What is a market share example?
Every industry has a target market, and each company within an industry has sold to a percentage of the market.
That is market share.
For example, assume that XYZ Electronics sold $5 million in televisions in the United States, in a total market in which $100 million in televisions were sold during the same period..
How do you define market share?
Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company in relation to its market and its competitors.
What is considered a high market share?
The significance of market share: Market share is a measure of the consumers’ preference for a product over other similar products. A higher market share usually means greater sales, lesser effort to sell more and a strong barrier to entry for other competitors.
What is market share and why is it important?
Because market share is a key indicator of market competitiveness, it enables executives to judge total market growth or decline, identify key trends in consumer behavior and see their market potential and market opportunity.
How do you gain market share?
Companies increase market share through innovation, strengthening customer relationships, smart hiring practices, and acquiring competitors. A company’s market share is the percentage it controls the total market for its products and services.
What is a good percentage of market share?
And, in fact, it might not be desirable. Gaining market share is easy when your current share is relatively small. Increasing that share from 5% to 10% to 15% is relatively easy. You “merely” need to target the right customers (or segments), communicate a well focused value proposition, and service them well.