Advanced Competitive Strategy | Online Course Support

Let’s assume there are three ice-cream companies: Mycream, Iscream and Iceland. Mycream has a market share of 16%, Iscream a market share of 34% and Iceland a market share of 50%. Using the Herfindahl-Hirschman index (HHI) you can say that for the case above the market is …

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That’s exactly right! According to the lecture and the Herfindahl-Hirschman index (HHI), this is the right calculation path: HHI : (16*16)+(34*34)+(50*50) > 1800. The market in this case is highly concentrated since the HHI calculation yields 3912.

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