Question

1. What was the market share of Super Fine Rice Ltd. before the decline in sales?

• A. 45%
• B. 50%
• C. 55%
• D. 60%

Hint:

Market share is a key indicator of a company's competitive position in the industry. Changes in the market environment can significantly affect these shares.

Answer 1

The Correct Option is C

Step 1: Understanding the market share before the decline.
The case clearly mentions that Super Fine Rice Ltd. had a 55% share of the market before the decline in sales.
Step 2: Interpretation of the situation.
The company’s strong market position was a result of its cash-based selling policy, which helped it dominate the market. However, the introduction of credit sales by competitors started to challenge this position.
Step 3: Conclusion.
Thus, before the decline in sales, Super Fine Rice Ltd. had a market share of 55%.