Relative Market Share Is

question 26

Multiple Choice

Relative market share is:

• A) calculated by dividing a company's percentage share of total industry sales volume by the percentage share held by its largest rival.
• B) calculated by adjusting a company's revenue share up or down by a factor proportional to whether their quality/customer service factors are above/below industry averages.
• C) calculated by dividing a company's market share (based on dollar volume)by the industry-average market share.
• D) particularly useful in identifying cash cows,which have big relative market shares (above 1.0),and cash hogs,which have low relative market shares (below 0.5).
• E) calculated by subtracting the industry-average market share (based on revenue)from the company's market share to highlight relative share above/below the industry average.This amount is a better indicator of a business's competitive strength than is just looking at the firm's market share percentage.

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Definitions:

Legitimate Power

A type of power that is derived from having a formal position or authority in an organization, allowing for the control of resources and decision-making.

Power Holder

An individual or entity that possesses the authority or influence to make decisions, direct others, and enforce rules within a given context.

Influence in Motion

The dynamic process through which individuals or groups exert power to sway or direct the behavior or beliefs of others.

Forecasting Uncertainties

The acknowledgment and analysis of the unpredictability inherent in attempting to predict future events, particularly in complex systems.