Relative market share can also be calculated by dividing brand sales by largest competitor sales because the common factor of total market sales (or revenue) cancels out.
Relative market share is calculated by subtracting a company’s market share from 100 to find the percentage it does not control. If Company Z controls 30% of its market, this means it does not control 70%. From there, the company’s market share is divided by the percentage of the market it does not control.
Relative market share can be calculated in terms of revenues or market share. It is calculated by dividing your own brand’s market share (revenues) by the market share (or revenues) of your largest competitor in that industry.
Relative market share is a marketing metric used to compare the firm’s market share to the largest competitor in the market.
Example for calculating relative market share
- Brand A = 40%/30% = 1.33.
- Brand B = 30%/40% = 0.75.
- Brand C = 20%/40% = 0.50.
- Brand D = 6%/40% = 0.15.
- Brand E = 4%/40% = 0.10.
Market share is calculated by dividing the company’s total revenues by the total sales of the whole industry during a specific period of time. This indicator is used by data analysts and other professionals to assess the size, or presence, of a company within a given industry.
What is BCG matrix with example?
We use Relative Market Share in a BCG matrix, comparing our product sales with the leading rival’s sales for the same product. For example, if your competitor’s market share in the automobile industry was 25% and your firm’s brand market share was 10% in the same year, your relative market share would be only 0.4.
“Unit market share: The units sold by a particular company as a percentage of total market sales, measured in the same units.”
Relative market share compares the market share of a company with that of its next biggest rival. A company which has a relative Market share means that they are the market leader which eclipses their competitor by this factor.
How do you calculate relative growth rate?
In classical growth analysis, relative growth rate (RGR) is calculated as RGR = (ln W2 – ln W1)/(t2 – t1), where W1 and W2 are plant dry weights at times t1 and t2.
What is the BCG model in marketing?
The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.
What Is Relative Value?
- Relative value looks at an asset’s worth by comparing it with the value of similar assets.
- Relative value methods allow investors and analysts to make better apples-to-apples comparisons across potential investments.
A company’s market share is its sales measured as a percentage of an industry’s total revenues. You can determine a company’s market share by dividing its total sales or revenues by the industry’s total sales over a fiscal period. Use this measure to get a general idea of the size of a company relative to the industry.
Market share variance = Standard contribution margin per unit × Actual industry volume × (Actual market share – Budgeted market share).
Divide the number of issued shares by the number of authorized shares, and then multiply by 100 to convert to a percentage.