Following on from the comprehensive economic review, which produced the first ever strategic plan for the Racing industry, titled 'A Plan To Get Back on Track'. RWWA turned its attention to the question of whether it has the right structure and business model to successfully manage the industry into the future.

To this end The Boston Consulting Group (BCG) recently assisted RWWA to determine what kind of organisation it will need to become to achieve its strategic vision and ensure a prosperous future for the industry in the rapidly evolving world of gaming and wagering. From this “Staying on Track Review” a strategic pathway has been developed by RWWA, proposing steps to take in the short, medium and long term.
A review of RWWA's history shows that it has performed strongly since its inception. In particular:

Wagering revenue growth has been increasing at an average of 9.6% per annum over the past three years, which is at least 50% higher than the next best state's TAB
Much of this growth has come from imported Eastern state products, although domestic product across all codes still makes a significant and strong contribution
Industry payments to codes have increased from $62m in 2003/2004 to $104m in 2007/2008, which helped fund increases in prize money and number of races
On-course wagering is increasing at a rate of 7% per annum and on-course attendance, although harder to measure, is also on the rise.

Despite this strong performance, RWWA cannot afford to rest on its laurels. Wagering growth has been fuelled by buoyant economic conditions, which are likely to moderate in the medium term. To deliver on its short and medium-term objectives, RWWA will need to address the changing preferences of its customers in an increasingly competitive era.

Currently, 95% of the industry's turnover comes from parimutuel wagering. The research indicates that over the next five years, a strategic gap will start to emerge between the performance required by RWWA to sustain a viable Western Australian racing industry and the profits it is able to extract from its traditional business model, a model which is coming under increasing pressure from new industry trends.

RWWA will need to enhance its traditional business model to embrace new customer demands. The new strategic initiatives will initially focus on sports and race wagering, but in the longer term, RWWA will need to continually review its position to ensure it is able to grow and maintain income levels. Initiatives will need to be pursued in a sustainable and socially responsible manner.

To meet its broader objectives, RWWA will also need to engage with the industry as a whole to ensure high standards of integrity and adequate participation of owners, the public and those who derive their living from the industry. This will continue to include pursuing ways to enhance industry margins and efficiency and restructuring the profile of its competition to enhance the Western Australian racing brand. Success in these ventures will depend on RWWA's ability to develop a new set of critical capabilities, most notably around brand development, people and its 'go-to-market' strategy.

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