MarketLine Blog

Posts tagged to Datamonitor

Sainsbury’s and Tesco: Retaining market share during the credit crunch

MarketLine

Sainsbury’s looks to be gaining ground on Tesco, at least in terms of sales revenue as the third largest (following Asda and Tesco) supermarket group announced a fourth quarter sales increase of 7.1% (excluding fuel). This, in conjunction with Tesco’s shrinking grocery market share, seems to make Sainsbury’s the biggest ‘winner’ following the horsemeat scandal, as consumers flock to the seemingly better quality meats and provisions in the iconic orange branded stores. Whenever an industry-wide scandal or external shock racks a market or industry, it is a race for PR… Read more

Asda rates HMV for brand

MarketLine

With Deloitte administrating the sale of HMV’s stores and assets, Asda has expressed interest in the company’s brand, an intangible which had gone largely unrecognised by previous suitors. Assuming Asda, a wholly-owned subsidiary of Walmart, have done their maths or cost-benefit analyses correctly, the prospect of HMV stores run by, or even situated inside large Asda stores raises questions about the conventional institutional-investor’s approach to “dying” brands and firms. For example, the specialist investor Hilco, reputed for its experience in large divestment operations, has built its own brand on liquidating… Read more

McDonald’s: Remaining Relevant in a Health Conscious Society

MarketLine

McDonald’s Corporation is one of the world’s largest food service retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an… Read more

Play.com to leave the UK market

MarketLine

Play.com, the online retailer owned by Rakuten, is closing its UK direct retail store business and became an online marketplace. From March 2013, the company will no longer sell directly to customers and will instead, employ a business model similar to Amazon and eBay, allowing its users to list their own items (e.g. DVDs, video games, and electronics), on its website for sale. The closure is a result of the closing of a tax loophole, which exempted items under £15 (around $24) in value being imported to the UK from… Read more

Boeing: The 787 Dreamliner

MarketLine

In 2011, Boeing made the first commercial delivery of its 787 Dreamliner. It is designed to offer airlines enhanced fuel efficiency and long-haul capability in a mid-sized jetliner. This article shows that how Boeing responded to customer demand in order to make the Dreamliner a reality, and how its strategy differed from that of Airbus, its chief rival. Fuel is a major cost for airlines, and its price is likely to continue to rise. This is generating demand for fuel-efficient planes. Boeing’s new 787 was designed to offer ‘super-efficient’ fuel consumption…. Read more

Are we witnessing the death of the traditional book?

MarketLine

Thursday 7th March 2013 is World Book Day; a day when the joy of reading is celebrated and promoted. Numerous events will be held in schools, nurseries, libraries, and book shops across the UK and Ireland. Many children will dress up as their favorite storybook characters and numerous World Book Day tokens will be exchanged for one of eight World Book Day new book releases. A smartphone app will also be launched aimed at young adults, featuring stories from leading teen authors. This delivering of content digitally highlights the era… Read more

Play.com: The Rapid Rise of the Internet Retailer

MarketLine

Play.com, is a Jersey-based, privately owned online retailer. Its main product lines include DVDs, CDs, books, gadgets, video games, DRM-free MP3 downloads, and other electronic products, as well as clothes and accessories. Amongst the largest e-commerce retailers, Play.com was the one recording the most rapid growth, since its establishment in1988. Starting with a focus on selling CDs and DVDs mainly to young, tech-savvy men, the company quickly evolved into one of Europe’s most successful e-commerce retailers. Since the acquisition in second half of 2011, Play.com is a part of Rakuten… Read more

EADS: Life after BAE? Flying High after the Failed Merger despite Challenges in the Defense Sector

MarketLine

The much vaunted merger of BAE Systems and EADS failed to materialize in October 2012 because of political deadlock, generating uncertainty regarding the future of both companies. The full results for the financial year 2012 show that EADS seems to be doing just fine. 2012 saw a 15% increase in revenues for the company, driving it to €56.5bn ($78.6bn) against 2011’s €49.1bn ($68.3bn). Airbus, Eurocopter and Astrium provided the boost, with defense remaining flat. Net income was up 20% to €1.9bn ($2.6bn). Order books were also up 5%. Shares peaked… Read more

Is a Public Preference for Cheap Food Behind the Horsemeat Scandal?

MarketLine

On January 16th, the Food Safety Authority of Ireland said beef burgers with traces of equine DNA were being supplied by subsidiaries of the ABP Food Group. One product was found to be classed as 29% horse. The finding resulted in ten million burgers being taken off the shelves of retailers including Tesco, Lidl, Aldi, and Iceland. Over the next week, Burger King switched supplier from ABP Food Group as a precautionary measure, while Sainsbury’s, Asda, and the Co-op removed some frozen products from their shelves, though none were found… Read more

ARM Exploiting IP in a Growing End-Market

MarketLine

ARM Ltd is a designer of low-power microprocessors, which generates revenue by licensing its intellectual property to semiconductor manufacturers. It has enjoyed ten years of unbroken profitability, more than quadrupling its revenues during the same period. This case study shows how providing a solution to a technological problem, and consistently executing a simple but effective business model, has brought the company success. The ARM business model is based on intellectual property. The company designs the core architecture of the digital processors that form the heart of many contemporary electronic products…. Read more

Retail-led Strategy by Burberry to Target High Net Worth Individuals in Asia Pacific

MarketLine

During a dark period for retail – when people have become accustomed to hearing about the struggle of many high end brands unable to win market share from more cautious luxury customers – the news of Burberry’s continuing success leaves some wondering how the company is delivering such a strong performance, with a revenue increase of 35%, 105 new stores added and a productivity boost of 11%. “While the luxury industry faces global challenges in the year ahead, we remain confident in our team’s ability to outperform, underpinned by the… Read more

BT buys ESPN’s UK and Ireland channels

MarketLine

BT is proceeding full steam ahead on its mission to rival BSkyB as the UK’s leading sports broadcaster and today announced an agreement to buy the ESPN and ESPN America channels. The deal, the details of which remain scarce, will allow BT to significantly increase its live sports coverage, with ESPN currently holding rights to show FA Cup, Scottish Premier League, Uefa Europa League, and German Bundesliga matches. The deal is expected to complete in July this year and if all goes to plan, will coincide perfectly with the planned… Read more

BMW Case Study: A Year of Success Amidst Economic Uncertainty

MarketLine

BMW and its brands, Rolls-Royce and MINI, announced record sales for 2011, retaining its position as the world’s largest manufacturer of luxury vehicles amidst a backdrop of economic uncertainty. During 2011 BMW experienced double figure growth across all of its automobile brands and set a new sales record for its BMW Motorrad motorcycle brand (however, its other motorcycle subsidiary, Husqvarna, experienced its third consecutive decline in annual sales). All regions that the company operates in experienced growth; however, BMW believes that its European sales will remain flat during 2012, with… Read more

Can the PlayStation 4 Compete with Casual Mobile Gaming?

MarketLine

At a New York press event on 20 February, 2013, Sony took to the world stage to unveil its latest incarnation of the PlayStation line: the PlayStation 4 (PS4). Although the console itself was not revealed, Sony’s main emphasis was on the concept behind the PS4, which was given a vague release window of holiday season 2013. Notably, much attention was paid to how the console will fit in with, and thus compete against, consumer movement to casual mobile experience offered by smartphones and tablets, which typically run on iOS,… Read more

Sustainable Fashion: A Growing Trend

MarketLine

Sustainable fashion, also known as eco fashion, is part of the larger growing trend of creating more sustainable, environmentally friendly and ethical products. Whilst there is a lack of consensus over definitions, the environmental sourcing and manufacture of materials, reduction of carbon footprint, and safety of consumers and laborers, remain important. Christian Kemp-Griffin, chief mission officer at Edun, an eco-fashion brand that focuses on fair trade for its producers in Africa, says, “Ethical companies make thoughtful decisions and sell product thinking about the people who make the clothes – wages,… Read more

What does the Ofcom 4G Auction Mean for UK Consumers?

MarketLine

Ofcom today revealed the results of the UK 4G mobile auction, announcing which providers have won access to the required mobile spectrum bands. The result of the auction is that operators Everything Everywhere Ltd (EE), Hutchison 3G UK Ltd (3), Niche Spectrum Ventures Ltd (a subsidiary of BT Group plc), Telefónica UK Ltd (O2) and Vodafone Ltd have all won blocks of the spectrum on offer, with Vodafone bidding the most to win five blocks of spectrum. Notably, this announcement comes six months after Ofcom gave EE, formerly known as… Read more

India’s HDFC Bank has Launched an Ultra-Premium Credit Card

MarketLine

In 2011, HDFC launched its Infinia credit card, only 5,000 of which are to be issued. This case study examines how and why HDFC aims to meet the requirements of a small but potentially lucrative customer base: India’s ultra-rich. In July 2011, HDFC launched Infinia, an ultra-premium credit card. It is being offered to only 5,000 customers, and its lack of a pre-set spending limit, other benefits, and marketing are all intended to position it as a highly exclusive product for the ultra-rich only. India has a growing class of… Read more

Prada: From Family-Owned Business to Global Luxury Goods Powerhouse

MarketLine

Prada Group (Prada) is one of the world’s leading players in the design, production and distribution of luxury leather goods (including handbags), footwear, apparel, accessories, eyewear and fragrances. The company owns and operates four brands: Prada, Miu Miu, Church’s and Car Shoe. Prada retails its goods through a network of 345 directly operated outlets, 30 franchise stores, and concessions in upscale department stores such as Saks Fifth Avenue (New York), KaDeWe (Berlin) and Harrods (London). The company undertook an Initial Public Offering (IPO) in June 2011 and is now listed… Read more

Impacts of Deepwater Horizon Oil Spill on BP Plc.

MarketLine

The Deepwater Horizon Oil spill took place in the Gulf of Mexico in 2010. The spill emanated from a seafloor oil gusher caused by an explosion of the Deepwater Horizon semi-submersible Mobile Offshore Drilling Unit, which was owned and operated by US company Transocean. Transocean was drilling for BP in the Macondo Prospect oil field about 40 miles (60km) southeast of the Louisiana coast. The explosion took place on 20th April 2010 and resulted in the Deepwater Horizon oilrig sinking two days later. An average of over 50,000 barrels of… Read more

Alcoa Case Study: Benefiting from Saudi Economic Planning

MarketLine

In 2009, the multinational aluminum producer Alcoa announced a joint venture with the Saudi mining company Ma’aden. Together, they are constructing an integrated bauxite mine and aluminum smelter in Saudi Arabia, pioneering production of this metal in the Kingdom. The project sheds light not only on Alcoa’s commercial strategy, but also on the economic strategy of the government of Saudi Arabia, a country with the mixed blessing of abundant natural resources. Alcoa is a large multinational aluminum player. Like many of its peers, it is vertically integrated, with interests in… Read more

Texas Instruments Case Study: National Semiconductor is TI’s Latest Strategic Acquisition

MarketLine

In September 2011, Texas Instruments (TI) acquired National Semiconductor (NatSemi), a leading manufacturer of analog semiconductors. The deal significantly increases TI’s share of the buoyant and highly profitable analog market. It is also the latest in a series of acquisitions and divestments that over the course of more than a decade have helped transform TI from a diversified technology company into one highly focused on semiconductor manufacturing. TI has been using acquisitions and divestments to focus on its core competence of semiconductor device manufacturing. In 2011, TI acquired NatSemi, a… Read more

Barclays Announces 3,700 Job Cuts & a Plunge in Pre-Tax Profits

MarketLine

Barclays was today the first of the UK’s big four banking groups to announce its 2012 results and they did not make for pretty reading, at least at first glance. The headline grabbing figure was £246m ($394.5m) which represented the bank’s statutory profit before tax. This is a huge fall from the £5.9bn ($9.5bn) seen in 2011, due in the main to compensation for mis-sold products and a loss on the value of its own debt. There was also the not-so-insignificant matter of a £290m ($465.1m) for its role in… Read more

G4S Olympic Fine Stands at £70m

MarketLine

G4S is the world’s leading security firm and remains dominant in its market despite some recent turbulent public image issues. At the London 2012 Olympic Games the company was originally awarded the huge security contract, but couldn’t fulfil its promise of 10,000 security personnel and subsequently the UK’s military was drafted in as a replacement. The resulting furore in the media and fines and costs incurred by failing to complete its contract should have affected the company adversely, however this doesn’t seem to have been the case. G4S controls some… Read more

Dexcom Case Study: Launching a Continuous Glucose Monitor

MarketLine

Continuous glucose monitors (CGMs) promise certain diabetics more effective self-management of their condition. Medtronic is a leading US supplier of CGMs, but since 2006 it has faced competition from a small start-up, Dexcom. Management of diabetes often requires electronic blood glucose testing. Until recently, this was done using meters that offered single measurements. Continuous monitors came on to the US market in 2001 and offer certain diabetics the prospect of improved management of their condition, by detecting abnormal glucose levels more rapidly. Medtronic and Dexcom are the only players in… Read more

The OTC Healthcare Market has Become Increasingly Attractive in Recent Years

MarketLine

In recent years, a number of major healthcare companies including Pfizer, Roche, and Bristol-Myers Squibb (BMS) have sold their over-the-counter (OTC) healthcare divisions in a bid to focus their attention on pharmaceuticals. Bayer acquired Roche Consumer Health in 2004, while BMS sold its OTC unit to Novartis in 2005. Pfizer sold its Consumer Healthcare business to Johnson & Johnson in 2006. However, more recently this trend has reversed with companies re-entering the OTC healthcare market. For example, Pfizer marked its re-entry to the market in 2009 with its acquisition of… Read more

John Lewis Partnership Case Study: UK Retail Chain is Owned by its Employees

MarketLine

John Lewis Partnership is one of the UK’s most well-known and successful retail chains. Whereas most retailers of its scale are owned by shareholders, John Lewis Partnership is owned by its employees. John Lewis Partnership is owned by its employees via a trust. Financials for the past ten years show JLP performing strongly, even in difficult market conditions. This is reflected in the structures in place for workplace democracy, and in the annual profit-share bonus given to all employees. Company strategy focuses on long-term planning, brand strength, and employee partnership…. Read more

Benecol Case Study: A Leader in Cholesterol-Reducing Food

MarketLine

Benecol is a brand licensed by Finnish company, Raisio Group. Branded products include a range of cholesterol-lowering food goods such as fat spreads, yogurts, milk, bread, and soy drinks. Benecol has become one of the market leaders in cholesterol-reducing foods. Benecol was developed after Raisio Group was approached by a Finnish university, which was looking into the use of plant stanols, a class of compounds derived from the phytosterols found in many plants, as a way to combat high cholesterol levels amongst the Finnish population. Benecol margarine was introduced to… Read more

MarketLine has entered the Blogosphere

MarketLine

Be gentle with us – we are new to this blogging game… but we are plotting great things for our blog, and hope that these grand plans and future realities will influence your desire to peruse, muse and contribute to Marketline.com/blog. Entering into this first post with trepidation, we looked to some notable figures for inspiration on beginnings, dismissing Buddha and Plato, the favourite was from Lewis Carroll’s Alice in Wonderland, ‘Begin at the beginning and go on till you come to the end: then stop.’ So that is what… Read more