Market share is a term that is used to describe proportions of particular markets that are supported by a number ofbusinesses,brands orproducts. Market share is shown as a percentage and calculated by thesales of a business overtotal sales in the market times100%.
By measuring market share, businesses can be indicated asmarket leaders. This may influence other companies who either wish to follow the market leader or to help the leader to maintain its position. A businesses level of market share may also be an indication of its success or failure, either as a company or because of itsstrategy.
Care is needed when analysing the market share of a business. Market share can be measured in different ways and calculated as the sales of a business as a percentage of total market sales. Sales, too, can be calculated in multiple ways, it may be the value of sales or as the volume of sales.