26 February 2021

Market Share

Market Share: The percentage of a market accounted for by a specific entity.

 

Unit Market Share: The units sold by a particular company as a percentage of total market sales, measured in the same units.

 

This formula, of course, can be rearranged to derive either unit sales or total market unit sales from the other two variables. 

 

Revenue Market Share: Revenue market share differs from unit market share in that it reflects the prices at which goods are sold. In fact, a relatively simple way to calculate relative price is to divide revenue market share by unit market share.

 

As with the unit market share formula, this equation for revenue market share can be rearranged to calculate either sales revenue or total market sales revenue from the other two variables.

 

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