Analysis of growth, price-recovery, and productivity components. Suppose that during 2011, the market for MP3 players grew 3%. All decreases in the selling price of the Mini and increases in market share (that is, sales increases greater than 3%) are the result of Music Master’s strategic actions. Calculate how much of the change in operating income from 2010 to 2011 is due to the industry-market-size factor, product differentiation, and cost leadership. How does this relate to Music Master’s strategy and its success in implementation? Explain.
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