Market share
Market share is an organisation’s sales expressed as a proportion of total sales in a defined market and period. Calculate it using consistent value or volume measures, with the same products, geography and period in numerator and denominator. A change can reflect the organisation’s performance or changes in its competitors and market boundaries. Share is a useful competitive indicator but does not alone establish profitability, customer loyalty or economic value creation.
Worked example
A supplier sells 24,000 units in a market of 160,000 units: volume market share = 24,000 ÷ 160,000 × 100% = 15%. Its value share could differ if its selling prices differ from competitors’ prices.
Common mistake
Comparing value sales with market volume, or confusing ordinary market share with BCG relative market share.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
