On quotas and stock value

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But what is the meaning of market share? How is it calculated? We learn about this in this article. What is Market Share? Market share means the percentage of total sales that the company acquires during a specific period of time. Market share is used to give a general idea of ​​the volume of sales in the market, and the strength of the business among competitors. others, then it is a striking force. within this market. Gains or losses in market share have a direct impact on the company's market value , and also affect the stock performance. This is related to the conditions of the business, especially if a fair market is available. The company's share of total sales in the market in which it operates is estimated during a specific period of time.


If a smartphone company sells approximately 50 million phones, and the total value of sales in the market during the same period is 100 million phones, then the market share is equivalent to 50%. Read also about: market demand curve phone number database How important is market share? The increase or decrease in market share is an important measure for investors, as it is something they look at very carefully as an indicator of the competitiveness of the company’s products. These increases in shares allow for greater profits, which makes the process of expanding the market and expanding its share non-negotiable, and the importance of The market share is as follows: Market share contributes to opening new paths and provides insights for the company to know the extent of its growth, the value of net profits, and everything related to market movement, which helps companies increase their revenues and sales.

   

It helps companies open new horizons in order to expand their scope and improve the level of profits. It encourages companies to work and continue by increasing their products in the market, and diversifying among types, in order to reach the largest number of customers with the possibility of obtaining potential customers. Rapid growth over competitors in terms of market share. Based on market share, the company thinks carefully before taking any new step in the market. According to indicators and data about its market share, it can achieve rapid growth in the shortest possible period. Read also about: seasonal marketing How do you know and calculate your market share?