Why is Market Share Important in Business Strategy?

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Market share, or market share, is the percentage of total sales or production of a product or service that a company or brand has in a particular market. In this article, we will discuss in detail what market share is, why it is important in business strategy, how to calculate it, and how to use it for company growth.

List of contents
What is Market Share?
Why is Market Share Important in Business Strategy?
How to Calculate Market Share
Benefits of Having a High Market Share
Strategies to Increase Market Share
Conclusion
What is Market Share?
Market share measures how much a company or brand contributes c level executive list to total sales or production in a particular market over a given period of time. It can be measured as a percentage of total sales or production, or in units sold. Market share provides an idea of ​​the relative position of a company or brand in the market compared to its competitors.

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1. Competitiveness Indicator: Market share is the main indicator of a company's competitiveness in the market. The higher the market share, the stronger the company's position in the market.

2. Performance Monitoring: Market share helps companies monitor their performance over time and compare it with competitors.

3. Strategy Determination: Market share information helps companies determine appropriate marketing, sales and product development strategies.

4. Effectiveness Evaluation: Market share is used to evaluate the effectiveness of marketing and promotional programs, as well as customer response to products or services.