How is the market share calculated?

Market share is calculated by the following three methods:

1, overall market share

Total market share refers to the proportion of sales volume (amount) of an enterprise in the whole industry.

For example, the sales of an enterprise is 5 million and the sales of the whole industry is 50 billion, so its market share is 500/5000000=0.0 1%.

2. Target market share

Refers to the proportion of sales volume (amount) of an enterprise in its target market, that is, the market it serves.

For example, the sales of a catering enterprise is 65.438+000 billion, and the sales of catering service market is 65.438+000 billion, so its market share = 654.38+000/654.38+000000 = 0.01%.

3. Relative market share

Generally speaking, the calculation of relative market share is more meaningful. There are three competitors and the competitor with the largest relative market share.

Three competitors refer to the ratio of the sales volume of an enterprise to the total sales volume of the three largest competitors in the market.

For example, an enterprise's market share is 20%, and the market shares of its three biggest competitors are 10%, 10% and 15% respectively, so the relative market share of the enterprise is 30% ← (10%+/kloc-).

Extended data:

Generally speaking, a high market share means a high profit in the following two cases.

1, the unit cost decreases with the increase of market share. This is because market leaders operate larger factories, enjoy the scale of costs, and the cost experience curve drops rapidly, so the unit cost drops.

The company provides high-quality and high-price products, and the price increase exceeds the additional cost brought by high quality. Improving product quality will not increase the company's cost, because the company will also reduce waste and after-sales service consumption. If its characteristics are very suitable for the needs of consumers, they would rather spend more than the cost.