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:

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

Explanation: The formula calculates what portion of the total market is controlled by the company.

3. Importance of Market Share Calculation

Details: Market share is a key indicator of market competitiveness. It helps businesses assess 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.

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 revenue opportunity, 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 decent, 10-20% is strong, and over 20% often indicates market leadership.

Q4: Should I use revenue or unit sales?
A: Revenue-based market share is most common, but unit share can be useful in some industries.

Q5: How often should market share be calculated?
A: Most companies track it quarterly or annually, depending on their business cycle.