Market Research & Traffic Analysis

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Market Share

Market share is a firm’s percentage of an industry’s total sales. It is calculated as the product of the firm’s sales over the industry’s sales during a specified period.

How do you calculate market share?

A company’s market share is its sales measured as a percentage of an industry’s total revenues. You can determine a company’s market share by dividing its total sales or revenues by the industry’s total sales over a fiscal period. Use this measure to get a general idea of the size of a company relative to the industry.

What is meant by a market share leader?

Market leadership is the position of a company with the largest market share or highest profitability margin in a given market for goods and services. Market share may be measured by either the volume of goods sold or the value of those goods.

What is the purpose of market share?

Market share is said to be a key indicator of market competitiveness-that is, how well a firm is doing against its competitors. This metric, supplemented by changes in sales revenue, helps managers evaluate both primary and selective demand in their market.