See Part A and B, below related to the silicon computer chip market. Part A: You are an analyst at an econometric hedge fund. You are asked to prepare a report on the silicon chip market as a response to this question. In the report (answer): Indicate which metrics would define the premium competitors (i.e. higher margins, growth rates, market share, sales/employee, etc.) Explain why some companies consistently outperform Describe who is the market leader and why (silicon computer chips). Part B: Based on the following metrics for 2 silicon computer chip makers, which is better positioned to gain market share and profitability? Explain.   COMPANY A COMPANY B Number of potential customers in zone 100,000 500,000 Average family income in zone $250,000 $110,000 Government incentives for chip use 10% 18% Transportation accessibility (trucking, rail) score (out of 10) 8/10

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter23: Managing Vertical Relationships
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  1. See Part A and B, below related to the silicon computer chip market.

Part A: You are an analyst at an econometric hedge fund. You are asked to prepare a report on the silicon chip market as a response to this question. In the report (answer):

  • Indicate which metrics would define the premium competitors (i.e. higher margins, growth rates, market share, sales/employee, etc.)
  • Explain why some companies consistently outperform
  • Describe who is the market leader and why (silicon computer chips).

Part B: Based on the following metrics for 2 silicon computer chip makers, which is better positioned to gain market share and profitability? Explain.

 

COMPANY A

COMPANY B

Number of potential customers in zone

100,000

500,000

Average family income in zone

$250,000

$110,000

Government incentives for chip use

10%

18%

Transportation accessibility (trucking, rail) score (out of 10)

8/10

5/10

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