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Summary A-Level Edexcel Economics A Case Study for Microeconomics $7.32
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Summary A-Level Edexcel Economics A Case Study for Microeconomics

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Case study on Gum industry for Pearson Edexcel Economics A Microeconomics side, can be utilized in essay answers, specifically when asked to "refer to an industry of your choice". Suitable for both AS-Level and A-Level Economics students.

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  • 2 de septiembre de 2024
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  • 2023/2024
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Industry Profile: Gum Industry
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Market Type
Chewing Gum industry is a highly contestable oligopoly

Companies Wrigley and Cadbury account for 60% of the market share, with
other companies such as Lotte, Perfetti Van Melle and Hershey’s following
close behind

Dominated by a few firms but have hundreds of small firms producing as well

Low barriers to entry and low sunk costs cause it to be highly contestable

Highly differentiated products:

Sugar Chewing Gum (with multiple flavours)

Sugar-Free Chewing Gum (with multiple flavours)

Anti-smoking Gum (with multiple flavours)

Biodegradable Gum (with multiple flavours)

Chewing Gum causes a direct negative consumption externality of litter on
roads and pavements

Key Market Driver - Increasing Demand for Functional Chewing Gum,
especially in youth groups

Key Market Restraint - Negative side effects such as headaches caused by
Chewing Gum


Segmentation
By Type
Sugar Chewing Gum (with multiple flavours)

Sugar-Free Chewing Gum (with multiple flavours)



Industry Profile: Gum Industry 1

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