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Direct Hit

Unit 4 - Marketing - QB

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Chart Increasing

Unit 1 - Introduction To Business Management - QB

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Briefcase

Unit 2 - Human Resource Management - QB

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Money Bag

Unit 3 - Finance & accounts - QB

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Factory

Unit 5 - Operations management - QB

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Bar-Chart

Unit 6 - Assessment

Market share represents the percentage of total sales that a company has within a specific industry. It is an indicator of a firm&rsquo;s competitiveness in the market. The formula to calculate market share is

&nbsp;

Market Share Percentage =$\frac{Firm's \,Sales}{Total \,Sales\, in\, the \,Market}$&times;100

<ul>
	<li>By Volume: This type of market share measures the number of goods bought by customers, providing a quantitative measure of the units sold by businesses. Example: the number of bags of maize sold by a farm.</li>
	<li>By Value: This measures the amount spent by customers on the total number of goods sold by businesses. It represents the total revenue expressed in monetary terms, such as Kenyan shillings (KSh), US dollars (US$), or Indian rupees.</li>
</ul>

Consider a company, PQR Electronics, that sold &euro;8 million worth of computers in Sweden. During the same period, the total market sales were &euro;100 million. Using the market share formula, the market share of PQR Electronics would be:

&nbsp;

&nbsp;Market Share Percentage =$\frac{€8million}{€100million}$&times;100 = 8

&nbsp;

This means that PQR Electronics holds an 8% market share in the computer industry in Sweden.

An increase in market share can indicate that a business has effectively implemented marketing strategies that attract customers, enabling the company to sell more products and outpace its competitors. This can result in

<ul>
	<li>Increased Profits: A higher market share typically means more sales, which can lead to higher profits for the company.</li>
	<li>Dominance in the Industry: A company with a large market share is often considered a key player in the industry, giving it a competitive advantage over other businesses.</li>
</ul>

Consider the smartphone industry. Apple and Samsung are two giants in this sector, with significant market shares. Their success can be attributed to innovative products, effective marketing strategies, and a loyal customer base. When Apple launches a new iPhone model, it often captures a significant portion of the smartphone market, increasing its market share. This leads to increased profits and strengthens Apple&#39;s position in the industry.

<ul>
	<li>Market share indicates a company&#39;s competitiveness within an industry.</li>
	<li>It can be measured by volume (number of units sold) or by value (total revenue).</li>
	<li>An increase in market share can lead to higher profits and industry dominance.</li>
</ul>

Remember, market share isn&#39;t everything, but it can be a useful metric to evaluate a company&#39;s performance and competitiveness. It&#39;s always a good idea to look at various factors when analyzing a business, such as customer satisfaction, innovation, and overall market trends.

Unit 4 - Marketing - QB

Understanding Market Share: Key to Industry Dominance

Table of content

Example

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Unit 4 - Marketing - QB

Understanding Market Share: Key to Industry Dominance

Table of content

Example

Unlock the Full Content!

Unit 4 - Marketing - QB

Understanding Market Share: Key to Industry Dominance

Table of content

Concept - market share

Types of market share

Example

Unlock the Full Content!

Unit 4 - Marketing - QB

Understanding Market Share: Key to Industry Dominance

Table of content

Concept - market share

Types of market share

Example

Unlock the Full Content!