10 Questions
What does market share analysis indicate?
How well a firm is doing compared to its competitors
According to Givon, Mahajan, and Muller, what are the proposed factors to estimate market share in the software industry?
Unit or dollar sales, user base, market definition, scope of denominator, time frame length, product definition
What does total market size refer to?
The annual business volume in currency or in number of transactions
What does market growth rate refer to?
The compounded annualized growth rate taken over a period of 3 to 5 years
What are some of the factors that determine the market according to the text?
Price, quality, speed of service, ease of maintenance, points of distribution
What does market share analysis help identify?
The top players, the middle, and the 'minnows' of the marketplace based on the volume of business conducted
What is the scope of denominator in estimating the value of market share?
The other brands included in the market definition
What does market segmentation involve?
Mapping on quality and price parameters to identify crowded and relatively empty spaces by service providers
What is the Total Market Size in market analysis?
The annual business volume in currency or in number of transactions
What does Market Growth Rate refer to in market analysis?
The Compound Annual Growth Rate taken over a period of 3 to 5 years
Study Notes
Market Share Analysis
- Market share analysis helps identify a company's position in the market and its competitive advantage.
Factors Affecting Market Share
- Givon, Mahajan, and Muller propose the following factors to estimate market share in the software industry:
- Customer switching costs
- Competitor retaliatory response
- Customer satisfaction
- Market turbulence
Total Market Size
- Total market size refers to the total sales revenue of a particular market or industry.
Market Growth Rate
- Market growth rate refers to the percentage change in total market size over a certain period.
Market Determinants
- The following factors determine the market:
- Supply and demand
- Customer needs and preferences
- Competitor actions
- Government regulations
Market Share Estimation
- The scope of the denominator in estimating the value of market share includes all the relevant products, services, or customers that make up the total market size.
Market Segmentation
- Market segmentation involves dividing a larger market into smaller, more defined groups based on demographics, needs, or preferences to target specific segments with tailored products or services.
Test your knowledge of market share analysis with this quiz based on Givon, Mahajan, and Muller's research on the software industry. Explore the six factors proposed to estimate market share and enhance your understanding of this vital component of market analysis.
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