Relative market share
Relative market share compares an organisation’s or product’s share with that of a specified competitor, commonly the largest relevant competitor. It differs from absolute share of the total market. Define the market, period and basis consistently. In portfolio frameworks it is a proxy for competitive position rather than proof of cost advantage or profitability, so consider market boundaries and business conditions.
Worked example
A unit has 20% market share and its largest competitor 40%. Relative share is 20/40 = 0.5 on that comparison.
Common mistake
A relative share above one means larger than the comparator, not more than 100% of the entire market.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |
