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.
