Market Share

Market Share refers to the portion of a market controlled by a particular company or product, expressed as a percentage of total sales in that market. It indicates the relative size of a company compared to its competitors within the same industry.

For example, if a company sells $1 million worth of products in a market where total sales amount to $10 million, its market Share would be 10%.

In the smartphone industry, if Company A sells 50 million devices in a year and the total smartphone sales for that year is 200 million, Company A’s market Share would be 25%.

Another case is in the soft drink industry, where Company B has annual sales of $3 billion out of a total industry sales of $10 billion, giving Company B a market Share of 30%.