Scenario 4-2. Petro is considering opening a new small business called Petro's Playground. It will be an inside playground with climbing equipment, jungle gym, pit of balls, slides, and swings. Petro's closest competition has been in business for four years and provides quality service along with the fun of the playground. The competition is located four miles away in a large city and Petro is hoping to acquire some of his competition's market share by providing lower prices and more diversity in playground equipment.
-In Scenario 4-2, the market share that Petro hopes to capture refers to
A) Petro's sales in relation to the sales of his competitors
B) Petro's sales this year compared to next year
C) Petro's sales this year compared to the next five years
D) Petro's competitors' sales compared to industry sales

Question

Quizplus · Accepted Answer

Market share refers to a company's sales in relation to the sales of its competitors. Petro aims to capture a portion of his competitor's market share by offering lower prices and more diverse playground equipment.