MarketLine Blog

Posts written in March 2017

Uber’s Aggression: Battering both competitors and customers into submission, with questionable business practices

MarketLine

Uber has had an astonishing journey. Even for the technology industry where businesses regularly explode into life, Uber’s success story stands almost unparalleled in speed and scope. Estimates of its value vary but some think $70bn could be a plausible valuation for the company, which would make it bigger than some of the very largest automotive manufacturers in the world. However Uber has become a master of some of the dark arts of business, using courts to get its way, avoiding regulation, removing competitors and encouraging a dog eat dog… Read more

Jaguar Land Rover: JLR breaks its own sales records but company has some large problems looming

MarketLine

In 2016 Jaguar Land Rover reached its highest ever volume of sales. Already Britain’s largest vehicle manufacturer, the company hit sales of 584,313 vehicles in 2016 up by a fifth over the previous year. The company’s strength has always been its Range Rover marque, which is a prestige vehicle commanding high list prices but also high demand and Jaguar has largely been supported by its Range Rover bigger brother. But recently Jaguars steady process of modernization has helped bolster the group’s sales. The group has ambitious plans but also a… Read more

Renault Car Emissions: New allegations threatens French car manufacturer

MarketLine

The accusations against Renault published in the French press follow on from a 2015 report detailing cars which exceeded environmental rules by over 300%. Stretching back to 1990, the hierarchy at Renault is said to have known about and been involved with cheating emissions tests. The influence of the French government, and therefore the French taxpayer, will be important given the upcoming presidential election and shareholding. If reports of nearly one million cars being sold with devices used to distort the results of emission testing, the scandal could involve the… Read more

South Korea and China: WTO complaint must be resolved swiftly and amicably

MarketLine

In July 2016, American and South Korean military officials agreed to deploy the Terminal High Altitude Area Defense (THAAD) missile defense system in South Korea. China was unimpressed, seeing the move as an act of aggression and intimidation by the US close to its borders, as well as citing concerns that it could interfere with the efficacy of its own military capabilities. On March 20, 2017, South Korea complained to the WTO that China’s unease with the THAAD situation has caused it to retaliate economically, although it was keen to… Read more

East meets West. The battle for supremacy in India’s e-commerce market

MarketLine

While China and the US currently dominate in terms of e-commerce spending, India is one of the world’s fastest growing internet markets. It is also the fastest growing country in the Asia Pacific region in the retail e-commerce space. The rapid pace of growth of e-commerce in India creates a huge potential opportunity and attracts not only local players but foreign e-commerce giants, like Amazon and Alibaba. The largest local players, Flipcart and Snapdeal, initially seen as the dark horses in this race and attracting serious investment, are now losing… Read more

President Park Impeached: Relations with chaebols could change forever

MarketLine

Legislation designed to curtail the strength of chaebols has traditionally failed to discover parliamentary approval; now amendments to several acts have found new impetus following the impeachment of the president. Whilst voters await the coming election, prospective candidates are seeking to assert their case for a change in how chaebols operate in the South Korean economy. However, despite the rise in support, problems will need to be overcome for lasting change to occur. Previous efforts have fallen flat; this time there is a far greater chance of success. Moon Jae-in,… Read more

Netflix competition: Not a chill environment

MarketLine

Growing from a DVD rental/ selling service in 1997, Netflix today has become one of the leading companies in the online streaming market. Netflix has benefitted greatly from the increased range and depth of broadband internet. The global reach of Netflix and its competitors serve to increase rivalry.  Gaming systems which now incorporate applications into their systems present new and growing opportunities and potential dangers for Netflix. The increased advertisements from gaming systems can help recruit more customers which is also an opportunity for competitors of Netflix. Netflix, as one… Read more

Global non-life insurance market will surpass $2.7 trillion by 2020, says MarketLine

MarketLine

The global non-life insurance market has experienced strong growth in recent years, registering a compound annual growth rate (CAGR) of 5.4% between 2011 and 2015 to reach a value of $2.03 trillion, according to data from research company MarketLine. The company’s report shows that market values have increased in all regions. Global growth, however, is primarily driven by healthy revenue increases in the US and China, both ranking in the top three markets globally. As the single largest market globally accounting for almost 40% of all revenue, the performance of… Read more

House prices in Sweden witness steep growth: Strong demand will continue pushing prices up even further

MarketLine

The Swedish housing market has witnessed a steep increase in prices in recent years, and this is the consequence of the supply of new houses not meeting the present and increasing demand for accommodation. A major reason for the increase in demand for buying property is that renting property has become increasingly difficult due to scarcity, especially for younger adults entering the property market for the first time. With record low interest rates currently being offered by banks, many Swedes have therefore taken on mortgages in order to purchase properties,… Read more

Physical Book Vs. E-Book: Traditional book not ready to die out just yet

MarketLine

There has been much debate in recent years regarding the physical book vs. the e-book. Many commentators have outlined a sad situation in which the traditional book is dying out as the rapidly growing proliferation of digital technology replaces it. However, the situation is not quite as clear-cut as this. While it is undeniable that there have been declining book sales in recent years, this is not necessarily wholly linked to the explosion of e-books in the market. E-books are undoubtedly a more convenient way to store and carry around… Read more

Marine freight industry to reach value of $210 billion by 2021 following poor 2015, says MarketLine

MarketLine

The global marine freight industry has struggled in recent years, suffering from a negative compound annual growth rate (CAGR) of 3.3% between 2012 and 2016 amid an increasing oversupply and a collapse of global demand, according to research firm MarketLine. The company’s latest report states that economic growth slowed across most of the world over this period, particularly in China, which has recently been the source of much consumer demand. This resulted in a fall in demand for transportation services in general, which forced prices down and led players to… Read more

Global steel market to reach $865.5 billion by 2020, says MarketLine

MarketLine

The global steel market reached a value of $753.4 billion in 2015, representing a negative compound annual growth rate (CAGR) of 11.2% from 2011, according to data from research company MarketLine. The company’s latest report states that China is the largest steel producer globally, commanding 49.6% of total market value and exporting more than the North American Free Trade Agreement (NAFTA) and European Union (EU) countries combined. As it accounts for almost half of the global market, changes in the Chinese steel supply and demand impact the global market situation… Read more

Spring Budget 2017: Budget statement to address Brexit effect and to impact business rates

MarketLine

The economic forecasts released by the UK government before and after the referendum, are astounding in how much they have changed: from an optimistic positive outlook quoted by George Osborn, to a more bleak negative picture for the next five years. Uncertainty playing a major part has led to the outcome of more borrowing for the UK government in order to cover the worst case scenario of lower valued tax receipts in the future. With the Spring statement being the first and last one this April (there will only be… Read more

Greek debt crisis: Why Grexit is not an option

MarketLine

It is actually proven that undoing a fatal mistake of relying on an overvalued currency does not correct matters. The no alternatives case for the Greek economy on staying in the single currency union is easy to realize after having a close look at its macroeconomic figures that reflect something of an economic collapse. In fact, the heavy reliance of the Greek economy on services and at the same time its lack of a national productive base  rule out the possibility of achieving growth through the adoption of a devalued… Read more

Primark expansion: The impact of Brexit on its profit margins

MarketLine

Primark, first established as Penneys in 1969 now has over 290 stores in Europe and the US collectively. In 2017, AB Foods the parent company of Primark has stated a further 16 Primark stores are to open across Europe and the US. Following the loss of BHS in 2016, a niche in the market was identified, a niche which Primark intends to capitalize on. Primark has been identified as the leading low-cost clothing retailer in recent years competing against the likes of ASDA and H&M. The branches in Europe were… Read more

Gig Employment: Not a smooth ride

MarketLine

The number of individuals defined as self-employed is growing aided by the latest trend of gig-employment. These self-employed individuals serve to increase competition between those seeking full time employment and those who prefer to work contract to contract. A recent change in the mindset of the gig-employment workers has caused a shift in working patterns with these workers now beginning to seek out full time employee status and the benefits which accompany this. Businesses which previously exploited these gig workers (e.g. Deliveroo and Uber) are now under scrutiny and face… Read more

LiDAR self-driving technology. A case of calculated theft?

MarketLine

Google and Uber started off as friends with Google parent Alphabet investing $258m in Uber in 2013. They then became competitors, as Uber started experimenting with its fleet of self-driving cars in 2016. Finally, in 2017, both companies ended as adversaries in court, engaging in a bitter legal fight to control the future of transportation. The suit details the lengths Waymo goes to in order to protect its trade secrets, including purchasing LiDAR components from numerous vendors and completing assembly in-house to prevent any single vendor from knowing everything about… Read more