This report analyzes the market structure in which Cadbury operates and discusses the optimal market structure for the company. It explores the characteristics of the current market structure and how it has affected Cadbury's business. The report also examines the relevance of government interventions in the confectionery industry. The market structure is identified as monopolistic competition, but the report suggests that an oligopoly market would be more beneficial for Cadbury. In an oligopoly market, Cadbury can implement competitive strategies and maintain stable pricing.