Grimshaw makes mobile (cell) phones for the mass market. In the previous year, its market share rose by 3%. The Managing Director is considering opening a fresh factory in country T so that it can supply the mobile phone market there for the first time. Grimshaw intends to launch a new model of mobile phone. The Managing Director has requested market research. He stated: ‘Because we are a multinational, we could establish a new factory in any location; I want to find out whether the Government of country T would give us any assistance to construct our factory there.’
(a)[2]
What does the term ‘mass market’ mean?
(b)[2]
How would you define ‘market share’?
(c)[4]
Identify and explain two advantages of market research for Grimshaw.
(d)[6]
Identify and explain two advantages for Grimshaw of developing new products.
(e)[6]
Should the Government of country T support businesses such as Grimshaw in setting up there? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A large pool of potential customers who are willing to buy the product” …