Looking to increase your Judi bola business market share? Find out how to calculate and improve your share of the market.
What is market share?
Market share is the percentage of total sales in an industry generated by a business or product. If you have a large market share, your business is likely pretty successful. If you have a small market share, you may be looking for ways to increase it. To increase their market share, small businesses must implement a growth strategy, which often includes analyzing competitors, introducing more efficient products and services, and providing excellent customer service.
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How do you calculate market share?
Knowing how you stack up against your competition is critical to running a successful business, and one of the ways to gain a clear picture of where you stand in your industry is to calculate your business’s market share.
Market share is the percentage of total sales within an industry that the sales of a particular business represents, said Ian Kelly, vice president of operations for NuLeaf Naturals.
“It’s calculated by dividing the total revenue a business makes per industry by the total revenue made within that defined industry,” Kelly told business.com.
For example, if your business reported its gross revenue of $2 million and the industry in which your business operates has a total gross revenue of $50 million, your market share would be 4%.
Company’s revenue ($2 million) / Entire market revenue ($50 million) = 0.04 (4% market share)
There are different types of small business accounting software that include digital marketing tools designed to help analyze your market share projection and provide up-to-date industry and market analysis.
What defines a business with small market share?
Businesses with small or low market share are usually defined as those that have small percentages of the total sales within their respective industries. Using a market share growth strategy, like the BCG matrix, can help your business gain insights on industry competition. The BCG matrix is a marketing strategy designed to support businesses with growth opportunities and long-term financial planning by evaluating its products and services.
“For small businesses, a small market share could easily be less than 1% or up to nearly half of the total revenue per industry, depending on the scope of the calculation and the number of competitors,” Kelly said. “This is because market share can be defined at different levels – global, national, statewide, countywide, or even within cities and neighborhoods.”
Kelly said businesses with small market share can be defined by their market leader because the competition depends on the industry as well. The shares of competitors may be higher in some industries and lower in others.