Knowing your own market share, you can see and predict the company's development prospects. For this, it is important to strike a balance between market dynamics and share changes. Indeed, it is obvious that such a good phenomenon as maintaining and increasing the share can be completely offset by the large-scale growth of the entire market, which outstrips the growth of the company's share. This means that competitors are performing much better.
Instructions
Step 1
By and large, for each enterprise the issue of calculating the occupied market share becomes an important element of planning activities for different periods. Quite often, in the plans of companies, you can see the goal, for example, to occupy a market share of 50% in 5 years. Obviously, the market share of any enterprise is calculated by the usual division of the current sales volume by the total market capacity. If you know your own sales, it is easy to calculate your market share.
Step 2
However, it seems so at first glance. The most important variable in the formula for calculating the share is the market capacity, which is difficult to adequately and accurately assess. In fact, for a company operating in a certain market and analyzing it, the problem of how to calculate market share boils down to answering the question: "How to accurately and correctly calculate the market size?"
Step 3
Market capacity refers to the entire volume of transactions carried out on it for a certain period of time. In the theory and practice of marketing, different methods are used to determine it, for example, an estimate based on production volumes, adjusted for the value of exports and imports of goods. They also use formulas that include the number of potential consumers of goods, the average percentage of purchases for the period and the price of goods. They are used to assess the capacity and data from government statistics for various sectors of the economy. In addition, many companies are more inclined to rely on their own methods of calculating capacity, which are developed depending on the specifics of the market and the products being sold.
