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Market share
 
 
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Market share, in strategic management
Strategic management

Strategic management is the art, science and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives....
 and marketing
Marketing

Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large....
, is the percentage or proportion of the total available market
Market

A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy....
 or market segment
Market segment

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs....
 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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Market share, in strategic management
Strategic management

Strategic management is the art, science and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives....
 and marketing
Marketing

Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large....
, is the percentage or proportion of the total available market
Market

A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy....
 or market segment
Market segment

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs....
 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. It is generally necessary to commission market research
Market research

Market research often refers to either primary or secondary. In secondary research, the company uses information compiled from various sources which appears applicable to a new or existing product....
 (generally desk/secondary research
Secondary research

Secondary research involves the summary, collation and/or synthesis of existing research rather than primary research, where data is collected from, for example, research subjects or experiments....
, although sometimes primary research
Primary research

Primary research involves the collection of data that does not already exist. This can be through numerous forms, including questionnaires and telephone interviews amongst others....
) to estimate the total market size and a company's market share.

Increasing market share is one of the most important objectives used in business
Business

A business is a legally recognized organization designed to provide good s and/or Service to consumers. Businesses are predominant in capitalism economies, most being privately owned and formed to earn profit that will increase the wealth of its owners....
. The main advantage of using market share is that it abstracts from industry-wide macroenvironmental variables
Environmental scanning

Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering....
 such as the state of the economy, or changes in tax policy
Tax policy

Tax policy is the government's policy to taxation, both from the positive economics and Normative economics side of the question....
. According to the national environment, the respective share of different companies changes and hence this causes change in the share market values; the reason can be political ups and downs, any disaster, any happening or mis-happening. Other objectives include return on investment (ROI), return on assets
Return on assets

The return on assets percentage shows how profitable a company's assets are in generating revenue.ROA can be computed as:This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control....
 (ROA), and target rate of profit.

External links

  • and by Fiona Maclachlan, The Wolfram Demonstrations Project.