When to use market share

When to use market share?

The market share metric is relevant in the following circumstances:

  • reasonably accurate information of most/all key competitors sales is available,
  • the firm has a good understanding of the scope of its market/s and
  • the competitive position of the brand is important.

Therefore, it is more commonly used for firms/brands that see themselves in a competitive battle.

When is market share not used?

Market share is less likely to be used for:

  • small businesses, where market share is generally irrelevant
  • for industries that are very diverse (that is, no clear competitors for market definition) and/or
  • for industries that do not have access to competitors sales information.