Market Share and Company Position Analysis Assignment Help
Questions
Q. 1. Provide an example of any two leading companies from the same industry, which are competing directly for market share. Give a short profile.
Q.2. Suppose, if you are the manager of one of these companies, what pricing policy will you adopt to be in the first position? Why?
Q. 3. When the whole sector of the market is occupied by the little number of big corporations who share the leadership, what do we call this type of market structure? Explain in details the benefits for the leading company anddisadvantage of such situation on final consumers.
Save your higher grade with acquiring Market Share and Company Position Analysis Assignment Help solution & quality homework writing services of Expertsminds.com
Q. 1. Provide an example of any two leading companies from the same industry, which are competing directly for market share. Give a short profile.
Mercedes-Benz and BMW from the car manufacturing industry are considered as one of the two leading organizations around the world, which are competing directly for the market share.
It has been seen that in prior year Mercedes-Benz becomes the international best-selling first-class car brand for the third successive year. This automobile company developed global sales by a smaller amount than a proportion point to around 2,310,185 cars that was the 8th successive best year for this German company. This organization sales were specifically helped by the constant effective sales in China. Smart sales were also 4.6% lower around 128,802 deliveries globally in 2018 (Bekker, 2019).
Figure 1: Sales per brand and main market in 2018
(Source: Bekker, 2019)
Whereas, it could be seen that in the previous year, BMW developed sales of their electrified cars by around 38.4% to 142,617 deliveries of the Mini cars and BMW globally (Bekker, 2019). It has been also calculated that more that partial of all the electrified cars were traded in Europe in the previous year but the USA is remained the solitary largest state market for the company. The electrified cars took around 6% market share of the company formed globally in 2018 (Bekker, 2019). Instead of being in its 5th year of manufacture, sales of the i3 sustained to develop. On the other hand, it could be said that since 2010, sales of Mercedes-Benz increase up to 96.7% with the CAGR of 12%. During the same course of time, international light cars market increase around 73.3 million to 94.3 million along with a CAGR of 3.5%. Therefore, this organization has been able to keep sharply developed its market share in this time (focus2move.com, 2019). As per the future predictions, in the year 2019-2025, Mercedes would develop sales at 3.1 million units.
Figure 2: Sales and market share of BMW and Mercedes-Benz
(Source: Costello, 2019)
Q.2. Suppose, if you are the manager of one of these companies, what pricing policy will you adopt to be in the first position? Why?
The penetration pricing strategy would be in the first position. This pricing strategy makes brands enter a marker at a reasonably lower cost than their existing competitors in the same market. These types of pricing policies mainly applied for increasing more consumers and make the consumer shift from the current brands present in the market (Spann, Fischer & Tellis, 2014). With this type of pricing strategy mainly those consumers could be targeted whose purchasing decisions are mainly based on product prices. Since, premium brands have higher market share already, it puts organizations at the competitive edge. Organizations with high market share tend to receive effective prices from the supplies, as their big order volumes develop their purchasing powers. Therefore, penetration pricing strategy would be good if effective applied into the target markets.
Q. 3. When the whole sector of the market is occupied by the little number of big corporations who share the leadership, what do we call this type of market structure? Explain in details the benefits for the leading company and disadvantage of such situation on final consumers.
When an entire sector of the marker is occupied by the little number of large companies who share the leadership, then the market structure if called oligopoly. When a market is dominated between a few corporations, this is said to be highly concentrated. Though, only a few organizations were in leadership, this is possible that other small forms also operate in the market (Shibata, 2014).
Benefits for the leading company
Although, this type of market structure could adopt a policy that leads to inefficiencies and a lack of invention, this could also process to the competitive results if it so chooses. When the organizations engage in using this benefit for them, them the economic outcome is like what is existing under more competitive market structure. On the other hand, when an economy realizes an oligopoly in some ways, then this could make a vast set of products and operates through a desire to be innovative (Shibata, 2014). As the level of profits if frequently super-normal in this condition, the extra profits could funnel to the research and development projects, which could assist customers in a various way.
Disadvantages for final consumers
When there are only a few corporations, which are active in a sector, then this type of higher concentration levels in the society could limit the amount of choices that customers receive. The other main disadvantage is decision-making biases and illogical behavior. This type of disadvantage could even increase customers to make purchasing decisions that add no utility their lives (Shibata, 2014). There are even cases when the corporations involved in this type of market structure would encourage inefficient fiscal decisions to their consumers as their actions would increase revenues and organizational profit margins.
Expertsminds.com accepts instant and short deadlines order for Market Share and Company Position Analysis Assignment Help service – order today for excellence!