Determine the market shares of the three companies

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Reference no: EM132921634

Papaya Ltd, Qwetu Ltd and Raia Ltd deal in the production of hair shampoos. On 1 January 2018, the three companies introduced a similar new hair shampoo in the market. Prior to the introduction of the new hair shampoo, the three companies had an equal share of the new market. A survey conducted on the market shares of the three companies as at 31 December 2019 revealed the following information:

1. Papaya Ltd had retained 90% of its customers but had lost 3% and 7% of its customers to Qwetu Ltd and Raia Ltd respectively.

2. Qwetu Ltd had retained 75% of its customers but had lost 10% and 15% of its customers to Papaya Ltd and Raia Ltd respectively.

3. Raia Ltd had retained 80% of its customers but had lost 5% and 15% of its customers to Papaya Ltd and Qwetu Ltd respectively.

4. The buying habits of the customers during the year remained the same.

Determine the market shares of the three companies after 1 year, 2 years and in the the long run

Reference no: EM132921634

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