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Market share is the portion of a given company's or product's total sales or revenue in a particular market. It is a widely used indicator to assess a company's level of industry competition.
There are several techniques to determine market share, but the most popular one is to divide a company's total market sales by the combined total sales of all other companies in that market. For instance, a company's market share would be 10% if it generated $10 million in sales in a market where there were $100 million in total sales.
Market share is a critical measure of a company's competitive position since it shows how well it can meet customer demand and outperform rival companies in the same market. Increased economies of scale, stronger negotiating positions with suppliers, and improved brand awareness and consumer loyalty can all be a result of having a larger market share.
Market share is an important consideration, but it is not the only one that affects a company's success. Long-term success also depends on other elements including profitability, innovation, and customer pleasure. However, a number of variables, including modifications in customer preferences, the introduction of new rivals, and adjustments in pricing tactics, might affect market share.
