How to analyze market shares?

[sharminakter]

Continuing with the previous example, let's say the main direct competitor has a 45% market share. Then your relative market share formula would look like this:


The result is your market share relative to your main competitor. This metric could serve as a more accurate representation of your company's financial status.

Market share itself is just a number. To derive an action plan from that number, you need to find ways to analyze and implement it.

While market share formulas can provide insight into how hungary telegram number database you should evaluate your business, you need to take a more granular approach to get an accurate picture of your business’s performance. Otherwise, you risk comparing your local pastry brand to the global pastry market, which would be misleading.

Here are some things to consider before jumping to conclusions:

Define your target : Market share is usually calculated by country. By digging deeper into your target market, you can find out where your potential customers live and compare regions.
Compare yourself to similar businesses : Choose similar-sized businesses that share your audience demographics to better assess your market share and understand its impact.
Explore competitors' market share : In one market, a 10% market share may imply market leadership; in others, it means average performance. To be able to evaluate your business, you need to take a comparative view and compare your market share to that of the competition.