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Telecom Company Formula
Posted: Wed Aug 21, 2019 1:11 am
by WardenCommander
What is Telecom Company market share formula?
I have telecom company that holds 63% of market for some time now, my price is 8,1$
and there are 2 more telecom companies in city:
1. that holds 29.07% of market with price 11,99$
2. that holds 7,94% of market with price 12,92$
my question is what is formula for market share, and why I dont have more as my price is lower then others.
Re: Telecom Company Formula
Posted: Tue Aug 27, 2019 10:16 pm
by de1irium
the stock price of a company does not reflect its profitability or market dominance. In order to have a good idea of the value of a company, you should take a look at the Market Capitalization. the stock price is simply the Mkt Capitalization / number of shares. If all companies were equal, the one with the highest stock price would be the one with the less number of shares issued.
Re: Telecom Company Formula
Posted: Wed Aug 28, 2019 10:47 am
by WardenCommander
de1irium wrote: Tue Aug 27, 2019 10:16 pm
the stock price of a company does not reflect its profitability or market dominance. In order to have a good idea of the value of a company, you should take a look at the Market Capitalization. the stock price is simply the Mkt Capitalization / number of shares. If all companies were equal, the one with the highest stock price would be the one with the less number of shares issued.
What that has to do with my question?
Re: Telecom Company Formula
Posted: Wed Aug 28, 2019 11:41 am
by MagnusA
Maybe because de1irium assumed the prices you listed were stock prices. That was how I read your question as well.
Or you question was not clear enough.
Re: Telecom Company Formula
Posted: Wed Aug 28, 2019 3:27 pm
by David
As in the real life, not all customers will switch to another telecom when they see a better price. There is significant inertia there. This reflects the fact that the first move advantage is more apparent in the telecom industry.