Question

What is a company's market share?

Answer 1

The answer is: D. The percentage of the total market for the product or service that belongs to the company

For example let's say that there is a total of 100,000 potential consumers for product X. From that 100,000, your company able to create product X that is bought by 10,000 customers. From this number, we can say that your company had 10% market share in product X market.

Market share is usually counted in order to know the popularity of your product compared to the competitors in similar market.

Answer 2

Answer:

D. The percentage of the total market for the product or service that belongs to the company

Explanation:

A company's market share is its sale measured as a percentage of an industry's total revenue.

You can determine a company's market share by dividing its total sales or revenue by total industry sales over a specific fiscal period.

This metric is used to give you a general idea of how big a company is relative to its market and competitors.

There are several types of market share, which can be of value or volume:

• Value market share is based on a company's total share of total segment sales;
• Volumes refer to the actual number of units a company sold in relation to the total units sold in the market.

The value-volume market share equation is not generally linear: a unit may have high values and low numbers, which means that the value market share may be high but the volume share may be low.