16 Explain how a takeover of a competitor would affect a business's market share.

[Sir Afzal Shad]

16 Explain how a takeover of a competitor would affect a business's market share. [3]

[Subhan Zafar]

{KN}A takeover of a competitor allows a business to instantly increase its market share by gaining control of the rival’s customers, sales, and market presence.
{APP}For example, if Coca-Cola were to take over a smaller soft drink brand in Pakistan, such as Pakola, it would immediately gain access to Pakola’s existing customers, distribution channels, and retail shelf space.This means Coca-Cola’s total share of the soft drink market would rise, as it now controls a larger portion of total industry sales.
{AN}The business may also benefit from reduced competition and economies of scale, allowing it to operate more efficiently and strengthen its dominance in the market. However, it must manage the takeover carefully to avoid cultural clashes or brand confusion that could reduce the expected benefits.

[Shaliza khawaja]

a takeover allows you to transferring the competitors share of customers and sales directly to your company, which increases its portion of total market sales.
for example if a major arline takes over a smaller airline, it gains cntrol over smaller routes and passengers
this enables then to reach smaller destinations and attract more customers furthermore they gain more market influence in the long run, it also build a greater brand image for the company, making it hard for competitors to enter

[Mamoona Hussain]

KN: A business's market share increases due to control over the rival company as their sales and revenue and monitored by them.
APP: For instance, if car manufacturer A take over Car Manufacturer B then their sales would double so their market share would increase.
AN: As they will be earning a higher profit, they could use it to offer lower costs to the customers which will attract more customers and tempt them to leave their previous brands due to which the brand image of the car manufacturer A will improve which will help them achieve customer loyalty due to which their ratio of repeat sales would increase and therefore so will market share.

[areeshasaber]

[kn] their market share would increase.
[app] for example, coke takes over pepsi, both their market shares would increase or merge.
[an+] this will reduce competition, reduce cost of production which will lead to profit maximization.

[Arham Qadri]

[KN] The market share would increase immediately.
[APP] For example if Nikke takes over Puma then their sales would double, and market share would increase.
[AN] This will result in them earning high profit, improve quality of shoes which will attract customers, and the business could charge additional price because of the branding and packaging will improve their brands image.

[shamaim shakeel]

Knowledge Point:
A takeover of a competitor can increase a business’s market share because it combines two companies’ customer bases and reduces competition in the market.

Application:
For example, if Jazz, a major telecom company in Pakistan, takes over Ufone, it would gain Ufone’s existing customers and expand its overall presence in the mobile network market.

Analysis:
By gaining more customers, Jazz would have a larger share of total market sales. With fewer competitors, it could set stronger pricing and marketing strategies. This increased control would make Jazz the dominant player in the industry, helping it maintain a powerful market position and higher profits in the long term.

[sikander ali]

[KN]businesses consumer base would increase as well as increasing profit margins.
[APP]for instance a fashion designer takes over another fashion designing company which would increase their access to the other business and their consumers.
[AN]thus this leads to increase in efficiency as the workers off the rival company will be now under our company which will help us to compete our orders in time which would lead to increasing market share likewise increasing sales and profit of the business.

[Muaz Aamir]

KN:
A takeover happens when one business buys another, often to expand and strengthen its position in the market.

AP:
For example, if Jazz takes over Zong in Pakistan, it would combine both customer bases under one company.

AN:
The business’s total number of customers would increase. Its overall share of the market would grow compared to rivals. It would also gain more control over pricing and competition in the industry.

[Shuraim Arif]

(KN) The business's market share would increase.
(APP) For example, if a textile manufacturing company takes over another business in the same market, the textile manufacturing company's market share would increase by a huge number depending on the size of the business it took over.
(AN) Many businesses see this as a very safe way to increase market share as it mostly has positive effects for the business such as there are less competitors in the market now that can challenge the business and this also means that all of the market share that belonged to the company that was taken over, would now belong to the company that took over it. This leads to an increase in customers as competitor's customers now have limited choices to buy from, eventually leading to an increase in profit.

[Wahaj Ashraf]

[KN] A takeover will lead to an increase in market share of the business.
[APP] e.g. If a soft drink company takes over a rival it now owns both businesses thus this means that the business has gotten the sales of two businesses
[AN] This increases the total sales controlled by the business raising its market share because it now holds a larger portion of industry sales and reduces competition at the same time hence making business the market leader.