Market Share
Market Share
Let's work on how market share is calculated.
Market share is a metric used in business to measure the proportion of a market controlled by a particular company, product, or service compared to its competitors. It is usually expressed as a percentage and provides insight into the company’s relative size and performance within the industry. Understanding market share helps businesses gauge their position in the market and develop strategies to increase their competitive advantage.
Market share calculation
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Exercise is in the end of content
We will not be analyzing the implications of the market share findings for the business.
Calculating and interpreting three key marketing measurements is essential when analyzing marketing data and setting marketing objectives.
Comparing and contrasting the performance of different brands or products.
Market share is always expressed as a percentage.
It’s the percentage share of the overall market or market segment held by a product, brand, or business.
For Example: Solar Market Share
For example, let’s examine the solar energy industry with 5 large players.
First, you need to find the total sales of the biggest companies that make up the market in solar energy. To find this information, there are many resources available, such as Yahoo Finance and financial reports.
Once you establish the total sales for each company, you then add these totals to find the total sales for the entire industry.
To find the market share, you should use the formula:
The side of the market is 2,000,000 you can find this number by adding:
(business A + business B+ business C + business D + business E )
Market Share=(Total Sales of a Company/Total Market Sales)×100
Calculation Market Share for each company
Market Share Business A=(250000/2000000)×100
Market Share Business B=(400000/2000000)×100
Market Share Business C=(900000/2000000)×100
Market Share Business D=(175000/2000000)×100
Market Share Business E=(275000/2000000)×100
Market Share
- Explain how the overall market is split between the existing competitors.
- Calculating based on market value is also another technique
- A good indicator of competitive advantage
- Look for Increase and decrease changes
Market share can be calculated based on different numbers, for example, the overall sales or revenues of a market in total, and the calculation can be based on that.
You can also look at the volume or the amount of products produced or sold in the market; that is also a significant way of calculating market share.
Exercise: Calculate the Market Share for Smartphone's
Download the Dataset SmartPhones.
Open the file in Excel
Use the Sum function and used the Market share formula to calculate each company’s market share percentage. Select the data and create a Pie chart.
In this lesson you will about Search Engines and how they work. Search engines have three tasks in common. These include 1. Crawling, 2. Indexing, and 3. Ranking. Examples of search engines are Google, Bing, and DuckDuckGo.
Conclusion
Understanding and analyzing market share is fundamental for businesses to assess their market position, develop competitive strategies, and identify growth opportunities. By regularly calculating and monitoring market share, businesses can make informed decisions to enhance their market standing.
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Lecturus is a platform that offers training to individuals interested in developing or enhancing their computer skills, as well as a career change or advancement.
Company
Get In Touch
147 Prince St, Brooklyn, NY 11201
- Email: lecturus@outlook.com
- Phone: 929-280-7710
- Hours: Mon-Fri 9 AM - 5 PM