Texas Electronics is a firm that competes in the track switching signal device marketplace. In the international railroad industry, there are about 80,000 TSSD installations. The market is primarily a replacement market, rather than a growth market. About 10% of TSSDs are replaced annually. The industry has recently switched from mechanical to electronic TSSDs. These units sell for an average of $10,000. Texas Electronics currently holds a 17% share of this annual replacement market.
Additionally, you have the following data:
Sales of 4 largest firms in industry
(excluding Texas Electronics :)
SNCF (a French firm) $17,600,000
TCCD (a Turkish firm) $14,450,000
Deutsche Bahn (A German firm) $ 5,175,000
Shinkansen (a Japanese firm) $ 4,325,000
Calculate:
Texas Electronics' Sales
Relative market share
The 4 firm industry concentration
Based on your findings, what are 2 key implications for Texas Electronics