Autobrake is a business that manufactures brake systems for cars. Fig. 1 shows its market share in 2005 and 2010. The market for brake systems was worth $70m in 2010. It is likely to become an increasingly competitive market. Autobrake's management believe that the company needs to develop a wider range of products if it is to be profitable in the future. [Figure 1: Market shares for brake systems]

1. (a)What is meant by an ‘increasingly competitive market'?[2]
2. (b)Calculate the value of Autobrake's sales in 2010.[2]
3. (c)Autobrake uses flow production in its factories. Identify and explain two benefits of using flow production. Benefit 1: Explanation: Benefit 2: Explanation:[4]
4. (d)Identify and explain three possible reasons why Autobrake's market share changed between 2005 and 2010. Reason 1: Explanation: Reason 2: Explanation: Reason 3: Explanation:[6]
5. (e)Do you think that investing in a wider range of products will mean that the business will become more profitable in the future? Justify your answer.[6]

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