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Strategy · business glossary

What is Market share?

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

definition

The percentage of total sales in a category or market that one business captures.

Market share explained

Market share is the percentage of total sales in a market that one company captures.

formula

Market share % = Company sales ÷ Total market sales × 100

example

Selling ₹20 crore in a ₹200 crore market gives a 10% market share.

why it matters

Higher share often brings scale advantages and bargaining power.

common mistake

Buying share with discounts that destroy profits.

Frequently asked questions

What is Market share?

The percentage of total sales in a category or market that one business captures. Market share is the percentage of total sales in a market that one company captures.

How do you calculate Market share?

Market share % = Company sales ÷ Total market sales × 100. Selling ₹20 crore in a ₹200 crore market gives a 10% market share.

Why does Market share matter?

Higher share often brings scale advantages and bargaining power.

What is a common mistake with Market share?

Buying share with discounts that destroy profits.

Related terms

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