Customers and pricing
Market share
Our sales as a share of total market sales.
Facts checked against sources onWhat does Market share mean?
Market share is our sales divided by the whole market's sales in the same period. Say whether it is measured by value (money) or volume (units), because the two differ when prices differ. Revenue of 150 million in a 1.2 billion market is a 12.5% share by value.
Where does it come up in case interview prep?
- Getting industry-aware fast: the 10-minute industry scanLesson in How industries work: the toolkit
- Procurement and sourcing: where the money goesLesson in Sourcing, trade and supply risk
- China and Japan for case solversLesson in Regions for case solvers: the big markets of the world
- Europe and the UK for case solversLesson in Regions for case solvers: the big markets of the world
- The United States for case solversLesson in Regions for case solvers: the big markets of the world
- Market share, growth, and price elasticityLesson in Business basics for non-business learners
- Industry primers: retail, consumer goods, banking, telecomLesson in Business basics for non-business learners
- Scale and scope: when being bigger lowers costLesson in Why some businesses win: competitive advantage and the economics of strategy
Related terms
- Relative market shareOur share divided by the largest competitor's share.
- Percent versus percentage pointsA change in a rate is measured in points; its relative change in percent.
- TAM, SAM and SOMTotal market, the part you can serve, and the part you can win.
- Penetration rateThe share of potential customers who already use the product.
- Share of walletOur share of what one customer spends in the category.
- ARPU (average revenue per user)Revenue divided by the average number of users.
- AOV (average order value)Revenue divided by the number of orders.
- CAC (customer acquisition cost)What it costs, on average, to win one new customer.
Learn it in context
See Market share at work in a lesson from How industries work: the toolkit, with checks as you go.
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