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 market sharing?
Market sharing occurs when competitors agree to divide or allocate customers, suppliers or territories among themselves rather than allowing competitive market forces to work.
As market share is a measure of consumers’ or businesses’ preference for one product over other similar products, a higher market share usually means greater sales, less effort needed to sell more and a strong barrier of entry for other competitors.
Market share is the percentage of the total revenue or sales in a market that a company’s business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a 10 percent share in that market.
In a share market, shares are bought and sold. The stock market is a share market, however besides shares of companies, other instruments like bonds, mutual funds and derivative contracts too are traded in the stock market. There are two kinds of share markets: Primary share market.
Market share can affect operations, pricing of products and services, and, potentially stock market performance. A growing market share corresponds to growing revenue. That, in turn, means a business can scale up its operations and opportunity for greater profitability.
It is not illegal to have market power or to use it. Conduct by a business with market power is only a contravention of the Competition and Consumer Act 2010 (CCA) if it has the purpose, effect or likely effect of substantially lessening competition.
It gives you a benchmark of what works and what doesn’t and can offer direction in how you can be more effective for future campaigns.
What does market mean in marketing?
In marketing, the term market refers to the group of consumers or organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product.
Capturing a dominant share of a market is likely to mean enjoying the highest profits of any of the companies serving that market. 1. It can also mean winning the leadership, power, and glory that go with such dominance. But high market share can also mean headaches.
Market share (also known as absolute market share) is the percentage of total sales in one market or industry contributed by one company. This is typically determined by revenue but is often calculated based on unit sales.