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What is the market Share of
the Company? What are the main ways of measuring the
market share?
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Posted:
Mar 2010 |
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The goal of every company is to
achieve the all business goals. The main goals are
sales volume, revenue, profit, etc. One of the most
important indicators is the Market Share. The Market
Share represent the sales share of the company,
expressed by one of several measuring method. |
The market share is measured in
a several different ways, since everyone of them is
expressing the different result dimension. The
Market share can be expressed as volume
share, value share and transaction share.
Volume Market Share - example: 30% of Beer market
share means that X company owns the sale of 30 liters
out of every 100 liters sold in the specific market.
Value Market Share
- example 25% of Bottled Water
share means that Y company sells 25% of value sold
in the whole market.
Transactional Market Share - example 50% of Diary
market share means that Z company sells 50% out of
total bottles sold in the market.
It is easy to understand that every way of measuring
the market share has different perspective of the
market share. The different perspectives of the same
sales volume is giving a different information. for
example, the company may have a high volume share
but the value share may be small, in case that the
unit price of their products is relatively small.
Therefore, it is necessary to take into account a
different perspectives of measurement of the market
share.
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