1. What is Market Share?

Market share represents the portion of a market controlled by a particular company or product. It's calculated by comparing the company's sales to the total sales of the entire market.

2. How Does the Calculator Work?

The calculator uses the market share formula:

Where:

• \( \text{Company Sales} \) — Revenue generated by the company (in currency)
• \( \text{Total Sales} \) — Revenue of the entire market (in currency)

Explanation: The formula shows what percentage of total market sales your company accounts for.

3. Importance of Market Share Calculation

Details: Market share is a key indicator of market competitiveness, business performance, and growth potential. It helps companies assess their position relative to competitors.

4. Using the Calculator

Tips: Enter both company sales and total market sales in the same currency. Values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good market share?
A: This varies by industry. Generally, a dominant player might have 40%+, while 10-30% is strong for most markets.

Q2: Can market share exceed 100%?
A: No, market share is always ≤100% when calculated correctly. If you get >100%, check your inputs.

Q3: How often should market share be calculated?
A: Typically quarterly or annually, but can be done more frequently in fast-changing markets.

Q4: What are limitations of market share?
A: Doesn't account for profitability and can be misleading if market size isn't accurately measured.

Q5: Should market share be the only metric to track?
A: No, it should be considered alongside other metrics like revenue growth and profitability.