1. What is Market Share?

Market share represents the percentage of an industry's total sales that is earned by a particular company over a specified time period. It shows how large a company is in relation to its market.

2. How Does the Calculator Work?

The calculator uses the market share formula:

Where:

• \( \text{Company Sales} \) — Total revenue/sales of the company (in any currency)
• \( \text{Total Sales} \) — Total revenue/sales of the entire market (in same currency)

Explanation: The formula calculates what portion of the total market sales belongs to the specific company, expressed as a percentage.

3. Importance of Market Share Calculation

Details: Market share is a key indicator of market competitiveness. It helps businesses understand their position in the market, track performance over time, and make strategic decisions.

4. Using the Calculator

Tips: Enter company sales and total market sales in the same currency. Both values must be positive numbers, and company sales cannot exceed total market sales.

5. Frequently Asked Questions (FAQ)

Q1: What time period should be used for sales figures?
A: Typically annual sales are used, but you can calculate for any period as long as both figures cover the same timeframe.

Q2: How is market share different from market size?
A: Market size is the total sales volume of a market, while market share is a company's portion of that total.

Q3: What is a good market share percentage?
A: This varies by industry. Generally, 5-10% is strong in fragmented markets, while dominant players might have 25%+ in concentrated markets.

Q4: Can market share be greater than 100%?
A: No, market share cannot exceed 100% as it represents a portion of the total market.

Q5: Should I use revenue or units sold for this calculation?
A: Typically revenue is used, but unit market share can also be calculated using the same formula with units instead of currency.