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Posts tagged to Case Study

An inconvenient truth about the euro area

MarketLine

The creation of the euro area was a mistake. Top ranks of business and political classes in Europe were expecting an explosion in trade and economic activity following the creation of the single currency area in 2002. The euro would lubricate the integration of the newly formed euro area. It would be possible to achieve higher levels of growth and long-term prosperity. Unfortunately, the real GDP of the euro area increased only by 1.8% per year between 2001 and 2006 and by merely 0.2% per year within the 2007 -2015… Read more

WWE Inc: the NXT big thing?

MarketLine

WWE is the largest wrestling promotion globally, and listed on the New York Stock Exchange. Its recent financial performance has seen revenue and net income grow, with growth across most segments. In physical figures however the company’s TV ratings and live event attendance is down, with its key demographic of older males alienated by the company’s ham-fisted approach to mainstream appeal. One way the company has won back some wayward fans is the NXT brand, available exclusively on the WWE network. The successor to the Florida Championship Wrestling developmental territory,… Read more

Gas and Electricity in Great Britain – Competitive market illusion

MarketLine

A nationalized energy industry had operated in the United Kingdom for more than 40 years but it was gradually reformed with the introduction of market liberalization in the 1980s. Market liberalization was followed by a large-scale industry privatization fully completed in 1998. The competition injected in the industry through these reforms has been concentrated on generation and supply of gas and electricity. However, evidence from the Office of Gas and Electricity market (Ofgem), the body responsible for the regulation of the system, shows that the market is far from competitive…. Read more

Will the new Mitsubishi Regional Jet (MRJ) erode Embraer’s market share?

MarketLine

In the 1990s, Embraer and Bombardier identified a gap in the production of an aircraft sized for efficient operation in the regional jet market in Europe, Asia, Africa and, particularly, in the United States. Regional American airlines were increasingly demanding an aircraft designed specifically to serve markets that can be optimized with 37 to 110 seat capacity equipment. The production of Embraer Regional Jet-145 (ERJ-145) launched the company into the lucrative regional jets market in 1996, only two years after privatization. Prior to 1996, Bombardier was the sole player in… Read more

Denmark is a renewables leader, but its ambitious policy has caused problems

MarketLine

Denmark is one of the most progressive countries in the world when it comes to energy, and is aiming to be fossil free by 2050, in both electricity production and transportation. The optimistic strategy was announced in 2011. By 2020, the government aims to generate half of electricity from wind power. This ambitious policy is well on its way – the country generated 39% of its electricity by wind power in 2014, dropping slightly from the 41.2% generated in the first six months of the year. Former Climate Minister Rasmus… Read more

Hero MotoCorp: Promising rise of future transnational manufacturer

MarketLine

Hero MotoCorp (HMC – formerly Hero Honda Motors), based in India, is one of the world’s largest motorcycle manufacturers and is setting itself up to expand globally following the dissolution of its partnership agreement with Honda Motor Co. Ltd. in 2010 and the expiration of licensing contracts for Honda technologies in 2014. The first stage of this expansion has been to target developing markets, an approach that indicates an intention to sell existing style products to similar markets in order to leverage the know-how that HMC has already developed, particularly… Read more

Shimano Inc.: Tour de France ends with another Shimano victory

MarketLine

The bicycling and fishing components giant has had another fantastic year in 2015. With Team Sky’s win for Chris Froome in the sport’s greatest grand tour, comes another win for Shimano, who supplied the team with its top of the range Dura Ace Di2 components for Sky’s hugely successful Pinarello Dogma race bike. This is rather a coup for the company as the exposure from the world’s biggest public race rarely fails to trickle down to direct sales for those companies that have sponsored the most successful teams. With the… Read more

Market maturity and intense competition forces banks to expand overseas

MarketLine

Overseas expansion is a key trend in the global banking industry as many major players look to reduce their reliance on mature and intensely competitive domestic markets. The push for overseas expansion is beginning to kick start M&A activity within the sector. CCB, ICBC, Credit Agricole, and Mitsubishi UFJ have all engaged in M&A deals that involve the purchase of at least a stake in a non-domestic player since 2013. As explored in detail in the MarketLine case study Top ten global banks: An analysis of financial performance, growth opportunities… Read more

Driverless Cars: The coming insurrection

MarketLine

The technology required to produce an autonomous vehicle already exists in specific circumstances. The challenge is to make self-driving cars viable in all locations, all conditions and all situations. Incumbent automotive manufacturers, together with major suppliers to the industry, are well along the road towards commercial production having already implemented a number of more basic autonomous driving features. Yet there remain significant barriers to the adoption of autonomous driving, not least of which will be consumer perception. Some of the key concerns in this regard will be skepticism around the… Read more

Jaguar Land Rover: Five years of successive growth under Tata’s leadership

MarketLine

Jaguar Land Rover has now reached five consecutive years of growth in 2015, which has been achieved under Tata Motors ownership and investment. This success has emboldened the company to invest in itself and Jaguar land Rover now produces its own engines, has plants in Brazil and China and has brought the Jaguar range right up to date, making the company one of the most important and successful prestige car companies and one of the most recognizable British manufacturers. The company has managed to do this on the back of… Read more

Clothing retailer Gap’s expansion in India

MarketLine

Gap was founded in 1969 in San Francisco. The company’s products are sold under the Gap, Banana Republic, Old Navy, Piperlime, Athlete and Intermix brands. Gap has long been seen as the go- to- for young adults seeking affordable fashion. As explored in the MarketLine Case Study ‘The Gap, Inc. Strategies for a turnaround’ (Advantage subscribers click here to view the report or here for non-subscribers) the company has outlined a number of turnaround strategies including expansion in Asia, following volatile market growth in its domestic market for most of the… Read more

Rise in non-performing loans potential time bomb for China’s swollen banks

MarketLine

As measured by total assets, four of the ten largest banks in the world are now headquartered in China. As the Chinese economy has swelled, so too have the balance sheets of its largest banks. This has spurred great growth in operating incomes and net profit as demand for credit has soared. However, there are signs that the curse of non-performing loans (NPLs) that wreaked such havoc with the West’s banking system could potentially strike China, a ticking time bomb if left unaddressed, with several economic sectors posing a significant… Read more

The rise of fashion power houses in the fragrance industry

MarketLine

Fashion houses have successfully diversified their product lines by introducing fragrances. Strong brand reputation and a loyal consumer base means companies have a ready-made consumer base; and are able to leverage their brand identity to give them a head-start in this fiercely competitive market. Moreover many fragrance manufacturers are seeking growth in emerging markets such as China and India due to weak consumer spending during economic downturn most notably in Western Europe markets. The strong brand reputation and loyal consumer base means fashion power houses, such as Dior, have a… Read more

Can BT Sport challenge Sky’s dominance?

MarketLine

On August 1 2013, BT launched its sports TV offering, BT Sport, a flagship service broadcasting out of London’s Olympic Park. By paying vast sums of money to acquire the rights to a wide range of sports including Barclays Premier League football, Serie A football, Bundesliga football, Aviva Premiership Rugby, UFC, and MotoGP, and by poaching well-respected sports presenters like Jake Humphrey and Clare Balding, BT has shown that it is serious about rivaling Sky when it comes to sports broadcasting. Sky’s previous competitors, Setanta and ESPN, ultimately failed to… Read more

Save up to 25% on single copy reports

MarketLine

With the Festive Season just around the corner, MarketLine is proud to introduce a number of fantastic discounts across its industry reports. Budgets are tight, and whilst your company spending may be approaching its limit, the demand for quality market knowledge is as high as ever. That is why, until December 31st, our best-selling titles are on offer to you with up to 25% off. Industry Guides: Looking to expand your business into new countries or simply understand your current market? Explore and compare multiple markets across the globe with… Read more

Can Apple’s next big innovation be the ‘one box for TV?’

MarketLine

Apple’s purchase of Israeli technology company PrimeSense for $360 million is perhaps an indication of where-next the technology king is headed. Given that PrimeSense is a global pioneer in ‘gesture technologies’; seen in smart phones and gaming consoles, it may be more than just an indication. The Israeli company has previous success in this market as it provided some of the technology behind Microsoft’s hugely successful, Xbox, motion-sensing device; Kinect. Despite this Apple finds itself in slightly uncharted territory as it plays ‘catch up’ in the TV devices market. The… Read more

The sweet smell of success

MarketLine

Fragrances and perfumes have now evolved into a mainstream business within the cosmetics and personal care industries. The global fragrance industry has experienced moderate growth over the period spanning 2008-2012 with a (CAGR) of 3.7%. According to MarketLine, this industry grew by 4.4% in 2012. Growth in the industry is driven by trends towards urbanization which can enable emerging nations to sustain economic growth, as populations move toward larger cities and take up non-agricultural work, a new class of consumers will contribute to growth; and also increased importance of personal… Read more

Dacia-The budget car company taking the UK by storm

MarketLine

Renault, the French automotive manufacturer, has done well in recent years and has weathered the storm of the on-going recession period better than some of its US or Japanese counterparts, with good revenue growth in both 2010 and 2011 for the group. Despite a marginal drop in overall revenues in 2012, the company produced double digit revenue growth in 2010 and 2011, a sign that its business has continued to push new revenue streams even in periods of difficulty. Renault has been successful, not only in its traditional markets in… Read more

Car sharing industry – beginning of the end?

MarketLine

Zipcar, Inc. operates a car sharing network, providing self-service vehicles, conveniently located in reserved parking spaces, by the hour or by the day. The company offers its solutions to individuals, universities, businesses, and government agencies. It is present in North America and Europe. Zipcar’s way of doing business is particularly appealing to young city dwellers, who do not own their own cars, but walk, bike and use public transportation instead, most of the time. They usually like the cool cars  that Zipcar provides, such as Mini Coopers, or Toyota Prius,… Read more

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

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

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

Fashion in supermarkets not supermarket fashion

MarketLine

The UK apparel retail industry has experienced fluctuating levels of low growth in recent years which may potentially make it less attractive to new entrants. During a time of financial crisis and low disposable income, consumers are less likely to buy expensive designer wear. According to British national newspaper, the Telegraph, two-thirds of people reported living on less disposable income than last year (2012), and are trying to stretch out a low monthly expenditure budget of £192 ($304). Supermarkets have been able to establish themselves during the economic downturn by… Read more

IMAX revenues and profits fall in Q3 2013 but future opportunities remain

MarketLine

IMAX Corporation (IMAX) has announced its Q3 2013 results and, on the surface, it does not look good: Q3 2013 revenues are down by 35.9% over the same quarter of last year, and net income is down by a substantial 89.2%. This will be of great concern for IMAX and its shareholders, but it would be wrong to write the company off at this stage. On a year-to-date basis, the company’s slide in revenue and profit is not as severe. Revenues for the first three quarters of 2013 are down… Read more

Luxottica fares well despite uncertain global economy

MarketLine

Despite the cooling of the overall global luxury market, the outlook for sunglasses and eyewear, especially in emerging and developing markets, including South America and Asia, looks bright. Growth opportunities in emerging markets are based on the greater purchasing power of the upper-middle class, the proliferation of luxury stores and the increased availability and rising consumer recognition of premium and luxury brands. The concentration of global wealth in emerging markets has created increased demand for luxury items and accessories, driving consumption in the premium segment. This is great news for… Read more

giffgaff: Replacing traditional telecoms business model with co-created products and services approach

MarketLine

Despite declining revenues and increasing saturation of the overall UK telecoms market, mobile retail operations revenue increased in 2012, according to the independent regulator and competition authority – Ofcom. Although the rate of growth of the number of mobile subscribers decelerated significantly, there are still business opportunities to take advantage of, especially for mobile virtual network operators, who incur much lower costs and enjoy higher profit margins than traditional operators. giffgaff is a Telefonica-owned, SIM-only, pay-as-you-go mobile virtual network operator active in the UK. The company rents its mobile network… Read more

With Dread Pirate Roberts arrested, and Silk Road shut down, what next for Bitcoin?

MarketLine

With recent major news events covering the FBI’s arrest of Dread Pirate Roberts (Ross Ulbricht), the accused owner and mastermind behind the dark web’s primary illegal online marketplace Silk Road, Bitcoin has once again found itself in the spotlight. With the FBI seizing approximately $3.2m in Bitcoins, and the subsequent drop in value on the digital currency’s exchanges, Bitcoin once again finds itself in a difficult situation. First of all what is Bitcoin? Bitcoin is a form of crypto-currency with its origins dating back to 2008. It utilizes cryptography, a… Read more