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Market analysis - measuring market share

Author: Jim Riley  Last updated: Sunday 23 September, 2012

Measuring Market Share

An accurate measure of market share is dependent on several factors:

- 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, up-to-date information

- 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:

- Sale revenues

- Sales volumes (units)

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