There are six different levels of market share targets to aim for, and the higher the target you achieve, the greater your influence in the market.
Basically, you should regularly check your market share and plan how to reach your top targets.
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The target market share will be calculated based on the following six markets:
Dominant Market Share
Relatively stable market share
Market impact share
Parallel competitive share
Market recognition share
Market Share
Dominant Market Share
A monopolistic market share is a situation where the top two or three companies have a monopoly on market share, and it is said that if their market share exceeds 73.9%, it is impossible to overturn that share in a short period of time .
Although this should be a final target to strive for, financial and development capabilities are also important in actually achieving it.
Achieving a monopoly market share means that your name is widely known not only among your competitors but also among consumers in the market.
Relatively stable market share
Relative market share is considered to be a target value that represents a situation in which a company's product or service has a market share of 41.7% or more when three or more companies are competing for market share.
Many companies aim for relative market share as a target value because a market share of 40% or more can ensure stable business operations.
If you can achieve a relatively stable market share, you will have more influence on the market than other companies.
Market impact share
Market influence share is a measure of whether or not a product has an impact on the market, and if the industry leader has a share of 26.1%, it can be said that the product has a large influence .
On the other hand, there is a high possibility that market share will be reversed, so care must be taken to increase market share through continuous activities to prevent this from happening.
However, in many cases, companies have market share solely through influencing the market, and they need to think about how to increase their market share while influencing the market.
Parallel competitive share
In a parallel competitive market, there is no market leader within an industry, and various companies compete to increase their market share and take the lead.
Exceeding 19.3% is the target to break away from the competitive situation, so if you want to ensure you secure your market share, it's important to conduct marketing that exceeds this target.
Market recognition share
Market awareness share means that your name is known to competitors and consumers in the market, but your influence on the market is weak and your actions will not attract attention.
While the target is 10.9%, the company needs to more than double its share to have a significant impact on the market.
Market Share
Market presence share indicates that a company has almost no influence within the market, and can be said to be at the line where it is barely permitted to have a presence in the market.
However, this is the first goal that any new entrant into the market must aim for, and if they are unable to secure at least a 6.8% share, they will have to consider withdrawing from the business.
How to calculate market share
There are two ways to calculate market share: absolute market share and relative market share.
In particular, when you want to calculate relative market share, you must first calculate absolute market share.
We will explain how to calculate market share for each market using the following two markets.
Absolute Market Share
Relative Market Share
How to calculate absolute market share
The calculation of absolute market share is as follows:
Absolute market share = sales of your product/service ÷ sales of the market to which your product/service belongs .
For example, if the market sales are 10 million yen and the sales of your company's products and services are 2 million yen, the calculation method would be as follows.
■ Calculation method
2 million yen ÷ 10 million yen = 20%.
How to calculate relative market share
In order to calculate relative market share, you must first calculate absolute market share.
The calculation of relative market share is as follows:
Relative market share = absolute market share of your product or service ÷ absolute market share of competitors' products or services in the market to which your product or service belongs .
For example, if the market sales are 10 million yen, the sales of your company's products and services are 2 million yen, and the sales of your competitors' products and services are 4 million yen, then applying the calculation method the relative market share would be 50%.