Market Share

The percentage of a certain product or service total revenues that a company earned over a period of time.  It can be calculated by dividing the company’s revenues from that product or service by the product/service’s total revenues. Companies usually try to increase their market share in order to gain a great scale of operations. Change in a company’s market share can signal changes in its competitveness.  A company with an overlarge market share may have little room for expansion unless the industry is expanding rapidly as well..

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