1. What is Market Share Increase?

Market share increase measures the percentage growth in a company's sales relative to the total market sales. It indicates how well a company is performing compared to its competitors and the overall market growth.

2. How Does the Calculator Work?

The calculator uses the market share increase formula:

Where:

• \( \text{New Share} \) — Current market share percentage
• \( \text{Old Share} \) — Previous market share percentage

Explanation: This formula calculates the percentage change in market share from the old period to the new period, showing the growth or decline in market position.

3. Importance of Market Share Analysis

Details: Tracking market share changes helps businesses understand their competitive position, measure the effectiveness of marketing strategies, and make informed decisions about resource allocation and growth initiatives.

4. Using the Calculator

Tips: Enter both old and new market share values as percentages. Ensure the old share value is greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative increase percentage mean?
A: A negative percentage indicates a decrease in market share, meaning the company's portion of the total market has declined.

Q2: How often should market share be calculated?
A: Market share should be calculated regularly (quarterly or annually) to track trends and measure the impact of business strategies over time.

Q3: What factors can affect market share?
A: Factors include competitive actions, pricing strategies, product quality, marketing effectiveness, customer preferences, and overall market conditions.

Q4: Is market share the same as sales growth?
A: No. Sales growth measures increase in a company's sales, while market share measures the company's sales relative to total market sales.

Q5: Can market share exceed 100%?
A: No, market share is always expressed as a percentage of the total market, so it cannot exceed 100%.