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Competitive Strategy

Page history last edited by Adam Steinberg 10 years, 8 months ago

 

How to differentiate? 

 

 

The online gambling industry is highly competitive.  Startup costs are low, the market is broad.  It's hard to differentiate one gambling site from another.  Poker's poker, right? 

 

This is not necessarily the case.  Online casinos go to great lengths to differentiate themselves from one another.  Some examples of this are as follows:

 

  • offering bonuses (bodog, for example, offers a number of cash incentives to repeat play and refer players
  • offering a wider variety of services (casino, sports house, bingo, poker, horse racing, etc..).  Bodog even has its own customer support team.
  • Have a good brand name (one gambling house can be known for its security, another can be known for its intuitive user interface).  This is heavily determined by marketing.
  • Marketing tactics include sponsoring events and celebrity poker players.  In the case of pokerstars.com, a man named Chris Moneymaker entered an online tournament to earn a seat in the yearly televised world series of poker.  Moneymaker went on to win the entire event, putting himself and online poker on the map.  The idea that any amateur poker player could make it to the professional level (money and competition) ignited a spark among the gambling community.  source - http://www.pokerstars.com/team-pokerstars/chris-moneymaker/
  • There are listings of odds for various gambling houses.  An online casino can stand out as having the best odds for the user.
  • An online casino can also stand out for being feature rich.  For instance, Bodog offers an application that allows online gamblers to extend casino functionality to their phones.  This is just one example of how, when provided new and different outlets to gamble, people will gamble.

 

Online casinos have also had to differentiate themselves from live casinos.  Online casinos differentiate themselves from physical casinos in the following ways:

 

  • they are more convenient (in many ways - no travel, no waiting for certain machines to open up, no pants necessary.
  • they are anonymous
  • potentially cheaper (drink your own drinks, eat your own food, spend less money)
  • can have multiple games going on simultaneously, thus increasing profit potential for the individual gambler.
  • can change to suit cutomer needs much more quickly than physical casinos and at a much lower cost.  All changes are made through programming, rather than by removing and installing equipment.  No removing slot machines to make room for virtual poker.

 

How has the internet affected competitive strategies? 

  • created distinctions in market groups ie, people who gamble for the experience - live casino gamers, as compared to people who gamble solely for gambling's sake - online gamblers. 
  • Has led to the advent of many new company structures, including conglomerates of websites, to casino owned online casinos
  • there are new ways to lower prices, as the online industry is facillitated by different industries than live casinos
  • can offer bonuses for referring friends
  • can offer increased convenience
  • allowed for new kinds of innovation

 

 

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