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the answer script compares the company’s market share of 10.45% to market leader’s market share of 12% and concluded that the market share is low therefore a problem child(it has high market growth)
my question is that, to decide whether the company has high/low market share, don’t we normally calculate relative market share(10.45%/12%) if market leader’s market share is given in the question?
if this method i stated above could be used, is 0.87 considered as high market share?
Ask the Tutor ACCA SBL
BCG september/december 2017
8y ago#1Correct on both points. It makes little sense to say 12% is high and 10.45% is low. Same comparing relative market shated of 1 and 0.87.
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