Author: Jim Riley Last updated: Sunday 23 September, 2012
Measuring Market Share
An accurate measure of market share is dependent on several
-A satisfactory definition of
the market. This would answering questions such as which products to include,
which geographical areas, which means of distribution?
-The availability of reliable,
-Agreement on which measures
of share are most relevant. For example, should market share be calculated
on the basis of sales revenues, profits, units produced or some other measure
that competitors in the market generally recognise as valid.
In reality, market shares are calculated in a myriad of ways.
However, most tend to be based on one or both of the following: