Solution
Understanding the set :-
1_ There are 4 smartphone brands in a country:
Azra
Bysi
Cxqi
Dipq
- For each brand, the table shows:
| Term | Meaning |
|---|---|
| Market Share (%) | The percentage of total smartphones sold that belong to this brand. |
| Unit Selling Price (Rs.) | The price at which one smartphone is sold. |
| Profitability (%) | The percentage of selling price that is profit for the company. |
So for example:
a) If Cxqi has a market share of 30%, that means 30 out of every 100 phones sold in 2016 were from Cxqi.
b) If Cxqi’s unit price was Rs. 5,000 and profitability was 20%, it made a profit of Rs. 1,000 per phone.
- What Changed in 2017
a) Total phone sales increased by 40%.
This means more phones were sold overall, so the market grew.
b) Cxqi made a bold move:
It cut its price by 40% to attract more buyers.
As a result, its market share increased by 15% (so if it was 30% in 2016, now it's 45%).
But, its profitability was cut in half (e.g., from 20% to 10%) – probably because of the big discount.
c) Other brands (Azra, Bysi, Dipq):
Each lost 5% market share.
Their price and profitability stayed the same as in 2016.
Let the total market size be 100 units. The sales of Azra, Bysi, Cxqi and dipq would be 40, 25, 15 and 20 units
respectively.
The revenue would be as follows
Azra = lac
Bysi = lac
Cxgi = lac
Dipq = lac
The brand with the highest revenue is Azra.