Problem related to the market share dominance


Problem: Your only local competitor has approached you and made you an offer - they want to retire and move to Florida. They have tried to sell their car wash, but the equipment is older and there are not any serious buyers. Their offer - if you pay them a flat fee of $35,000 per year for the next three years - they will exit the market. Based on having market share dominance, you project that your average customers per hour will increase from 2 to 4 (with the same service sales mix) without a reduction in price. Should you accept the deal? Why or why not?

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Other Management: Problem related to the market share dominance
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