Market Share
Increasing market share is one of the most
important objectives used in business. The main advantage of using market
share is that it abstracts from industry-wide macro environmental variables
such as the state of the economy, or changes in tax policy.
It can be expressed as
a company's sales revenue (from that market) divided by the total sales
revenue available in that market. It can also be expressed as a company's
unit sales volume (in a market) divided by the total volume of units
sold in that market.
According to the national environment, the respective share of different
companies changes and hence this causes change in the share market values;
the reason can be political ups and downs, any disaster, any happening
or mis-happening.
Other objectives include
return on investment (ROI), return on assets (ROA), and target rate
of profit. Market share has the potential to increase profits as profit
leads to more customers with a higher demand for a particular product
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