Market share refers to the portion or percentage of total sales or revenue that a particular company or product captures within a specific industry or market. <\/span><\/p>\n Market share is a key performance indicator used to assess a company’s competitive position and its relative strength in relation to other players in the market.\u00a0<\/span><\/p>\n The formula for calculating market share is:<\/span><\/p>\n Market Share =\u00a0 (company\u2019s sales or revenue \/ total market sales or revenue) x 100<\/span><\/p>\n This formula provides a percentage that represents the company’s share of the total market.<\/span><\/p>\n Market share is a crucial metric for assessing a company’s competitive position within its industry. A higher market share indicates a stronger presence and influence in the market. It allows companies to compare their performance with the competitors. A company with a higher market share may be seen as the industry leader.<\/span><\/p>\n A high market share can be an indication of brand strength and customer loyalty. Customers may perceive a company with a large market share as more trustworthy and reliable.<\/span><\/p>\n Types of market share:<\/span><\/p>\n A high market share does not necessarily guarantee profitability. It’s possible for a company with a large market share to still be unprofitable if its costs are too high. Some companies may operate in niche markets where they have a small market share but a strong and profitable presence.<\/span><\/p>\n In the beverage industry, Company XYZ sells a popular brand of cola. There are several other competitors in the market, including Company ABC and Company DEF.<\/p>\n Let’s say that in a given year, total cola sales in the market amount to 100 million units. Of these, Company XYZ sells 40 million units.<\/p>\n To calculate market share, you can use the formula:<\/p>\n Market share of Company XYZ = (40 million units \/ 100 million units) \u00d7 100 = 40%<\/p>\n In this example, Company XYZ has a market share of 40%. This means that out of all the cola sold in the market, Company XYZ’s brand accounts for 40% of the total sales volume.<\/p>\n","protected":false},"author":1,"template":"","class_list":["post-37966","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":" Definition Market share refers to the portion or percentage of total sales or revenue that a particular company or product captures within a specific industry or market. What is market share? Market share is a key performance indicator used to assess a company’s competitive position and its relative strength in relation to other players in the market.\u00a0 The formula for calculating market share is: Market Share =\u00a0 (company\u2019s sales or revenue \/ total market sales or revenue) x 100 This formula provides a percentage that represents the company’s share of the total market. Market share is a crucial metric for…<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/za\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/business-glossary\/37966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/media?parent=37966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What is market share?<\/h3>\n
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Example of market share<\/h3>\n