Using relative market share to assess a business's competitive strength is analytically superior to straight percentage...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Using relative market share to assess a business's competitive strength is analytically superior to straight percentage measures of market share because relative market share is a reliable indicator of the extent to which a business unit enjoys strong product differentiation vis-a-vis rivals (signaled by a relative market share above 1.0) or suffers from weak product differentiation vis-a-vis rivals (signaled by a relative market share below 0.50). O is a better indicator of competitive strength than is a simple percentage measure of market share--for instance, a company with a 20% market share is in a much stronger competitive position if its largest rival has a market share of 10% (which means its relative market share is 2.0) than it is if its largest rival has a 30% market share (in which case the company's relative market share is only 0.67). O is a more reliable indicator of a business unit's revenue growth and profit potential. O is a reliable indicator of the extent to which a business unit enjoys competitive advantage (signaled by a relative market share above 1.0) or suffers from competitive disadvantage (signaled by a relative market share below 0.25) is a reliable indicator of the extent to which a business unit enjoys a strong brand image and reputation with buyers (signaled by a relative market share above 0.75) or a weak brand image and reputation with buyers (signaled by a relative market share below 0.30) Using relative market share to assess a business's competitive strength is analytically superior to straight percentage measures of market share because relative market share is a reliable indicator of the extent to which a business unit enjoys strong product differentiation vis-a-vis rivals (signaled by a relative market share above 1.0) or suffers from weak product differentiation vis-a-vis rivals (signaled by a relative market share below 0.50). O is a better indicator of competitive strength than is a simple percentage measure of market share--for instance, a company with a 20% market share is in a much stronger competitive position if its largest rival has a market share of 10% (which means its relative market share is 2.0) than it is if its largest rival has a 30% market share (in which case the company's relative market share is only 0.67). O is a more reliable indicator of a business unit's revenue growth and profit potential. O is a reliable indicator of the extent to which a business unit enjoys competitive advantage (signaled by a relative market share above 1.0) or suffers from competitive disadvantage (signaled by a relative market share below 0.25) is a reliable indicator of the extent to which a business unit enjoys a strong brand image and reputation with buyers (signaled by a relative market share above 0.75) or a weak brand image and reputation with buyers (signaled by a relative market share below 0.30)
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below Yes that is correct Relative market share provides a more comprehensive and insightful as... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these finance questions
-
What are some of the key trends and challenges in the evolution of operating systems, particularly with the rise of cloud computing, edge computing, and distributed systems? How do these trends...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
-
This bar chart displays the demographics (age group and gender) of a Business Analysis class Business Analysts Students 23-33 3410 M lem How many male students are in the class? 65 80 130 50
-
Reflect on the purpose and practical application of taxi market regulation by city authorities. What does this type of regulation accomplish? What are the drawbacks? How has this allowed Uber to...
-
Chlorine is used to disinfect swimming pools. The accepted concentration for this purpose is 1 ppm chlorine, or 1 g of chlorine per million grams of water. Calculate the volume of a chlorine solution...
-
Lucenay Interiors, a furniture store, was formed on January l, 2008, when lucenay issued common stock for \($400,000.\) Early in January, Lucena) made the following cash payments: a. \($100,000\) for...
-
Describe the key uses of CPM and Gantt charts.
-
Old Country Links, Incorporated, produces sausages in three production departments-Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed...
-
The diagram below represents a process where two components are made at stations A1 and A2 (one component is made at A1 and the other at A2). These components are then assembled at station B and...
-
Proprinting, Ltd is Australian owned and specializes in the digital printing. Proprinting provides online printing and run by qualified tradesmen who print the jobs to perfection. The services...
-
Brieflydescribe the three main concepts on which statistical thinking is based. 2.Brieflydescribe what is meant by random variation in statistical process control. 3. Briefly describe what is meant...
-
In a Las Vegas casino, an employee discovered a flaw in the accounting system. The accounts payable clerk discovered that he was able to change the names of vendors in the computer system to his...
-
On January 13, at the end of the second weekly pay period of the year, a company's payroll register showed that its 32 employees had earned $23,570 of sales salaries and $7,830 of office salaries....
-
Identify an example of the application of statistical process control in a business context for the manufacturing industry. Describe how statistical process control was used to improve process....
-
A company recently reported $9.7 million of net income. Its EBIT was $15.5 million, and its federal tax rate was 24% (ignore any possible state corporate taxes). What was its EBT? What was its Tax...
-
As a manager to one of the distribution company, you received an order to supply some customers with your company's products as in the table below; Warehouses Destinations X (25) Z(15) 5 5 4 9 C (25)...
-
What are bounds and what do companies do with them?
-
Identify three responsibility centers in a fast-food restaurant and explain how they may interact.
-
Frits Seegers, President of Citibank California, was meeting with his management team to review the performance evaluation and bonus decisions for the California branch managers. James McGarans...
-
When should an organization use a cash bonus?
-
What are the advantages of resource leveling?
-
Which of the following statements is false? A. The highest need in Maslows pyramid is called selfactualization. B. Most people today prefer managers who follow Theory X versus Theory Y. C. Herzberg...
-
Some project managers like to assess team performance by using a technique known as MBWA, which stands for _______________. A. management by wondering aloud B. management by wandering around C....
Study smarter with the SolutionInn App