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Market Share Write for Us

Market Share Write for us

The market share (market share or Share Of Market: SOM) is an indicator used to evaluate the company’s competitive position on the market synthetically and is widely used in companies to define planning objectives. The definitional simplicity, however, hides some problems that must be clarified so that the concept of market share can be correctly used. And if you can send us the ideas and submit the article at contact@businessian.com.

What is Market Share?

Market share is a percentage of the company’s sales turnover compared to the entire industry, determined based on its revenues and sales. Market share identifies the company’s size compared to the rest of the market and competition. It provides information on the market leader (the manufacturer or brand with the highest market share in an industry) based on time analysis that helps understand which companies are gaining market share and which are losing it.

How is Market Share Calculated?

Market share is calculated by in-between a company’s product sales by the industry’s total sales in a specific period on the same product. For example, if consumers spend $100 billion annually on groceries and the greengrocer’s sales total $4.5 billion over the same period, the company has 4.5 percent of the grocery market.

Why are Market Shares Important?

Market share allows you to determine the size of a company, the rest of the market, and the competition. Furthermore, it provides information about the market leader and, based on time analysis, helps to understand which companies are gaining market share and which are losing it. The market shares vary according to the type of parameter used (revenues, unit sales, or other). A company can sell 5,000 cars for €12,000 each, while someone else can sell 50 for €120,000 each. It, therefore, depends on the type of market we are analyzing.

Strategies for Market Share

Setting market share goals is one of the critical strategic issues for business management due to its importance on profitability. Indeed, as much research has shown, companies that have achieved a high market share have considered higher profitability than competitors with more modest claims.

How is the Market Share of a New Company Calculated?

Calculating the market shares of a new company or a new industry can be complicated. Independent bodies generally collect information for high-growth companies and mature markets. Given the difficulty of obtaining data and the low demand, it is easy to understand why it is not easy to recover this data.
For example, data on market shares of the food sector in the United Kingdom is readily available because it is a crucial sector for measuring consumer spending.

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Why Write for Businessian – Market Share Write for us

Why Write for Businessian – Market Share Write for Us
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