The percentage of sales in a particular industry or market that can be attributed to a particular company, this is known as market share. To calculate market share, you would divide the company’s total sales over a period by total sales in the industry. The metric can help understand that company’s influence in the industry and its performance in comparison to its competitors.
For example…
Nice Tables Incorporated produce most of the dining tables in Eatsville. They were the original dining table masters and their total sales in the last year were two hundred thousand dollars. If the total number of dining tables sold in Eatsville is five hundred thousand dollars, then Nice Tables’ market share is two hundred thousand divided by five hundred thousand. Expressed as a percentage, this is forty percent. Quite a decent market share!
