On January 01 (this year), Bakery A had 40 per cent of its local market share while the other two bakeries B and C had 40 per cent and 20 per cent, respectively, of the market share. Based upon a study by a marketing research firm, the following facts were compiled. Bakery A retains 90 per cent of its own customers, while gaining 5 per cent of Bs customers and 10 per cent of Cs customers. Bakery B retains 85 per cent of its customers, while gaining 5 per cent of As customers and 7 per cent of Cs customers. Bakery C retains 83 per cent of its customers and gains 5 per cent of As customers and 10 per cent of Bs customers. What will each firms share be on January 1 next year and what will each firms market share be at equilibrium?

Answer rating: 100% (QA)

To solve this problem we can use a system of linear equations to represent the changes in market sha... View the full answer