to answer these questions. It is important that the Bulgarian failure does not happen again and that the next expansion becomes a success. In conclusion even if Estonia is the country where an expansion should take place Betsafe’s focus is currently needed elsewhere.}},
author = {{Tebelius, Martin}},
language = {{eng}},
note = {{Student Paper}},
title = {{Expansion Study of growing markets in Europe Strategic options for Betsafe}},
year = {{2010}},
}