Marketing
Market Share
Market Share is a key performance indicator that measures the portion of an industry's sales attributed to a specific company over a specific period. It helps assess a company's competitiveness and influence within its sector.
HOW TO MEASURE
Calculate Market Share by dividing the company's total sales revenue by the total sales revenue of the entire market (including all competitors) during the same period, and then multiply by 100 to express it as a percentage.
HOW TO IMPROVE
Innovative Products: Develop and introduce innovative products or services that meet unaddressed customer needs.
Marketing Strategy: Enhance marketing efforts to increase brand visibility and customer reach.
Customer Experience: Improve customer service to enhance satisfaction and retention.
Competitive Pricing: Adjust pricing strategies to offer better value than competitors.
FORMULA
Market Share = ( Company’s Sales Revenue / Total Market Sales Revenue ) × 100%
EXAMPLE
If a software company earns $10 million in sales in a market where the total sales are $100 million, the company's Market Share would be: Market Share=(10,000,000/100,000,000)×100%=10%. This indicates that the company holds a 10% share of the market.
DEPARTMENT USAGE
Leadership: For strategic decision-making and market positioning.
Sales: To understand the company's performance in the market and adjust strategies accordingly.
Marketing: To tailor campaigns and initiatives based on market dynamics.
Product Management: To align product development with market needs and competitive pressures.
View the collection of Metrics Workshops.