Market Share by Units
Market Share by Revenue
Definition – What is a Market Share?
Market share is a measurement of the percentage of an industry’s activity that a specific organization is generating.
It can be measured by units sold or revenue.
Formula – How to calculate market share
Market Share by Units = (Unit Sales / Total Market Unit Sales) x 100%
Market Share by Revenue = (Revenue / Total Market Revenue) x 100%
A company sells 400 units. There are 2200 units sold by all companies.
Market Share by Units = (400 / 2200) x 100% = 0.1818 x 100% = 18.18%
A company’s revenue is $10,000. There is a total market revenue of $45,000.
Market Share by Revenue = (10,000 / 45,000) x 100% = 0.2222 x 100% = 22.22%
Sources and more resources
- Economic Times – Definition of ‘Market Share’ – A quick definition of market share and how it relates to business.
- Wikipedia – Market Share – Different types of market share.
- Houston Chronicle – What is market share? – A description of market share and how it is used.
- Investopedia – Market Share – A description and example of market share.