The market share is the percentage of an economic market or industry that's accounted for by a specific business. The market share can be based on units or revenue. The relative market share compares a business' market share with that of the largest competitor within the market or industry. Both of these metrics are important financial measures for businesses since a market or industry is generally viewed as an equity pie divided between businesses that operate (the sale of goods and services) within that market or industry. Businesses with a larger market share have greater potential profit than those with less market share. In addition, businesses that are increasing their market share are effectively winning in the market by taking market share from their competitors.
This recipe demonstrates how to calculate the...