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Texas Electronics is a firm that competes in the track switching signal device marketplace. In the international railroad industry, there are about 80,000 TSSD installations. The market is primarily a replacement market, rather than a growth  market. About 10% of TSSDs are replaced annually. The industry has recently switched from mechanical to electronic TSSDs. These units sell for an average of $10,000. Texas Electronics currently holds a 17% share of this annual replacement market.

Additionally, you have the following data:

Sales of 4 largest firms in industry

(excluding Texas Electronics :)

SNCF (a French firm)   $17,600,000

TCCD (a Turkish firm)  $14,450,000

Deutsche Bahn (A German firm)  $ 5,175,000

Shinkansen (a Japanese firm)  $ 4,325,000

Calculate:

Texas Electronics' Sales

Relative market share 

The 4 firm industry concentration

Based on your findings, what are 2 key implications for Texas Electronics

Marketing Management, Management Studies

  • Category:- Marketing Management
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