Discuss the following:
Market Share Analysis for Personal Computers Market (all brands are fictitious)
The table presents units sold and market share data for the Personal Computers Industry (first figure for each company is units, second is revenue).
E-Top--10,000--7,500,000
CompEZ--15,000--12,000,000
BEST--2,000--1,700,000
Moonwalk--8,000--8,000,000
CompBrain--8,000--12,000,000
Market Total--43,000 units--41,200,000 revenue
1. Calculate Unit Market Share of E-Top Computers
2. Calculate Revenue Market Share of E-Top Computers
3. Calculate Relative Market Share for E-Top Computers (both in $ and in units).
4. What do these measures of competitiveness and comparative strength tell you about the E-Top company and the industry in which it operates?
Just as a reminder:
Market share is company's overall sales (in dollars or in units) expressed as a percentage of overall market (measured in dollars or in units). It serves as measure of competitiveness.
Relative Market Share is company's overall sales (in dollars or in units) measured in relation to its largest competitor. It serves as measure of comparative market strength.