90.2K

Verified Solution

Link Copied!

Question 1 (Total 12 points) a) (6 points) Alpha Inc. has two lines of business, namely medical instruments, and pharmacy. You are provided with market shares of top companies in the two lines of business over time: re 11 ace Market Share in Medical Instruments (Entries Are Market Share) Company 2002 Alpha Inc. 25% Beta Inc. Gamma Inc. Other companies 2011 27% 34% 27% 12% 2005 2008 27% 26% 35% 33% 35% 30% 28% 29% 10% 12% 10% Market Share in Pharmacy (Entries Are Market Share) Company 2002 Alpha Inc. 2005 2008 21% Sigma Inc. 18% 14% 12% Delta Inc. 15% 12% Omicron Inc. 14% Omega Inc. 15% 17% Other companies 50% 55% 57% 2011 12% 15% 13% 60% Question: Given the information above, suggest whether (i) firms in medical instrument industry or (ii) firms in pharmacy industry are likely to have stronger pricing power. Provide two reasons to support your answers. Question 1 (Total 12 points) a) (6 points) Alpha Inc. has two lines of business, namely medical instruments, and pharmacy. You are provided with market shares of top companies in the two lines of business over time: re 11 ace Market Share in Medical Instruments (Entries Are Market Share) Company 2002 Alpha Inc. 25% Beta Inc. Gamma Inc. Other companies 2011 27% 34% 27% 12% 2005 2008 27% 26% 35% 33% 35% 30% 28% 29% 10% 12% 10% Market Share in Pharmacy (Entries Are Market Share) Company 2002 Alpha Inc. 2005 2008 21% Sigma Inc. 18% 14% 12% Delta Inc. 15% 12% Omicron Inc. 14% Omega Inc. 15% 17% Other companies 50% 55% 57% 2011 12% 15% 13% 60% Question: Given the information above, suggest whether (i) firms in medical instrument industry or (ii) firms in pharmacy industry are likely to have stronger pricing power. Provide two reasons to support your answers

Answer & Explanation Solved by verified expert

See Answer