Specific state probabi;ities

Example - Retain + Lose in rows and hence 'current market share' is a row matrix
current state 0.6 0.3 0.1 stat at the end of period
0.3 0.45 0.25 0.2 0.5 0.3 0.3075
0.15 0.05 0.8

0.6 0.2 0.15 0.3

0.3 0.5 0.05
0.1 0.3 0.8
stat at the end of period ! State at the end of period 2 State at the end of period 3
0.3275 0.365 0.30475 0.27425 0.421 0.30085 0.2496 0.44955
Steady state probabi;ities

Coefficient matrix variable matrix constant matrix

0.4 -0.2 -0.15 q1 0

-0.3 0.5 -0.05 q2 0
1 1 1 q3 1

1.896552 0.172414 0.293103 q1 0.293103 29% market share of q1 in s

0.862069 1.896552 0.224138 q2 0.224138 22% market share of q2 in s
-2.758621 -2.068966 0.482759 q3 0.482759 48% market share of q3 in s
#N/A
Inverese of coeff matrix
market share of q1 in strady stae
market share of q2 in strady stae
market share of q3 in strady stae
 c f d P1
c 0.85 0.05 0.05 100000 86250
f 0.15 0.15 0.05 20000 18250
d 0 0.8 0.9 5000 20500
P2
75250
16700
33050
Q.2 New razor blades were introduced in the market by three companies around the same time. When these were
-        Company A retained 90% of its customers, lost 3% to B and 7% to C
-        Company B retained 70% of its customers, lost 10% to A and 20% to C
-        Company C retained
SOLVED80% of its customers, lost 10% to A and 10% to C
EQUATIONS
Assuming that no changes occur in the buying habits of the consumers,
1)     What are the market shares of the three companies at the end of year 1 and year 2?
2)     What are the long term market shares of these three companies?

Q1=
Q2=
Q3=
e time. When these were introduced, all three brands had same market share, but during the first year the following changes took pla

a b c p1
year 1 and year 2? 0.9 0.03 0.07 0.333 0.333 0.333 0.3663
0.1 0.7 0.2
0.1 0.1 0.8 p2 0.39294

0.1Q1 - 0.1Q2 - 0.1Q3 = 0

0.3Q2 - 0.03Q1 - 0.1Q3 =0
Q1+Q2+Q3 = 1
Q1+Q2+Q3 = 1
Q1 Q2 Q3
Q1 0.1 -0.1 -0.1 Q1 0
Q2 -0.03 0.3 -0.1 Q2 0
Q3 1 1 1 Q3 1

5 4.441E-16 0.5 0.5

-0.875 2.5 0.1625 0.1625
-4.125 -2.5 0.3375 0.3375
ollowing changes took place

0.27639 0.35631

0.240093 0.365967
 1 -0.75 -0.75 0
-1 1 -0.25 0
1 1 1 1

0.571429 0 0.428571 0.428571

0.342857 0.8 0.457143 0.457143
-0.914286 -0.8 0.114286 0.114286
#N/A #N/A #N/A
Ex. 5.

Local Times Local Herald Local News

Local Times 0.88 0.07 0.05 C.M 0.4 0.3
Local Herald 0.12 0.85 0.03
Local News 0.08 0.1 0.82

Market Share on current

 P1

0.3 0.412 0.313 0.275

hare on current
 CALCULATE STEADY STATE POBABILITY A
ICU WARD OUTPATIENTS
ICU 0.5 0.5 0
WARD 0.1 0.5 0.4
OUTPATIENTS 0.05 0.1 0.85

ICU WARD OUTPATIENTS

ICU 0.4 0.6 0
WARD 0.2 0.5 0.3
OUTPATIENTS 0.05 0.1 0.85
TE STEADY STATE POBABILITY AND ANSWER THE QUESTION