The Small-A Corporation is currently competing with a first mover which owns 90% of the market share. An aggressive marketing strategy is expected to entice 10% of the competitor’s market share to shift to Small-A every month while the remaining 90% will not. As a new firm, Small-A expects 30% of his market share to shift back to the competitor every month. a. What would Small-A’s market share be after one month? b. What would the competitor’s share be after one month? c. What would Small-A’s market share be after two months? d. What would the competitor’s share be after two months?
The Small-A Corporation is currently competing with a first mover which owns 90% of the market share. An aggressive marketing strategy is expected to entice 10% of the competitor’s market share to shift to Small-A every month while the remaining 90% will not. As a new firm, Small-A expects 30% of his market share to shift back to the competitor every month. a. What would Small-A’s market share be after one month? b. What would the competitor’s share be after one month? c. What would Small-A’s market share be after two months? d. What would the competitor’s share be after two months?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The Small-A Corporation is currently competing with a first mover which owns 90% of the market share. An aggressive
marketing strategy is expected to entice 10% of the competitor’s market share to shift to Small-A every month while the
remaining 90% will not. As a new firm, Small-A expects 30% of his market share to shift back to the competitor every
month.
a. What would Small-A’s market share be after one month?
b. What would the competitor’s share be after one month?
c. What would Small-A’s market share be after two months?
d. What would the competitor’s share be after two months?
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