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Market Analysisimportant

Market Share

The percentage of total market sales captured by a company or product.

Formula
Market Share = (Your Revenue / Total Market Revenue) × 100%
Example

If the market is $100M and your revenue is $5M, you have 5% market share.

Good Range

Growing share in growing market is ideal

Warning Range

Declining share may indicate competitive weakness

Complete Definition

Market share represents the portion of a market controlled by a particular company or product. It's calculated as a percentage of total market sales and is a key indicator of competitive position.

How to Calculate

Market Share = (Company Sales / Total Market Sales) × 100

Types of Market Share

Revenue Market Share

Based on dollar value of sales

Unit Market Share

Based on number of units sold

Customer Market Share

Based on number of customers

Why Market Share Matters

- Indicates competitive strength - Affects pricing power - Influences economies of scale - Impacts supplier negotiations - Drives strategic decisions

Market Share Strategies

Gain Share

- Competitive pricing - Superior product - Better marketing - Acquisition

Defend Share

- Customer loyalty programs - Innovation - Service quality - Switching cost creation

Market Share Goals

- **Startup**: Establish any measurable share - **Growth**: Gain share quarter over quarter - **Mature**: Maintain or modestly grow share - **Leader**: Defend against challengers

Used in:Competition AnalysisMarket Analysis

Related Terms

Total Addressable Market (TAM)
The total market demand for a product or service if 100% market share were achieved.
Serviceable Addressable Market (SAM)
The portion of TAM that your product can actually serve given your business model.
Serviceable Obtainable Market (SOM)
The realistic share of SAM you can capture in the near term given competition and resources.
Competitive Landscape
An analysis of all competitors, alternatives, and substitutes in your market.

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