Analysis of growth, price-recovery, and productivity components (continuation of 12-31).
Suppose that during 2013, the market for DVD players grew 10%. All increases in market share (that is,
sales increases greater than 10%) and decreases in the selling price of the Maxus are the result of Scott’s
strategic actions.
Calculate how much of the change in operating income from 2012 to 2013 is due to the industry-market-size
factor, product differentiation, and cost leadership. How does this relate to Scott’s strategy and its success
in implementation? Explain.
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