How Do You Spell MARKET SHARE?
Pronunciation: [mˈɑːkɪt ʃˈe͡ə] (IPA) 
Pronunciation: [mˈɑːkɪt ʃˈe͡ə] (IPA)
Market share is a term used in business to describe the portion or percentage of total sales revenue held by a particular company or product within a specific market. It is a measure of a company’s competitive position and its level of dominance or presence in the marketplace relative to its competitors.
Market share can be calculated by dividing a company's sales revenue by the total sales revenue of all companies operating within the same market. It serves as an indicator of a company's success and popularity within its industry. A higher market share indicates a larger customer base and a stronger market presence, which can often lead to increased profitability and economies of scale.
Companies with higher market shares may benefit from economies of scale, enabling them to offer lower prices, invest more in advertising and marketing, and negotiate better deals with suppliers. Conversely, companies with lower market shares may struggle to compete and may need to resort to alternative strategies to gain a larger share, such as differentiation through unique product offerings or superior customer service.
Market share is closely monitored by companies as well as investors and analysts, as it provides valuable insights into a company's competitive position and potential for growth. It is a crucial metric for evaluating the success of marketing campaigns, assessing market trends, and making strategic business decisions.
The word "market share" does not have a specific etymology of its own. It is a combination of the words "market" and "share", both of which have their own etymologies.
- "Market" comes from the Latin word "mercatus" meaning "a buying and selling" or "trading". It evolved into the Old English word "mearcet", which referred to a marketplace or a meeting place for trading goods and services.
- "Share" comes from the Old English word "scearu" meaning "a part" or "division". It originated from the Proto-Germanic word "*skeraną". In the context of market share, it refers to the portion or percentage of the total market that a company holds.
