Browse Definitions :
Definition

market share

Contributor(s): Matthew Haughn

Market share is the percentage of sales in a market acquired by a particular company.

Market share is used as a measure of a company’s market leadership and their success relative to other companies in the same market. Generally, market share is expressed as a percentage of the total number of dollars spent by consumers in a market. The market share percentage can be found by dividing the total number of consumer dollars spent in a market by the number of dollars in sales for the subject company. It may also be expressed as a percentage of the total number of products sold in the market. These percentages give a quick reference of a company’s relative dominance or weakness.

Markets are often broken down geographically. Companies watch market share carefully to gauge the market’s competitiveness. They also use it as guidance on trends relating to their own products, marketing and pricing.

As a rule, companies aim for a high market share as it is usually connected to high profits. However, having a very high market share also involves increased risk. It ensures aggressive competition and may lead to anti-trust action. As a result, some companies seek to keep their market share lower than it could potentially be to avoid being targeted by the competition and harsh regulations.

This was last updated in July 2017

Continue Reading About market share

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

SearchSecurity

SearchHealthIT

  • telemedicine (telehealth)

    Telemedicine is the remote delivery of healthcare services, such as health assessments or consultations, over the ...

  • Project Nightingale

    Project Nightingale is a controversial partnership between Google and Ascension, the second largest health system in the United ...

  • medical practice management (MPM) software

    Medical practice management (MPM) software is a collection of computerized services used by healthcare professionals and ...

SearchDisasterRecovery

SearchStorage

  • hot plugging

    Hot plugging is the addition of a component to a running computer system without significant interruption to the operation of the...

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification and is used in internally mounted ...

  • kilobyte (KB or Kbyte)

    A kilobyte (KB or Kbyte) is a unit of measurement for computer memory or data storage used by mathematics and computer science ...

Close