See Part A and B, below related to the silicon computer chip market. Part A: You are an analyst at an econometric hedge fund. You are asked to prepare a report on the silicon chip market as a response to this question. In the report (answer): Indicate which metrics would define the premium competitors (i.e. higher margins, growth rates, market share, sales/employee, etc.) Explain why some companies consistently outperform Describe who is the market leader and why (silicon computer chips). Part B: Based on the following metrics for 2 silicon computer chip makers, which is better positioned to gain market share and profitability? Explain. COMPANY A COMPANY B Number of potential customers in zone 100,000 500,000 Average family income in zone $250,000 $110,000 Government incentives for chip use 10% 18% Transportation accessibility (trucking, rail) score (out of 10) 8/10
See Part A and B, below related to the silicon computer chip market. Part A: You are an analyst at an econometric hedge fund. You are asked to prepare a report on the silicon chip market as a response to this question. In the report (answer): Indicate which metrics would define the premium competitors (i.e. higher margins, growth rates, market share, sales/employee, etc.) Explain why some companies consistently outperform Describe who is the market leader and why (silicon computer chips). Part B: Based on the following metrics for 2 silicon computer chip makers, which is better positioned to gain market share and profitability? Explain. COMPANY A COMPANY B Number of potential customers in zone 100,000 500,000 Average family income in zone $250,000 $110,000 Government incentives for chip use 10% 18% Transportation accessibility (trucking, rail) score (out of 10) 8/10
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter23: Managing Vertical Relationships
Section: Chapter Questions
Problem 1MC
Related questions
Question
- See Part A and B, below related to the silicon computer chip market.
Part A: You are an analyst at an econometric hedge fund. You are asked to prepare a report on the silicon chip market as a response to this question. In the report (answer):
- Indicate which metrics would define the premium competitors (i.e. higher margins, growth rates, market share, sales/employee, etc.)
- Explain why some companies consistently outperform
- Describe who is the market leader and why (silicon computer chips).
Part B: Based on the following metrics for 2 silicon computer chip makers, which is better positioned to gain market share and profitability? Explain.
COMPANY A |
COMPANY B |
|
Number of potential customers in zone |
100,000 |
500,000 |
Average family income in zone |
$250,000 |
$110,000 |
Government incentives for chip use |
10% |
18% |
Transportation accessibility (trucking, rail) score (out of 10) |
8/10 |
5/10 |
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