Why is Market Share Important for Business?

[Suba]

Market share is one of the important factors that are considered in preparing marketing plans and strategies. Market share is an indicator (usually in the form of a percentage) used to measure whether a product dominates a market. Market share can be determined by comparing sales of one's own products with sales of similar products within a certain period of time.

Although the market share calculation figures do not guarantee comparable profitability, they will help entrepreneurs measure income, business growth and net profit. A small market share will encourage entrepreneurs to improve product quality and customer service, create more efficient strategies and target consumers.

If a product has a high market share or can dominate the market, then all company/product policies will become a trend and be followed by other products. For example, the Google search engine has more than 92%, making Google the most popular and dominant search engine in the market.

 

[Augusta]

I believe it is because market share is a key indicator of market competitiveness, it enables executives to judge total market growth or decline, identify key trends in consumer behavior and see their market potential.

 

[Fidelia]

Market share is very important because it shows how much impact the combination of advertising and production methods have had on the target market.

 

[Springtime]

Market share is a key indicator of how well your business is doing. If you have large market share, that means your business is well aware of.

 

[Passionate-writer]

Market share signifies the percentage of the market that a business has in comparison to the rest. When a firm has a larger chunk of market share, it means that more customers rely on the brand and consequently, the company has a better chance of growth in the long run.

One of the major advantages of market share is that a enterprise can reduce its costs through increasing the level of its outputs. This will give it the ability to sell the products at much lower prices, which in turn will attract new buyers and help it stay ahead of the pack.

Additionally, owning the market share comes with some authority. Businesses with the biggest market share in the industry usually are the most influential in terms of setting the price and leading consumers of new tendencies. That is why market share is more than just a number, it is the bearer of continuing prosperity among businesses
.

 

[Augusta]

This is an indicator of market competitiveness, it enables executives to judge total market growth or decline and how good the business is doing