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Market share

From Academic Kids

Market share, in strategic management and marketing, is the percentage or proportion of the total available market or market segment that is being serviced by a company.

It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market.

Contents

Objective

Increasing market share is one of the most common objectives used in business. The main advantage of using market share is that it abstracts from industry wide macroenvironmental variables such as the state of the economy, or changes in tax policy.

Other objectives

Other objectives include return on investment (ROI), return on assets (ROA), and target rate of profit.

See also

Lists of related topics

es:Cuota de mercado nl:Marktaandeel

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