Grimshaw produces mobile (cell) phones for the mass market. In the previous year, its market share rose by $3\%$. The Managing Director is intending to establish a new 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 said: ‘As a multinational, we can locate a new factory anywhere; I want to find out whether the Government of country T will give us any support to build our factory there.’
(a)[2]
What is meant by mass market?
(b)[2]
What is meant by market share?
(c)[4]
Identify and explain two advantages of market research for Grimshaw.
(d)[6]
Identify and explain two advantages to Grimshaw of creating new products.
(e)[6]
Do you think the Government of country T ought to assist businesses such as Grimshaw in setting up in its country? 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 group of (potential) customers willing to buy product(s)” …