scholarly journals Examining manufacturer concentration metrics in consumer packaged goods

2020 ◽  
pp. 147078532090397
Author(s):  
Arry Tanusondjaja ◽  
Steven Dunn ◽  
Christopher Miari
Keyword(s):  
Market Share ◽  
Gini Coefficient ◽  
Concentration Ratio ◽  
Market Competition ◽  
Market Concentration ◽  
Gini Coefficients ◽  
Packaged Goods ◽  
Consumer Packaged Goods ◽  
Positive Correlations ◽  
Multiple Metrics

The research compares three different market concentration metrics (Concentration Ratio, Herfindahl–Hirschman Index, and Gini Coefficient) over the share of revenue (market share) and their application in consumer packaged goods markets. The metrics are further extended into measuring the share of the ownership of brands and stock-keeping units, to provide further insights into the nature of market competition. These metrics are reported across 16 categories between 2010 and 2014 from the United Kingdom. The Concentration Ratio results show an average market share of 88% going to the top 10 manufacturers, despite accounting for 19% of all manufacturers on average. Similarly, Gini Coefficients show large disparities in revenue shares across manufacturers (0.85), while the Herfindahl–Hirschman Index classifies most markets as being moderately concentrated. The research highlights the advantage of observing multiple metrics in measuring market concentration, as a single metric is unlikely to convey the nature of market competition. The results show Concentration Ratio for the top 4 or top 10 to be good proxies for Herfindahl–Hirschman Index, while the top 10% or top 20% market concentration can be used as proxies for Gini Coefficients due to their strong positive correlations. Rather than applying onerous Herfindahl–Hirschman Index and Gini Coefficient calculations and requiring the details for all competing entities as required, the result enables researchers and industry practitioners to diagnose the state of the competition by simply calculating the aggregate market share of the top N and the top N% manufacturers.

scholarly journals Market competition and concentration in the world market of concentrated apple juice

2016 ◽  
pp. 129-135 ◽  
Author(s):  
Viktória Kurmai
Keyword(s):  
Market Share ◽  
Apple Juice ◽  
Market Competition ◽  
Detailed Examination ◽  
World Market ◽  
Market Concentration ◽  
Chinese Market ◽  
Secondary Research ◽  
The World ◽  
Comparative Advantages

In the study, I examined the market competition and concentration in the word market of concentrated apple juice. I used RCA index to determine comparative advantages In the world China possesses the strongest comparative advantages. Besides China, Poland, Hungary, Chile, Ukraine, Turkey and Moldova possess strong comparative advantages too. I used Herfindahl-Hirschman-index to determine the market concentration. Based on it – excluding the high Chinese market share between 2006 and 2010 – the world market of concentrated apple juice can be considered as a market with a moderate concentration. Based on the secondary research the study has a detailed examination of cause and effect relationships behind the RCA and HHI index results

scholarly journals MARKET COMPETITION AT THE LEVEL OF AGRICULTURAL PRODUCTS DISTRIBUTION

THE BULLETIN ◽  
2021 ◽  
Vol 3 (391) ◽  
pp. 40-44
Author(s):  
N. A. Gerasymchuk ◽  
L.M. Stepasyuk ◽  
Z.M. Titenko ◽  
I.M. Yermolenko
Keyword(s):  
Market Structure ◽  
Market Share ◽  
Agricultural Sector ◽  
Market Competition ◽  
Market Concentration ◽  
Agricultural Products ◽  
Competitive Environment ◽  
Modern Business ◽  
High Level ◽  
Almost All

The article proved that in the context of European integration, the intensification of competition between producers becomes a major factor of the consolidation and unification of various economic entities, because this is one of the main ways to increase competitiveness, which in turn leads to market concentration. The investigation of the market structure, its type, and hence the economic processes occurring in it, is directly related to determining the state of the competitive environment, its assessment and study of the possibilities of restricting or developing competition. The article reveals the basic principles of development of agricultural enterprises, highlights the problems and prospects of their development in a competitive environment. The importance of concentration indicators in the context of the relationship between monopoly power and the level of concentration of sellers in the market is substantiated. Methodological aspects of using the market concentration index and the Herfindahl-Hirschman index are analysed; their advantages, disadvantages and possibilities of use in the process of market structure research, its type, state of competitive environment and degree of monopolization are revealed. In the process of research the concentration of agricultural markets, it was found that there was a moderate level in almost all types of products in Ukraine, only the pork market is highly concentrated. Analysis of the competitiveness of agricultural products shows that a significant market share is occupied by crops such as sunflower and corn. Studies show that there are certain types of products that have a high level of profitability, including rapeseed and barley, but they occupy a small market share. It is established that to ensure competitive production of agricultural products requires state support of the industry through the provision of tax and credit benefits to enterprises that implement modern business methods. Further prospects for the development of the agricultural sector in Ukraine have been identified.

scholarly journals Analysis of market concentration in the banking sector of the Republic of Serbia

Bankarstvo ◽  
2021 ◽  
Vol 50 (1) ◽  
pp. 134-153
Author(s):  
Marija Stojmenović
Keyword(s):  
Market Share ◽  
Concentration Ratio ◽  
Concentration Index ◽  
Banking Sector ◽  
Market Concentration ◽  
Main Task ◽  
Significant Component ◽  
Banking Market ◽  
The Republic ◽  
Trend Growth

Analysis and measurement of the level of concentration of the banking market is a significant component of the efficient functioning of the economy, an indicator of the development of both the financial and real sectors and an indicator of the degree of competitiveness in the banking sector. This paper focuses on research and analysis of the level of concentration in the banking market of the Republic of Serbia. The main task and goal of this research is to analyze the level of concentration in the banking market of the Republic of Serbia through the prism of two indicators: the concentration ratio of the five largest banks (CR5) and Herfindahl-Hirschman concentration index (HHI), for the period from 2009 to 2019. The results of the research showed the absence of concentration (overall) in the domestic banking market, but also the existence of a trend (growth of market share of the five largest banks) which indicates that, in the future, there could be distortions of competition.

scholarly journals Analisis Pengaruh Struktur Pasar dan Perilaku Pasar Terhadap Kinerja Pasar Pada Bank Umum Syariah di Indonesia dan Malaysia Tahun 2011-2015

2017 ◽  
Vol 4 (5) ◽  
pp. 367
Author(s):  
Rachma Revida ◽  
Dina Fitrisia Septiarini
Keyword(s):  
Panel Data ◽  
Market Share ◽  
Concentration Ratio ◽  
Market Concentration ◽  
Islamic Banks ◽  
Panel Data Regression ◽  
Analysis Technique ◽  
Data Regression ◽  
And Performance

The aim of this study was to analyze the influence of market concentration, market share, and OEOR on profitability in Islamic Banks in Indonesia and Malaysia in 2011 – 2015 using the paradigm of structure, conduct, and performance. The samples of the study consisted of a total 11 Islamic banks in Indonesia and 16 Islamic banks in Malaysia. The analysis technique use in this study was panel data regression using Eviews 7.0 programme. The independence variables of the study were market concentration ratio Herfindahl-Hirchman index), market share, and OEOR, while the dependent variable was the return of asset (ROA). The results of this study indicate that market concentration and market share variables not significantly affect the ROA of Islamic banks in Indonesia and Malaysia, while the OEOR variable has significant effect to the ROA of Islamic banks in Indonesia and Malaysia.

scholarly journals Evaluation of Slovak Automotive Industry Competitiveness Based On Market Concentration Indicators

2020 ◽  
Vol 83 ◽  
pp. 01022
Author(s):  
Vladimír Hojdik
Keyword(s):  
Market Share ◽  
Automotive Industry ◽  
Concentration Ratio ◽  
Slovak Republic ◽  
Market Concentration ◽  
Business Environment ◽  
Herfindahl Index ◽  
Innovation Activities ◽  
Industry Competitiveness ◽  
The Impact

This paper evaluates the concentration of Slovak automotive industry, and its potential impacts on competitiveness and innovation activities of businesses operating within the industry. It analyses the concentration of automotive industry by using relevant metrics as market share, concentration ratio CR3, CR5, CR10 and Herfindahl index. The aim of this paper is to analyze financial results of Slovak automotive businesses, then measure the degree of concentration of whole industry in order to explain industry competitiveness in context of Slovak economy. Finally, the paper should inspire a reader in order to make him consider, what is the impact of strongest automotive companies on whole business environment in Slovak Republic.

Income and Wealth Effects on Consumer Packaged Goods Purchases

2019 ◽  
Author(s):  
Shirsho Biswas ◽  
Pradeep K. Chintagunta ◽  
Sanjay K. Dhar
Keyword(s):  
Wealth Effects ◽  
Packaged Goods ◽  
Consumer Packaged Goods

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

scholarly journals Price Promotions and Popular Events

2018 ◽  
Vol 83 (1) ◽  
pp. 73-88 ◽  
Author(s):  
Wiebke I.Y. Keller ◽  
Barbara Deleersnyder ◽  
Karen Gedenk
Keyword(s):  
The Netherlands ◽  
Price Promotion ◽  
Price Promotions ◽  
Packaged Goods ◽  
Consumer Packaged Goods ◽  
Timing Decisions ◽  
Sales Response ◽  
Event Times

Managers often use popular events, such as the Olympics, to advertise their brands more heavily. Can manufacturers and retailers capitalize on these events to enhance the response to their price promotions? This study empirically examines whether the sales response to price promotions is stronger or weaker around events than at nonevent times, and what factors drive this relative promotion response. Studying 242 brands from 30 consumer packaged goods categories in the Netherlands over more than four years, the authors find that a price promotion offered around a popular event often generates a stronger sales response than the same promotion at nonevent times, with a price promotion elasticity that is 9.3% larger, on average, during events. Still, the variance in relative promotion response across brands and events is high, and the authors identify several drivers that managers should consider before shifting promotions toward event times. Currently, managers often do not take these drivers into account. This study provides guidelines to improve promotional timing decisions in relation to popular events.

scholarly journals Market Concentration and Market Power / Koncentrisanost tržišta i tržišna moć

2015 ◽  
Vol 5 (5) ◽  
pp. 228
Author(s):  
Aleksandar Bogojević
Keyword(s):  
Adverse Effects ◽  
Market Power ◽  
Economic Efficiency ◽  
Free Market ◽  
Market Competition ◽  
Well Being ◽  
Market Concentration ◽  
Relevant Market ◽  
Market Structures ◽  
Market Participants

Contemporary directions of the market liberalization should lead to a bigger number of market participants and to a bigger degree of competition among them. This again, leads to a more diversified offer and to bigger quality products along with higher level of services with cheaper rates. In order to control the mentioned processes, analysis of market concentration is needed, as well as studying and perfection of the methods that allow measurement of market concentration. The degree of market concentration which on a specific market one or more economic subjects have is defined as ‘’market power’’. Economic efficiency on a specific market largely depends on whether non competitive market structures which produce adverse effects on economic efficiency are existent on that market, which ultimately affects on the overall well – being. Conversance of the degree of concentration of a specific (relevant) market is important so that breaching of the market principles can be timely spotted and so that appropriate measures can be taken. Supervision over the market and the market processes, as well as appliance of specific measuring methods of market concentration have the goal of establishing and maintenance of free market competition in which all of the economic subjects participate under the same conditions.

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