The Market Flashcards
1
Q
Growing and shrinking of a market
A
In a growing market, several firms can grow easily.
In a shrinking market competition can be heavy - there are fewer customers to go around. Firms can diversify or they may want to leave the market completely
2
Q
How to calculate market share
A
Market share =
Sales
Divide by
Total market size x 100%
3
Q
Calculate market growth
A
New market size - old market size
Divided by
Old market size x100
4
Q
What is market share?
A
Is the percentage of sales in a market that is made by a firm
- letting market sure go down is not good - it means competitors are gaining an advantage
