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The Importance of Market Share

In business market share is one of the essential metrics that any company has, the reason for this is that market share is the percentage represented by a company or business in comparison with its competitors in the same market. Because of the importance of market share is also essential to identify in a very clear way the market in which your business is.

Impact

If you identify your business in the wrong market most of your business decisions that you will make with the assistance of the metrics collected by competitors and analyzed by your marketing teams can be representing the wrong data. Therefore, this will translate into negative business decisions which will affect your overall marketing strategies.

Market share represents how well you are doing in comparison with another player in the same line of business. Meaning that if you identify the wrong market, at the same time you are identifying your competitors wrong.

For that reason, businesses should always keep in mind the importance of market share and come up with strategies that will permit grow their market share by being profitable and at a minimum maintaining their current market share to be able to have a profitable business.
For similar content about market share, I invite you to read my recent post about “The Race for Market Share.” Click here to read more.

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