You are about to be presented with 10 different markets. Your task is to place these on the pyramid in order showing the market with the highest three firm concentration ratio at the top, down to the market with the lowest 3 firm concentration ratio on the bottom row. You will score points as follow: • If you get the correct market at the top of the pyramid you earn 2 points. • If you get a market on the correct level of the pyramid but not on the correct number you earn 1 point. If you place the firm on the exact number you will receive 2 points! • There are no points it you place the firm on the wrong level of the pyramid. There are 20 points available! • You have 3 minutes to complete the task. Broadband Smartphone manufacturer Car Manufacturer Domestic Energy Supply High Street Banks Soft drinks Supermarkets Video on Demand Click to start timer National Newspapers Wrist watches The market with the highest 3 firm concentration ratio Video on Demand 80 High Street Banks 62 National Newspapers 56.8 The markets with the 4th, 5th and 6th highest 3 firm concentration ratio Domestic Energy Supply 58 Supermarkets 61.4 Wrist watches 46 The markets with the second and third highest 3 firm concentration ratio Smartphone manufacturer 71.6 Broadband 74 Car Manufacturer 33.64 Soft drinks 25.2 The markets with the 7th, 8th, 9th and 10th highest 3 firm concentration ratio 1 2 The market with the highest 3 firm concentration ratio The markets with the second and third highest 3 firm concentration ratio 3 My score: 4 7 5 8 The markets with the 4th, 5th and 6th highest 3 firm concentration ratio 6 9 10 The markets with the 7th, 8th, 9th and 10th highest 3 firm concentration ratio Car Manufacturer Domestic Energy Supply High Street National Smartphone Soft drinks Supermarkets Newspapers manufacturer Banks Video on Demand Wrist watches Car Broadband Manufacturer Domestic Energy Supply High Street National Smartphone Soft drinks Supermarkets Newspapers manufacturer Banks Video on Demand Wrist watches Car Broadband Manufacturer Domestic Energy Supply High Street National Smartphone Soft drinks Supermarkets Newspapers manufacturer Banks Video on Demand Wrist watches Car Broadband Manufacturer Domestic Energy Supply High Street National Smartphone Soft drinks Supermarkets Newspapers manufacturer Banks Video on Demand Wrist watches Car Manufacturer Domestic Energy Supply High Street National Smartphone Soft drinks Supermarkets Newspapers manufacturer Banks Video on Demand Wrist watches Broadband Broadband 1 2 The market with the highest 3 firm concentration ratio The markets with the second and third highest 3 firm concentration ratio 3 My score: 4 7 5 8 The markets with the 4th, 5th and 6th highest 3 firm concentration ratio 6 9 10 The markets with the 7th, 8th, 9th and 10th highest 3 firm concentration ratio Broadband Firm Car Manufacturer Market Share Firm Domestic Energy Supply Market Share Firm High Street Banks Market Share Firm Market Share BT EE 32 4 BMW Ford 6.99 12.82 British Gas EDF Energy 29 11 Barclays HSBC 17 12 Sky 22 Nissan 6.12 EON 14 Lloyds Group 27 Talk Talk 14 Vauxhall 11.64 RBS 18 Virgin Media 20 Volkswagon 9.18 3 firm concentration ratio 3 firm concentration ratio Smartphone manufacturer Firm Market Share Market Share 22.9 6.1 16.9 31.8 Coca Cola Lucozade Pepsi Robinsons 14.7 3.4 7.1 2.8 Sony 6.7 Volvic 2.7 3 firm concentration ratio 15 Santander Firm Asda Morrisons Sainsburys Tesco The Cooperative 3 firm concentration ratio 10 3 firm concentration ratio Supermarkets Apple HTC Nokia Samsung 3 firm concentration ratio 11.5 3 firm concentration ratio Soft drinks Firm Scottish Power SSE National Newspapers Firm Daily Mail Daily Mirror Daily Telegraph Evening Standard The Sun Market Share 20.6 12.1 6 9.8 24.1 3 firm concentration ratio Video on Demand Wrist watches Market Share Firm Market Share 16.4 10.9 16.5 28.5 4oD BBC iPlayer Demand Five ITV Player 20 38 8 22 Fossil LVMH Richemont Rolex 5 4.5 16 12 6.3 Netflix 14 Swatch 18 3 firm concentration ratio Firm 3 firm concentration ratio Market Share Teacher’s Instructions The aim of this activity is to give students some real world data on the level of competitiveness of 10 oligopolistic markets in the UK. The data collected here is the most up-to-date market share data (as of August 2015). The activity can also be used to allow students to practice calculations of 3 firm concentration ratios. Running the activity Method 1 – print out a student sheet (slide 6) for each student. Run the slideshow from slide 1 and explain the student task, giving each student a sheet. Allow students 3 minutes to complete the task (run slide 2 and click to start a 3 minute timer). On completion, go to slide 3 and reveal the answers. Allow students to calculate their score. Discussions after the activity can lead on why the markets might have different levels of competitiveness. Method 2 – as with method 1 but use the coloured print out (slide 4) and a set of cards for each market (slide 5). Students can place cards on their designated number. Note: The data on slide 7 could also be used for students to calculate Herfindahl–Hirschman Index (HHI) for each industry and then a comparison ran between the 5 firm concentration ratio and the HHI. Extension: Before revealing the answers you can ask the students to calculate the 3 firm concentration ratio using the data on slide 7 (print out slide 7 for each student).