Market share
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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.
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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
- Concentration ratio
- Patronage concentration
- Marketing
- Marketing management
- Marketing plan
- Pricing objectives
- Strategic management
- Strategic planning