Market Share Calculator
Answers the Question
How much of the market relies on us?
Calculator for Market Share
What Is the Market Share?
Market share provides a single-number insight into the popularity of a given product compared to others with which it competes.
Why Is it Important?
- Assuming that players' in the market are selling roughly comparable goods to roughly comparable people, market share statistics provide powerful insight into the relative strength of a firm's product line.
Formula(s) to Calculate Market Share
- MARKET SHARE = TOTAL UNITS SOLD BY COMPANY / (TOTAL UNITS SOLD IN MARKET)
Common Mistakes
- Confusing market share with profitability. Apple, for instance, sells a small percentage of the smartphones in the world, but captures the majority of the profits.
- Not considering usage lifespan. Some products are used much longer than others. A company that sells longer-lasting products may enjoy a much smaller percentage of purchases, but a much higher percentages of active users within a given market.