master tires were recently introduced into the market by three companies A,B and C at the same time.When the tires were introduced,each firm had an equal share of the master tires market.However during the first year,company A retained 80% of its customers and lost 5% to B, company B lost 10% of its customers to A and none to C,and company C retained 60% of its customers and lost 20% to A
Assuming that the same customer shifting pattern continues into the future,using markov process determine the market share likely to be held by each company at the end of the second year

Question

master tires were recently introduced into the market by three companies A,B and C at the same time.When the tires were introduced,each firm had an equal share of the master tires market.However during the first year,company A retained 80% of its customers and lost 5% to B, company B lost 10% of its customers to A and none to C,and company C retained 60% of its customers and lost 20% to A
Assuming that the same customer shifting pattern continues into the future,using markov process determine the market share likely to be held by each company at the end of the second year

amistre64 · Answer

i believe we setup a distribution matrix such that the columns add to 1

amistre64 · Answer

A       B      C
A  .80   .10  .20
B   .05  .90  .20
C  .15   .00  .60

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