MarketLine Blog

Posts written in February 2018

UK sugar tax – Attempts to curb rising levels of obesity


The UK is the most obese country in Western Europe, and the sixth most obese country in the world. Around 26.9% of the British population has a body mass index of 30 and above, according to the OECD report and the cost of treating ill health caused by obesity and related issues is rising fast, threatening the NHS budget. The government, long criticized for taking no action to tackle this issue, decided to introduce a Soft Drinks Industry Levy, in the hope that the increased cost will stop people from… Read more

Saudi Arabia and Russia oil alliance: Desert kingdom requires Russian co-operation to solve economic problems


Petrostates have historically been wasteful in regard to spending the wealth generated by large-scale fossil fuel extraction. The desert kingdom of Saudi Arabia is no different, spending vast sums on subsidizing fuel and extensive social programs; most of the workforce is employed by the state, funded by oil. Now the country is undergoing significant reform to correct economic imbalances and diversify the economy. The Aramco IPO is driving Saudi Arabian policy, which in turn is likely to be directing the nature of OPEC policy. Oil futures for March 2019 are… Read more

Tablet market decline continues: Strong demand for substitutes and low innovation resulting in falling sales


The tablet market has undergone consecutive years of decline in recent years, and the market is expected to continue declining in the coming years as well. This has put intense pressure on players operating in this market, and many such as Dell and HTC have decided to pull out. Overall the market is dominated by Apple, Samsung and Amazon. Several reasons have been given to explain why the tablets market after such a promising start has succumbed to this pattern of decline. An important reason is the way in which… Read more

Nissan $9.5bn China investment: Scale of spending required to stay relevant in world’s largest car market


Whilst Nissan is not regarded as being a member of the top-tier car manufacturers – the likes of Volkswagen Group and Mercedes Benz are much larger – that has not stopped the company from pumping $9.5bn into car manufacturing in China. Such investments are now essential, particularly for the less popular global brands. The move represents significant ambition from the Japanese car maker: Toyota, recently the second largest player in the Chinese market, is declining in China and an opportunity exists for Nissan to climb up the hierarchy. Large investments… Read more

Amazon’s latest financials: Growth potential lies in advertising and web services


Amazon’s latest financials have once again demonstrated exponential growth, as the company continued to increase its advantage over its rivals in the online retail sector. The largest part of its revenues may come from these retail operations, but profitability and growth potential lies in other “overlooked” income streams, such as the web-based services and advertising. This becomes obvious form the fact that Amazon continued to incur operating losses from its retail business, which are the price paid for the growth of revenue. Moreover, these losses mainly come from emerging markets,… Read more

Daniel Wellington: The fastest growing private European company in 2017


Daniel Wellington is a Swedish watch making company that has been placed at the top of the “Fastest Growing European Companies” list. Started by Filip Tysander in 2011 using his own money, the company has since witnessed impressive growth thanks to a very successful social media marketing strategy campaign. Rather than engaging in traditional marketing in a rather congested market where giants like Rolex and Tag Heuer exist, Daniel Wellington instead has sought to utilize the power of social media in order to boost its brand awareness. It has done… Read more