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The firm's performance relative to competitors can be measured by the proportion of the market that the firm is able to capture.

This proportion is referred to as the firm's market share and is calculated as follows: Market Share = Firm's Sales / Total Market Sales Sales may be determined on a value basis (sales price multiplied by volume) or on a unit basis (number of units shipped or number of customers served).

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Sales figures do not necessarily indicate how a firm is performing relative to its competitors.

Rather, changes in sales simply may reflect changes in the market size or changes in economic conditions.

While the firm's own sales figures are readily available, total market sales are more difficult to determine.

Usually, this information is available from trade associations and market research firms.

He has a broad range of experience serving industries such as technology, automotive, entertainment, gaming, construction, large retail, and wholesale.

Last modified 29-May-2015 16:06