Explain one factor that might affect the target market share of a business entering the car insurance market in the UK

Answer 1

First and foremost, define a target market share.

There are different strategies and reasons for entering a market.

Demand and supply will always affect the market but interestingly, it is important to know the external and internal factors that impact market share.

Also, put into consideration, the short-run phenomenon when some variables are just the same and the long run.

Income level. costs of production, technological change and profits are some factors to consider.

Reference

https://www.pearsonschoolsandfecolleges.co.uk/FEAndVocational/BusinessandEconomics/AlevelandAppliedAlevel/EdexcelAlevelBusiness/Samples/AS-and-A-level-Business-sample-Units/Sample_Unit-1_The-Market.pdf