Use the following data to

Question 1

Use the following data to compute the relative market share of each brand and its position on the Growth­Share Matrix if the market growth rate is 13.4%. Which of the following is correct?

Market Share

Nike34.8%

Adidas27.6%

Puma23.2%

1. Puma ­ 0.67? Question Mark
2. Adidas ­ 1.19? Star
3. Nike ­ 1.26? Cash Cow
4. Puma ­ 0.67? Star
5. Nike ­ 0.79? Question Mark

Question 2

Eddie Bauer wants to expand its market share, which is currently 30%. Its current “share of voice” is also 30%. If the company wants to have a market share of 40% by the end of the year, what “share of voice” does it need to have during the year?

1. 10%
2. 30%
3. 60%
4. 45%
5. 40%

Question 3

Why would it be unwise for Target to try to gain more market share by matching Wal­Mart’s low prices?

1. The lower prices would damage Target’s reputation as an exclusive store.
2. The target would go bankrupt immediately.
3. This is only an effective strategy if a firm has the lowest cost in the industry, which Wal­Mart has.
4. It would not be unwise. Target’s competitive advantage is its low-cost logistics system and they should capitalize on this immediately.