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.
The new market share, selling prices and profitability for the different brands are
| Brand | Market share | Selling price | Profitability |
| Azra | 35 | 15,000 | 10 |
| Bysi | 20 | 20,000 | 30 |
| Cxqi | 30 | 18,000 | 20 |
| Dipq | 15 | 25,000 | 30 |
Now the total sales is 140 units. (Increase of 40%)
The profits are as follows
Azra - 49 x 15,000 × 10/100 = 73,500
Bysi - 28 x 20,000 × 30 / 100 = 1,68,000
Cxgi – 42 x 18,000 × 20 / 100 = 1,51,200
Dipq - 21 x 25,000 × 30 / 100 = 1,57,500
The profit is the highest for Bysi
The profits increased for Azra (60,000 – 73,500) for Bysi (1,50,000 – 1, 68,000) and Dipq (1,50,000 – 1,57,500)