Market Share is the portion of a specific market’s total sales that is captured by a particular company or product. It is a key indicator of a company’s competitiveness and standing within its industry. Market share can be measured in terms of revenue (value market share) or units sold (volume market share), using the formula: (Company’s Sales / Total Market Sales) * 100. A high or growing market share suggests strong performance, economies of scale, brand recognition, and bargaining power. However, it is not always correlated with profitability, as companies may gain share through deep discounts. Market share analysis helps businesses evaluate competitiveness, set strategic goals, and measure the impact of marketing efforts.
