market share

noun

Definition of market share

: the percentage of the market for a product or service that a company supplies

Examples of market share in a Sentence

The company has gained market share in the past year. companies working to increase their market shares

Recent Examples on the Web

Indivior has been subpoenaed by the California Department of Insurance over its blockbuster opioid addiction treatment, Suboxone Film, which is rapidly losing market share due to competition from generics, Reuters reports. — Ed Silverman, STAT, "Pharmalittle: Antibiotic shortages putting patients at risk; EMA fears staff losses as HQ move nears," 1 June 2018 In addition, there are competitors — like Sinemia — chipping away at market share and perhaps making MoviePass’ survival even more fraught. — Cary Darling, Houston Chronicle, "To MoviePass or pass on MoviePass? That is the question," 16 May 2018 During 2017, Associated continued to grow its customer deposit market share across its footprint. — Paul Gores, Milwaukee Journal Sentinel, "Profits increased 15% for Associated-Banc Corp in 2017," 25 Jan. 2018 Under Armour responded by stepping up its presence in amateur basketball and, according to several metrics, passed adidas in market share behind Nike. — Mark Zeigler, sandiegouniontribune.com, "Puma jumping into basketball is good for players, but it is good for the game?," 5 July 2018 Many states use all-payer claims databases to better understand the market share of insurers and providers and its impact on price, inflation, and access. — John Freedman, STAT, "Every state needs a database with all health insurance claims, not just some," 5 June 2018 Retailing is an illustration of how AI can help large firms win market share. — The Economist, "Two-facedThe sunny and the dark side of AI," 28 Mar. 2018 The obviousness of the report’s considered and sober point of view only underlines how transit tech startups, in their rush to secure market share and increase valuations, may be rushing to scale, but, in the process, become their own worst enemies. — Patrick Sisson, Curbed, "How cities should regulate the scooter surge," 11 July 2018 Image Marvel Studios likes to supersize everything — its heroes, blowups, runtimes, opening theaters, market share and so on. — Chris Mckenna, New York Times, "Review: ‘Ant-Man and the Wasp’ Save the World! With Jokes!," 4 July 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'market share.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

9 Oct 2018

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The first known use of market share was in 1954

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More Definitions for market share

market share

noun

Financial Definition of market share

What It Is

Market share refers to a company's portion of sales within the entire market in which it operates. This metric indicates a company's size within its market.

How It Works

The formula for market share is:

Market Share = (Particular Company's Sales Revenue in Time Period X) / (Relevant Market's Total Sales Revenue in Time Period X)

Let's assume Company XYZ sells $50 million a year in widgets. If the total amount of widgets sold from all companies within the market totals $100 million, then Company XYZ has a market share equal to 50%.

Market Share = ($50 million) / ($100 million)

Why It Matters

As the market for a good or service grows, many analysts view the maintenance or increase in market share as a sign of a company's competitiveness. Increases in market share might come from innovation, broadening demographic appeal, lower prices, or simply advertising.

Sometimes a company garners too much market share and becomes part of an oligopoly or even becomes a monopoly. If this is the case, it could violate anti-trust laws and be ordered to divest assets or take some other action to increase competition.

Source: Investing Answers

market share

noun