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  • The 4.5 Billion UK Confectionary Industry Is Dominated by Three Big Firms

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    G M Ali Kawsar
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    The UK confectionary industry is dominated by three large firms - Cadbury, Mars, and Nestle - which together control over 60% of the market. These firms compete through supplying multiple brands and spending heavily on TV advertising. For example, Nestle spent £21 million on an advertising campaign in 2009. Two pay TV channels, Showtime Arabia and Orbit, merged in 2009, combining their programming, marketing, distribution, broadcasting technology, and subscriber management systems into a single, integrated business that could achieve efficiencies and synergies.

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    The UK confectionary industry is dominated by three large firms - Cadbury, Mars, and Nestle - which together control over 60% of the market. These firms compete through supplying multiple brands and spending heavily on TV advertising. For example, Nestle spent £21 million on an advertising campaign in 2009. Two pay TV channels, Showtime Arabia and Orbit, merged in 2009, combining their programming, marketing, distribution, broadcasting technology, and subscriber management systems into a single, integrated business that could achieve efficiencies and synergies.

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    14 views1 page

    The 4.5 Billion UK Confectionary Industry Is Dominated by Three Big Firms

    Uploaded by

    G M Ali Kawsar
    The UK confectionary industry is dominated by three large firms - Cadbury, Mars, and Nestle - which together control over 60% of the market. These firms compete through supplying multiple brands and spending heavily on TV advertising. For example, Nestle spent £21 million on an advertising campaign in 2009. Two pay TV channels, Showtime Arabia and Orbit, merged in 2009, combining their programming, marketing, distribution, broadcasting technology, and subscriber management systems into a single, integrated business that could achieve efficiencies and synergies.

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    3. The 4.5 billion UK confectionary industry is dominated by three big firms.

    Cadbury with26.8% market share , Mass with 19.1% and Nestle with 15.6%. One
    way in which they compete by supplying lots of different brands. All three spend
    heavily on TV advertising. For example , in 2009 Nestle launched a 21 million
    advertising campaign.
    (a) Identify two evidences that suggest that UK confectionary industry is oligopoly.
    (2)
    (b) Firms can compete by non price competition. Briefly explain two types of nonprice competition.(4)
    (c) What is geographical collusion?
    (2)
    4. Show time Arabia and Orbit are both pay TV channels. In 2009, the two broad
    casters merged. The deal brings together the two core network operators
    comprising programming ,marketing, distribution, broad-cast technology and
    subscribe management system.
    (a)What type of integration is described in this case? Explain briefly.
    (3)
    (b) How might the business could benefit from the merger?
    (3)

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