Market Share

Market share is a measure of the portion of a market controlled by a particular company or product. It is a key indicator of a company’s competitiveness and is often used in strategic planning, marketing, and business development.

Market share can be calculated in terms of revenue or units sold. The basic formula for calculating market share is:

Market Share = (Company’s Sales / Total Industry Sales) * 100%

For example, if a company has $1 million in annual sales and the total sales in its industry are $10 million, its market share would be:

Market Share = ($1 million / $10 million) * 100% = 10%

A higher market share often indicates higher consumer demand for a company’s products or services and can be a sign of brand strength, superior products, good pricing strategies, or effective marketing. However, a high market share can also draw regulatory scrutiny due to concerns about monopoly or oligopoly control over a market.

It’s important for a company to monitor its market share over time and compare it with competitors to assess its competitive position and track its performance in the market.