Market Share

Market share means the percentage of total sales in a market that belongs to a company. In simple terms, market share shows how much of the market a company controls. Market share is important because it helps investors understand a company’s competitive position. Rising market share may suggest strong products, pricing, distribution, or brand power. For example, if a company sells 20% of all smartphones in a market, its market share is 20%. Market share is not the same as profit. A company can have high market share but low profit if costs are too high or prices are too low.