Ace Motors recently introduced a hybrid automobile named Opus. Since its introdu
ID: 2429674 • Letter: A
Question
Ace Motors recently introduced a hybrid automobile named Opus. Since its introduction, this offering has achieved a 1.2% market share in this market. Ace Motors has conducted research in an effort to assess its opportunity for market share development. The table below indicates consumers' current response at each step along the share performance path for Ace Motors' Opus hybrid automobile as well as the potential performance for each of the share performance metrics:
Share Performance
Metric
Current Performance
Potential Performance
Product Awareness
0.70
0.80
Product Attractiveness
0.45
0.60
Price Acceptable
0.60
0.80
Product Availability
0.55
0.70
Service Experience
0.60
0.75
Answer each question. Include at least a couple sentences of explanation for each one.
1) What is Opus's current market share index?
2) What is Opus's market share potential index?
3) Calculate the share performance gap between the actual and desired customer response.
Share Performance
Metric
Current Performance
Potential Performance
Product Awareness
0.70
0.80
Product Attractiveness
0.45
0.60
Price Acceptable
0.60
0.80
Product Availability
0.55
0.70
Service Experience
0.60
0.75
Explanation / Answer
Answer:
Soln-1)
Share execution relies on the given variables, which will settle on the item deals lastly the piece of the overall industry record which is in respect to some figure. Here we would increase the reaction for each factor to get Current piece of the pie index=0.70*0.45*0.60*0.55*0.60=6.24%
2) Similarly we can figure creation's piece of the pie potential index=0.80*0.60*0.80*0.70*0.75=20.16%, which is ofcourse on an extremely positive side.
3) Share execution hole among genuine and desired(potential) client response=gap in the two offer file figured above=20.16%-6024%=13.92%
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