Iit is clear that market share questions are quite challenging to address on online platforms because the US court dismisses the case because attorneys failed to prove Facebook’s monopolistic status and show its market share.
If you want simply to find benchmarks to the performance of assessment or running market research, market share is one of the most important parts to consider.
Mostly big companies like Tesla or Coca-Cola publish their annually their market share report to track their market share shifts.
If you have an online business or you aren’t operating your business on a huge scale there are other many ways to calculate market shares without involving third-party analytics or expenses.
Here is a brief description of the question of how to calculate market share?
Want to know What is Market Share?
Traditionally, market t is about sales. Market share is the percentage of total sales by a particular company generated by industry.
For instance, if you have a billion-dollar Market and your annual revenue is at $1000,000,000 it means that you have a 10% market share.
On an online platform, it is just about sales.
You can get traffic and active followers and many other criteria’s into account for just considering sale in online business.
What are your criteria it doesn’t matter but you must keep in mind that market share can never be in a constant number.
How is it calculated?
There are many ways to calculate market share but here is a description of the most common ways to calculate market share that can help you to calculate market share without involving third party analytics.
- The formula of classical market share is based on the industry’s total sales.
- Customer market share formula based on customer-centric to do this you have to know total customers within your market.
- The formula of relative market share is based on the market share of your company key players.
But at the online platform, the matter is different because in the online realm sales and customers can easily be replaced by traffic.
The Best Market Share Formula
Here is the most famous and common way to calculate market shares.
First of all, find your company’s total sales for a specific period and divide that number with its total revenue during the same period.
Then multiply that number by 100 to get the amount of percentage:
The exact formula would look like this:
$100,000 / $1,000,000 = 0.10 x 100 = 10% market share.
We can understand it with the example if you sell clothes and your total sale for a quarter equal $100,000 of a specific period. In the Same specific period, the total industry sale was $1000,000 it means that you have 10% of the market shares.
By using the Market share formula you can get an idea about your company and what is your company’s position within the industry. Then you should compare your company with other direct competitors to do this you can get a good idea about your company.
Find Ways to Analyze Market Share!
Market share is just a number. You have to find ways to analyze to get an action plan for this number.
Market share formula offers light on how you can go about your business assessment.
You must have a wider approach to get a good idea and accurate view about your business or company performance.
Otherwise, your business or company might close or end up by comparing with your other local competitors.
Here is a brief description of some most important steps to do before you jump to conclusions.
First of all, you must define your target because most Market share is calculated per country.
And you always compare your business against similar businesses.
And you should explore market competitors and you must look for gaps and opportunities.
Best Ways to Increase Market Share:
There are many ways to increase market share.
You must know and learn that how to increase market share. You should know about the Basics.
You need to keep innovating to maintain your reach whether a niche player or market leader.
Most companies focus on growing their customer base to make this happen.
Some most actionable techniques are listed below that can provide ways to increase market share.
Low price is the most common weapon which is used by many companies.
Low prices can increase your customers. But you can manage your low price with a discount Campaign.
Which can help to compete with your competitors with loss. You can start your business at a low cost overall.
You can offer a sessional discount and many other incentives and benefits to attract more customers.
Simply, by using low price, discount techniques you can increase your business as well as your market share.
To grow your market share introducing new products and features can play a vital role.
You can enhance your market share by introducing new features and products.
Customer feedback data can help you to make decisions about the development of new products.
Always focus on customer retention. So that, you could easily enhance your market share.
You can get market share by using referrals and customers satisfaction without any expenses.
Finding new demographics can also help you to increase your market share. For instance, MacDonald is expanding its business by using healthy menu options.
Because people prefer to eat a healthy menu that shows how the company tries to tackle the growing customer market.
One of the most famous ways to increase your market share is by acquiring competitors. To make this happen this is played by larger companies with enough capital.
For instance, Facebook’s acquisition of WhatsApp and Instagram. You can also increase your market share by increasing your brand awareness.
You can use advertising by social media to aware your customers of your brand and products.
Because it can help you to boost your business and market share also.
If one person can’t learn from his competitor it means that he is not illegible to run is business.
You should see your competitors traffic boosting strategy to boost your traffic also.
When Evaluating Market Share?
Market share analytics can help to make an idea about how big the market is and how big a share you have in the market.
There are many things to keep in mind when you are evaluating market share.
You should find the right metrics.
Brand mix can impact market share so keep it in mind when you are evaluating Market share.
Keep geography in mind while evaluating market share. You must keep in mind your progress when you are evaluating Market share.