Scribd Logo
Upload

Welcome to Scribd!

  • 40 views

    What Is Market Share

    Uploaded by

    Aslam Mohammed
    Market share is the percentage of total sales or revenue in a given market that is earned by a specific company. It is calculated by taking the company's sales or revenue and dividing it by the total sales or revenue in the market. Measuring market share allows companies to assess their competitive strength and performance over time compared to other companies facing the same industry conditions. While improving market share can be achieved through better products, pricing, distribution, or advertising, increased market share does not always lead to higher profits and companies must consider the costs associated with serving more of the market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    What Is Market Share

    Uploaded by

    Aslam Mohammed
    40 views3 pages
    Market share is the percentage of total sales or revenue in a given market that is earned by a specific company. It is calculated by taking the company's sales or revenue and dividing it by the total sales or revenue in the market. Measuring market share allows companies to assess their competitive strength and performance over time compared to other companies facing the same industry conditions. While improving market share can be achieved through better products, pricing, distribution, or advertising, increased market share does not always lead to higher profits and companies must consider the costs associated with serving more of the market.

    Original Title

    What is Market Share

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Market share is the percentage of total sales or revenue in a given market that is earned by a specific company. It is calculated by taking the company's sales or revenue and dividing it by the total sales or revenue in the market. Measuring market share allows companies to assess their competitive strength and performance over time compared to other companies facing the same industry conditions. While improving market share can be achieved through better products, pricing, distribution, or advertising, increased market share does not always lead to higher profits and companies must consider the costs associated with serving more of the market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    40 views3 pages

    What Is Market Share

    Uploaded by

    Aslam Mohammed
    Market share is the percentage of total sales or revenue in a given market that is earned by a specific company. It is calculated by taking the company's sales or revenue and dividing it by the total sales or revenue in the market. Measuring market share allows companies to assess their competitive strength and performance over time compared to other companies facing the same industry conditions. While improving market share can be achieved through better products, pricing, distribution, or advertising, increased market share does not always lead to higher profits and companies must consider the costs associated with serving more of the market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    What is Market Share?

    Market share is the portion or percentage of sales of a


    particular product or service in a given region that are
    controlled by a company. If, for example, there are 100
    widgets sold in a country and company A sells 43 of
    them, then company A has a 43% market share. You can
    also calculate market share using revenue instead of units
    sold. If company A sold widgets for a total cost of $860
    and the people in the country spend a total of $2,000 on
    the same widgets, then the market share is $860/$2,000 or
    43%. The two different methods of calculating market
    share won't always provide the same answer, because
    different companies may charge slightly different prices
    for the same type of widget.
    Market share is used by businesses to determine their
    competitive strength in a sector as compared to other
    companies in the same sector. It also allows you to
    accurately assess your performance from year to year. If
    you only use sales to measure your performance, then you
    don't take into account the market conditions that may
    have improved or decreased your sales. Your sales may
    have gone up because of increased popularity of your type
    of widget, or they may have gone down because of a
    drought or recession. Since those factors are beyond your
    control, they don't give you meaningful information about
    how you are actually doing as a company in terms of
    improving your business. By measuring market share, you
    can see if you are doing better or worse compared to other
    companies that are facing the same challenges and
    opportunities that you are.

    There are four basic ways you can improve your market
    share. You can improve your product so that it is better
    than your competitors or you can change the price or offer
    special incentives for buyers, such as discounts or sales.
    Alternatively, you can find new methods to distribute
    your product so people can buy it in more places. Finally,
    you can advertise and promote your product. Using these
    techniques in any combination may improve market
    share.
    Increased market share is not always the best solution for
    businesses. It might not be profitable if it is associated
    with expensive advertising or a big price decrease. A
    company may not be able to meet the demand of an
    increased market share without huge investments in new
    equipment and employees. In some cases it can be to a
    company's advantage to decrease market share, if the
    lower costs of lower market share can improve
    profitability. Managing market share, therefore, is a very
    important aspect of managing a business.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy