MarketLine Blog

Posts written in November 2013

Consumer packaged coffee: Nestlé

MarketLine

With a market share of 11.3%, Nestlé is the second biggest player in the global consumer packaged coffee market. The company is not satisfied sitting second to Mondelez International (15.7%) and is implementing market segmentation strategies aimed at making it the undisputed market leader. Nestlé’s offering at the lower, instant end of the market revolves around the highly popular Nescafé brand which, according to the company, is the most-consumed coffee in the world. In recent years, the company has grown this brand and launched new products, most noticeably the Nescafé… Read more

Non-life insurance market shows remarkable signs of life

MarketLine

Globally, non-life insurance has shown remarkable resilience, recording continual growth even during the height of the financial crisis which engulfed most of the globe. By 2012, worldwide gross written premiums had increased by around $270bn when compared with 2008, the year the financial difficulties started. The global non-life insurance market grew by 5% in 2012, to reach a value of $1,921.2bn, representing a compound annual growth rate of 3.8% for the period spanning 2008-2012. Growth was fuelled by the Asia-Pacific region as Western economies struggled as car and house sales… Read more

Primary aluminum producer Rio Tinto Alcan struggles amid triple threat

MarketLine

In summer 2007, Rio Tinto outbid rival American aluminum producer Alcoa Inc. to acquire Alcan Inc., Canada’s largest aluminum producer, for $38.1bn in a friendly takeover deal. The high price was paid with the belief aluminium prices would continue to rise, and China would eventually open up to foreign aluminium imports. However the acquisition soon turned sour. Sealed less than a month before the financial crisis came to the fore, aluminum prices plummeted from a 35 year high, falling 36.9% by 2009 from 2007’s peak. Relying on China as a… Read more

Advertising industry due for major upheaval?

MarketLine

WPP, one of the world’s biggest advertising, media and communications groups has reportedly been interested in acquiring another major player in the advertising business, Interpublic Group. This deal, though denied by WPP Chief Executive Officer, Martin Sorrell, would have seen WPP become the world’s largest advertising company. WPP has recently been adding to its portfolio, with wholly-owned operating company Young & Rubicam (Y&R) announcing on 20th November 2013 that it had acquired a majority stake in Plasenta Conversation Agency, a Turkish social media company that employs over 60 people, whose… Read more

The rise, fall and rise of Bitcoin

MarketLine

The digital currency Bitcoin has experienced a surge in value in recent weeks, increasing rapidly since October to exceed a value of $900 for one unit on the Bitcoin exchange Mt. Gox. The value of Bitcoin fell to $125 after the closure of the Silk Road (a website where users could buy and sell illegal items using Bitcoin) by the FBI on October 2nd 2013, but has since rallied well to briefly reach $900 on November 19th, before falling to below $500. One of the reasons linked to this sudden… Read more

Will Microsoft’s ‘all-in-one’ strategy with Xbox One pay off?

MarketLine

Having seen the North American release of Sony’s PlayStation 4 (PS4) on November 15, 2013, the world is now braced for the imminent release of Microsoft’s competitor console – the Xbox One (XB1) – which is set for release in 13 key global markets on November 22, 2013. Crucially, Microsoft is positioning its console as an ‘all-in-one’ multimedia entertainment hub, whereas Sony is currently focused on the gaming aspect of its new console. Interestingly, the opposite of this was true last generation, as Sony positioned its PlayStation 3 (PS3) as… Read more

The rise of e-commerce in fashion in supermarkets

MarketLine

The increasing popularity of online retail has resulted in an increase in online purchases making it an attractive means for retailers to drive top line growth. Asda has boosted its presence in the online marketplace with its website direct.asda.com which offers a wide range of products including its own clothing brand, George. Asda sells over one million products across ‘Asda Direct’ and ‘George.com’, it can utilize the opportunity to market its presence across the globe through Internet services and increase its customer base. Furthermore, enhancement of the internet service could… Read more

Islamic finance presents opportunities for US banks

MarketLine

Islamic, or more accurately Sharia-compliant, finance is a huge potential market for specialist providers and global banking giants alike. Estimates place the global Muslim population at 1.6 billion, equivalent to approximately 23% of the world total, this offers an excellent potential client base but the range of available Islamic finance products and services is largely under-developed. Some countries with majority Muslim populations, such as Malaysia and Saudi Arabia have relatively advanced offerings, and although there are signs that the market in Europe is finally taking off in earnest, North America’s… Read more