Market share analysis
Market share analysis is like counting how many toys you and your friends have in total when you are playing together. In the world of grown-ups, it's like figuring out how much of a certain product a company sells compared to how much all the other companies sell.
Let's pretend there are only two companies in the world, Company A and Company B, and they both sell only cookies. Company A sells 50 cookies and Company B sells 100 cookies. To figure out the market share, we add the number of cookies sold by both companies to get 150. Then we use a calculator to see what percentage of the 150 is sold by each company. For Company A, we do 50 divided by 150 which equals 0.33 or 33%. For Company B, we do 100 divided by 150 which equals 0.67 or 67%.
This means Company B has a bigger market share because they sell more cookies out of all the cookies sold by both companies combined.
When companies do market share analysis, they use this same process to figure out how much of a certain product they sell compared to all the other companies. It helps them know how well they are doing and if they need to make any changes to compete better.
Let's pretend there are only two companies in the world, Company A and Company B, and they both sell only cookies. Company A sells 50 cookies and Company B sells 100 cookies. To figure out the market share, we add the number of cookies sold by both companies to get 150. Then we use a calculator to see what percentage of the 150 is sold by each company. For Company A, we do 50 divided by 150 which equals 0.33 or 33%. For Company B, we do 100 divided by 150 which equals 0.67 or 67%.
This means Company B has a bigger market share because they sell more cookies out of all the cookies sold by both companies combined.
When companies do market share analysis, they use this same process to figure out how much of a certain product they sell compared to all the other companies. It helps them know how well they are doing and if they need to make any changes to compete better.