Market Share

(noun)

Percentage of a specific market held by a company.

Related Terms

Examples of Market Share in the following topics:

  • Porter's Competitive Strategies

    • Michael Porter classifies competitive strategies as cost leadership, differentiation, or market segmentation.
    • Segmentation targets finding specific segments of the market which are not otherwise tapped by larger firms.
    • Empirical research on the profit impact of marketing strategy indicates that firms with a high market share are often quite profitable, but so are many firms with low market share.
    • The least profitable firms are those with moderate market share.
    • Porter explains that firms with high market share are successful because they pursue a cost-leadership strategy, and firms with low market share are successful because they employ market segmentation or differentiation to focus on a small but profitable market niche.

  • Competitive Dynamics

    • The competition is a moving-target, ever-evolving and adapting to better capture market share and profitability; therefore competition is a critical area of analysis for strategic managers.
    • In marketing and strategic management, competitor analysis is an assessment of the strengths and weaknesses of current and potential competitors.
    • The folio plot visualizes the relative market share of a portfolio of products versus the growth of their market.
    • Note that the highest-selling product, Dorian, shows the highest market growth and a high (though not the highest) market share; the lowest-selling, Zodial, shows both low market growth and low market share.

  • Benefits of Innovation

    • Innovation may be linked to positive changes in efficiency, productivity, quality, competitiveness, and market share, among other factors.
    • Innovation is the development of customer value through solutions that meet new, undefined, or existing market needs in unique ways.
    • Solutions may include new or more effective products, processes, services, technologies, or ideas that are more readily available to markets, governments, and society.

  • Assessing an Organization's Technological Needs

    • Technology Roadmapping - ascertaining the trajectories of technological advancement and applying business or market needs to this assessment.
    • By keeping pace with technological innovation, and offering products early enough to capture the majority of the market, businesses can gain competitive advantage.
    • If a business is too late to enter a newly emerged technological market, it can be quite difficult to attain a high percentage of the market share, as represented on the y-axis (which has often been claimed by other incumbents, as the intersecting yellow line on the graph indicates).

  • Introduction to Red Ocean and Blue Ocean Strategy

    • The thesis behind the blue ocean strategic perspective is that competing in an established market is not a rational option for investment.
    • In this case, winning market share is a zero sum game, where the gains of one company are a direct loss of another.
    • The second figure illustrates this well, as the substantial value added lies in differentiating into new strategies to capture new market share as opposed to competing for established market share.
    • Other considerations in generating new market share concern identifying non-consumers.
    • Finding a way to look across this (utilizing the 6 paths above) to identify and fill those unique needs is the way in which niche markets are created.

  • The Impact of External and Internal Factors on Strategy

    • Marketing and sales: building a brand, selling products, and identifying retail strategies and opportunities
    • Markets (customers): Demographic and socio-cultural considerations, such as who the customers are and what they believe, are critical to capturing market share.
    • Understanding the needs and preferences of the markets is essential to providing something that will have a demand.
    • Consider the size, market share, branding strategy, quality, and strategy of all competitors to ensure a given organization can feasibly enter the market.
    • Labor markets: Acquiring key talent and satisfying employees (relative to the competition) is critical to success.

  • Promoting Ethical Behavior through the Planning Process

    • Marketing ethics deals with the moral principles behind the operation and regulation of marketing.
    • A marketing plan is a comprehensive blueprint that outlines an organization's overall marketing efforts.
    • A marketing process can be realized by implementing a marketing mix, and its degree of success (based on certain measures) can indicate how to control the future iterations of the marketing plan.
    • The implementation phase involves putting the marketing strategy into action by using the marketing mix (Price, Promotion, Product, and Place).
    • The control phase of marketing planning involves measuring the success of a plan through analysis of quantifiable measures such as sales, market share, and expenses.

  • Growth Strategy

    • An example of horizontal integration would be Apple entering the search-engine market or a new industry related to laptops and smartphones.
    • Market penetration occurs when a company penetrates a market in which current products already exist.
    • This strategy generally requires great competitive strength, a strong brand, or both, as most market penetrations demand actively taking market share from current incumbents.
    • Market development strategy entails expanding the potential market through new users or new uses for a product.
    • Market research is critical in development strategies.

  • Using Technology to Communicate

    • Communication technologies support many types of messaging and information sharing in organizations.
    • Technologies for e-mailing, messaging, video conferencing, and document-sharing in most organizations are fully integrated into how work is conducted and how people interact.
    • Electronic memos that are e-mailed or documents shared via computer servers are examples.
    • Internet marketing as way to advertise products and services to customers
    • Mobile marketing strategies to advertise products to customers based on their current location

  • Functional Structure

    • An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing.
    • In a functional structure, a common configuration, an organization is divided into smaller groups by areas of specialty (such as IT, finance, operations, and marketing).
    • Functional departments arguably permit greater operational efficiency because employees with shared skills and knowledge are grouped together by functions performed.
    • Each different functions (e.g., HR, finance, marketing) is managed from the top down via functional heads (the CFO, the CIO, various VPs, etc.).