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Case
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Reference no. 9-709-417
Published by:
Harvard Business Publishing (2009)
Version:
10 September 2009
Length:
23 pages
Data source:
Field research
Notes:
To maximise their effectiveness, colour items should be printed in colour.
Abstract:
Betting exchanges provide an electronic platform that allows ordinary consumers to not only back teams to win, but also to lay odds for other punters to back. This business model allows punters to cut out the middle-man of the bookmaker, and leads to a much more efficient 2-sided market. Betfair.com's domination of the betting exchange has threatened to undermine the core of the traditional bookmakers' business model. The case examines two aspects of the industry: (1) what specific choices did Betfair make to become the dominant betting exchange, winning the competitive battle over Flutter.com? and (2) at what stages do Betfair.com's business model and those of the bookmakers interact? Will Betfair.com naturally come to dominate the industry, and if so how should the bookmakers react?
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Ref no: 9-709-417