Market Share

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Market share, in strategic management and marketing, is the percentage or proportion of the total available market or market segment that is being serviced by a company.

It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market.

Objectives Increasing market share is one of the most important objectives used in business. The main advantage of using market share is that it abstracts from industry-wide environmental scanning such as the state of the economy, or changes in tax policy. According to the national environment, the respective share of different companies changes and hence this causes change in the share market values; the reason can be political ups and downs, any disaster, any happening or mis-happening.

Other objectives include return on investment (ROI), return on assets (ROA), and target rate of profit. Market share has the potential to increase profits as profit leads to more customers with a higher demand for a particular product.

See also

Lists of related topics

List of marketing topics
List of management topics
List of finance topics
List of accounting topics
List of economics topics

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