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Indicative content guidanceAnswers must be credited by using the level descriptors (below) in line withthe general marking guidance. The indicative content below exemplifies someof the points that candidates may make but this does not imply that any ofthese must be included. Other relevant points must also be credited.Quantitative skills assessed:QS9: Interpret, apply and analyse information in written, graphical andnumerical formsKnowledge, Application, Analysis, Evaluation – indicative content• Market share is the percentage of an industry/market's total salesearned by a particular company over a specified time period• Increasing global market share from 6% is important to Realmebecause it is a measure of the consumers' preference over otherbrands such as Apple and Samsung. Increased market share is likelyto mean more sales/profit for Realme• Realme’s market share is an indicator of how well it is performing inrelation to its competitors. An increase in its share will attract newcustomers who may become loyal to its business• Higher market share may give Realme a competitive advantage.Companies with higher market share have increased buying powerand may benefit from economies of scale which may allow them topossibly reduce its prices/or increase profitability• However, it may be very difficult and unrealistic to take market sharefrom leaders such as Apple and Samsung who have been establishedin the market for many years, unlike Realme that was only foundedin 2018• Realme may have to spend considerably more than establishedbrands in order to compete for market share. This could increase itscosts and reduce its profitability• Other objectives may be more important to Realme such as profitmaximisation or the innovation of its phones• It depends on the growth of the global smartphone market as towhether Realme should pursue this objective

Question

Indicative content guidanceAnswers must be credited by using the level descriptors (below) in line withthe general marking guidance. The indicative content below exemplifies someof the points that candidates may make but this does not imply that any ofthese must be included. Other relevant points must also be credited.Quantitative skills assessed:QS9: Interpret, apply and analyse information in written, graphical andnumerical formsKnowledge, Application, Analysis, Evaluation – indicative content• Market share is the percentage of an industry/market's total salesearned by a particular company over a specified time period• Increasing global market share from 6% is important to Realmebecause it is a measure of the consumers' preference over otherbrands such as Apple and Samsung. Increased market share is likelyto mean more sales/profit for Realme• Realme’s market share is an indicator of how well it is performing inrelation to its competitors. An increase in its share will attract newcustomers who may become loyal to its business• Higher market share may give Realme a competitive advantage.Companies with higher market share have increased buying powerand may benefit from economies of scale which may allow them topossibly reduce its prices/or increase profitability• However, it may be very difficult and unrealistic to take market sharefrom leaders such as Apple and Samsung who have been establishedin the market for many years, unlike Realme that was only foundedin 2018• Realme may have to spend considerably more than establishedbrands in order to compete for market share. This could increase itscosts and reduce its profitability• Other objectives may be more important to Realme such as profitmaximisation or the innovation of its phones• It depends on the growth of the global smartphone market as towhether Realme should pursue this objective

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The text you provided seems to be a set of guidelines for answering a question about the importance of increasing global market share for a company called Realme. Here's a step-by-step response:

  1. Definition: Market share is the percentage of total sales in an industry that a specific company earns over a certain time period.

  2. Importance: For Realme, increasing its global market share from 6% is crucial as it indicates consumer preference over other brands like Apple and Samsung. A higher market share could lead to increased sales and profits.

  3. Performance Indicator: Realme's market share shows how well it's doing compared to its competitors. If it increases, it could attract new customers who might become loyal to the brand.

  4. Competitive Advantage: A higher market share could give Realme a competitive edge. Companies with a larger market share have more buying power and can benefit from economies of scale, which could allow them to lower prices or increase profitability.

  5. Challenges: However, it might be difficult for Realme to take market share from established leaders like Apple and Samsung. Realme, founded in 2018, is relatively new to the market.

  6. Costs: To compete for market share, Realme might have to spend more than established brands, which could increase its costs and decrease its profitability.

  7. Other Objectives: Realme might have other important objectives, such as maximizing profits or innovating its phones.

  8. Market Growth: Whether Realme should pursue this objective depends on the growth of the global smartphone market.

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