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June 2015 Q1(i)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › June 2015 Q1(i)

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.
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  • October 25, 2015 at 10:22 am #278825
    cpboon
    Member
    • Topics: 19
    • Replies: 29
    • ☆

    Hi Sir,
    Refer to answer given for June15 Q1(I) MS,Merkland Sportswear. Isn’t right to get market share just to compare footwear business ($150/$273) instead of compare overall business as the strategy of business is to be market leading in Ceeland?

    October 25, 2015 at 2:23 pm #278863
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    “A more appropriate measure in the context of competitive advantage would be market share and in fact, looking at the data on footwear, we have 32% (= 2m/6·25m) of
    this important market which is 55% of our revenues (= $150m/$273m).”

    I’m not sure what you’re getting at. Their market share of the footwear market is, as calculated above 32% and footwear is 55% of their tota; revenues.

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