Market Share

Extracted Attributes

• Definition

  The percentage of total revenue or sales in a market that a company's business makes up.

• Legal Doctrine

  Market share liability (specific to the United States for hazardous products like medicine).

• Primary Advantage

  Less dependent upon macro environmental variables such as the state of the economy or tax policy.

• Calculation Formula

  Total company sales divided by total industry sales over a specified period.

• Strategic Importance

  Key indicator of market competitiveness and a determinant of business profitability.

Timeline

• The Marketing Science Institute begins the Profit Impact of Market Strategies (PIMS) project to identify determinants of ROI. (Source: Harvard Business Review)

  1971-01-01

• Phase II of the PIMS project is completed, identifying market share as one of 37 key profit influences. (Source: Harvard Business Review)

  1973-12-31

• Publication of 'Market Share—a Key to Profitability' in Harvard Business Review, formalizing the link between share and profit. (Source: Harvard Business Review)

  1975-01-01

• The United States promotes the American AI Export Program to increase the global market share of its technology against Chinese competition. (Source: Document 4eb1520c-e590-49f8-912a-d6766d8f08a8)

  2024-01-01

Market share

Market share is the percentage of the total revenue or sales in a market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a 10 percent share in that market. "Marketers need to be able to translate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. The latter will almost always be more difficult to achieve. Market share is closely monitored for signs of change in the competitive landscape, and it frequently drives strategic or tactical action." Additionally, market share is a key metric in understanding performance relative to the growth of the market as measurement of internal sales growth (or decline) only may be a result of similar growth or declines in the industry being measured. Increasing market share is one of the most important objectives of business. The main advantage of using market share as a measure of business performance is that it is less dependent upon macro environmental variables such as the state of the economy or changes in tax policy. In the United States market, however, increasing market share may be dangerous for makers of fungible and potentially hazardous products such as medicine, due to a US-only legal doctrine called market share liability.

Web Search Results

• Market share - Wikipedia

  Appearance From Wikipedia, the free encyclopedia Relative market adoption For other uses, see Usage share (disambiguation) "Usage share (disambiguation)"). Market share is the percentage of the total revenue or sales in a market "Market (economics)") that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a 10 percent share in that market. [...] Market share is said to be a key indicator of market competitiveness, i.e. how well a firm is doing against its competitors. "This metric, supplemented by changes in sales revenue, helps managers evaluate both primary and selective demand in their market. That is, it enables them to judge not only total market growth or decline but also trends in customers' selections among competitors. Generally, sales growth resulting from primary demand (total market growth) is less costly and more profitable than that achieved by capturing share from competitors. Conversely, losses in market share can signal serious long-term problems that require strategic adjustments. Firms with market shares below a certain level may not be viable. Similarly, within a firm's product line, market share trends for [...] "Marketers need to be able to translate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. The latter will almost always be more difficult to achieve. Market share is closely monitored for signs of change in the competitive landscape, and it frequently drives strategic or tactical action." Additionally, market share is a key metric in understanding performance relative to the growth of the market as measurement of internal sales growth (or decline) only may be a result of similar growth or declines in the industry being measured.

• Research Guides: Company Information: Market Share

  ## Definition and Sources What is 'Market Share'? Market share represents the percentage of an industry, or market's total sales, that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company in relation to its market and its competitors. Market Share Definition from Investopedia Market share information can be found in news articles about a company in trade journals for an industry, in industry reports, and in some of these sources listed below: IBISWorld [...] IBISWorld Search by industry or company name for large companies: Select an industry report to display, next review the content in the tabs of the report titled "Industry at a Glance" and "Major Companies". Market share will be listed for larger companies. No downloading of reports- printing of sections is enabled. This database is only accessible at the following NYPL locations: Thomas Yoseloff Business Center S&P Capital IQ (Standard and Poor's Capital IQ) Search in the Industry Surveys: Select and industry, click the PDF icon to open the report. To find "Market Share" for an industry, use the windows commands "Control + F" to open a search screen within the PDF industry report. Click to each occurrence of the phrase "market share". [...] Skip to Main Content # Company Information: Market Share Research guide for company histories, financials, annual reports, etc. Some resources available only at The Thomas Yoseloff Business Center. Guide by Madeleine Cohen. About Articles and News Company Financials Company HIstories Private Companies Annual Reports Market Share Franchises Business Rankings Corporate Social Responsibility Non-profits ## Definition and Sources

• Market Share: What It Is and Formula - Investopedia

  ### Key Takeaways Market share is the percentage of an industry's total sales over a certain period that a particular company can claim. It is calculated by dividing total company sales by total industry sales. Market share provides a general idea of the size of a company in relation to its market and competitors. Growing market share can be a sign of success, while falling market share may mean the opposite. Ways to increase market share include implementing new technologies, generating customer loyalty, and acquiring competitors. ## Calculating Market Share [...] Learn about our editorial policies Definition Market share is the the percent of total sales a company makes in relation to a broader industry. ## What Is Market Share? Market share is calculated by dividing the company's sales over a certain period by the industry's total sales during the same period. This metric is used to give a general idea of the size of a company in relation to its market and competitors. The market leader in an industry is the company with the largest market share. ### Key Takeaways [...] ## Calculating Market Share A company's market share is its portion of total sales in relation to the market or industry in which it operates. To calculate a company's market share, first determine the period you want to examine. It could be a quarter, a year, or multiple years. Next, calculate the company's total sales over that period. Then, find out the total sales for the company's industry. Finally, divide the company's total revenues by its industry's total sales. For example, if an American company sold $100 million worth of tractors last year domestically, and total tractor sales in the U.S. amounted to $200 million, the company's market share would be 50%. Open a New Account

• Business Basics: Market share - Research Guides

  Definition of Market Share Gale Business Insights Handbook of Investment Research, edited by Miranda Herbert Ferrara, Gale, 2013, pp. 309-311. "Market share is the percentage of the total market (or industry) sales made by one firm. ... Share can be reflected as either percentage of sales dollars, percentage of units sold, or percentage of customers. Percentage of sales dollars is the most common reference." Market Share Encyclopedia of Management, edited by Sonya D. Hill, 7th ed., Gale, 2012, pp. 653-655. #### Problems when defining a market: Here are some of the main characteristics or things that can be used or considered when defining a market or industry: [...] close submenu ## In This Guide: Home How to find ... + Business magazines + Business plans + Case studies + Harvard Business Review + Market share - Definitions - Online, quick & easy - Online sources - not so easy + Organizational charts + Wall Street Journal + Writing styles for business Article Search Book Search Encyclopedias ... # Business Basics: Market share ## Definitions #### Market share is: Below are excerpts from two definitions, with links to their sources. "Market share describes the relationship between a company's success and the success of its competitors. It is the percentage of an entire industry's sales earned by a particular company during a discrete period of time." Definition of Market Share [...] Market Share Reporter (in Gale Business Insights) Use the Search Within Publication box (upper-right) to search for a company name, product or brand. Business Rankings Annual (in Gale Business Insights) Use the Search Within Publication box (upper-right) to search for a company name, product or brand. Sometimes there is market share data here ... #### Online, but a little harder: Passport has good coverage for consumer and packaged goods primarily (nothing for industrials or manufacturing), but can provide very detailed data on market share. Market share by two different measures even: by sales value and by sales volume.

• Market Share—a Key to Profitability - Harvard Business Review

  It is now widely recognized that one of the main determinants of business profitability is market share. Under most circumstances, enterprises that have achieved a high share of the markets they serve are considerably more profitable than their smaller-share rivals. This connection between market share and profitability has been recognized by corporate executives and consultants, and it is clearly demonstrated in the results of a project undertaken by the Marketing Science Institute on the Profit Impact of Market Strategies (PIMS). The PIMS project, on which we have been working since late 1971,1 is aimed at identifying and measuring the major determinants of return on investment (ROI) in individual businesses. Phase II of the PIMS project, completed in late 1973, reveals 37 key profit [...] SKIP TO CONTENT Marketing|Market Share—a Key to Profitability Subscribe Marketing # Market Share—a Key to Profitability by Robert D. Buzzell, Bradley T. Gale and Ralph G.M. Sultan From the Magazine (January 1975) Post Buy Copies Leer en españolLer em português Post Buy Copies [...] PIMS project, completed in late 1973, reveals 37 key profit influences, of which one of the most important is market share.