Homework Help is Here – Start Your Trial Now!
Business
Operations Management
The personal computer industry is very fast moving technology that provides mohvane customers to upgrade with new computers every few years. Brand loyalty is very importa companies try to do things to keep their customers happy. However, some current customer Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the chares of the market. People who own Doorway computers will buy another Doorway in the urchase 80% of the time, while the rest will switch to the other companies in equal prope Dwners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway vill buy Compaq. About 70% of the Compaq owners will make Compaq their next purcha= 0% will buy Doorway and the rest will buy Bell. t the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares?

The personal computer industry is very fast moving technology that provides mohvane customers to upgrade with new computers every few years. Brand loyalty is very importa companies try to do things to keep their customers happy. However, some current customer Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the chares of the market. People who own Doorway computers will buy another Doorway in the urchase 80% of the time, while the rest will switch to the other companies in equal prope Dwners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway vill buy Compaq. About 70% of the Compaq owners will make Compaq their next purcha= 0% will buy Doorway and the rest will buy Bell. t the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
Q.4. The personal computer industry is very fast moving technology that provides motivation to customers to upgrade with new computers every few vears. Brand loyalty is very important a companies try to do things to keep their customers happy. However, some current customer may Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the major Shares of the market. People who own Doorway computers will buy another Doorway in their next purchase 80% of the time, while the rest will switch to the other companies in equal proportons. Owners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway and 5% will buy Compaq. About 70% of the Compaq owners will make Compaq their next purchase while 20% will buy Doorway and the rest will buy Bell. At the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares? b. If each brand currently has 200,000 customers who plan to buy a new computer in the next year, how many computers of each type will be purchased? What is the long-run market share of each of the three companies? c.
Transcribed Image Text:Q.4. The personal computer industry is very fast moving technology that provides motivation to customers to upgrade with new computers every few vears. Brand loyalty is very important a companies try to do things to keep their customers happy. However, some current customer may Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the major Shares of the market. People who own Doorway computers will buy another Doorway in their next purchase 80% of the time, while the rest will switch to the other companies in equal proportons. Owners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway and 5% will buy Compaq. About 70% of the Compaq owners will make Compaq their next purchase while 20% will buy Doorway and the rest will buy Bell. At the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares? b. If each brand currently has 200,000 customers who plan to buy a new computer in the next year, how many computers of each type will be purchased? What is the long-run market share of each of the three companies? c.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS