Respuesta :
Market share is a crucial measure of how competitive a company is. A company's profitability may increase as a result of growing its market share. This is due to the fact that as businesses grow larger, they may scale as well, allowing them to cut their prices and restrain the expansion of their rivals. So if I am the CEO of a corporation I would make a trade off decision for optimizing for market share.
How does profitability depend on market share?
In particular, a company is more likely to have larger profit margins, a lowering purchases-to-sales ratio, a declining marketing cost as a percentage of sales, and higher quality and more expensive items as market share increases.
What does "profitability" mean to you?
A company's profitability is determined by how much money it makes compared to how much it spends. More effective businesses will make more money relative to their costs than less effective businesses, which must spend more to make the same amount of money.
To learn more about Market share visit:
https://brainly.com/question/15518112
#SPJ4
