Question

In 2014, a business had product sales of £108,000. In 2015, due to the arrival of a new competitor,
sales fell by 10%. Total market size by value in 2015 was £1,800,000.
Calculate the businesses market share in 2015. Show your workings

Answer 1

The market share of the business in 2015 is 5%.

What is market share?

The market share of a business is the portion or percentage of total market size that it controls.  For instance, the business in question has 5% market share.  This implies that it controls only a small portion of the market where it sells its products.

Data and Calculations:

Sales in 2014 = £108,000

Fall of sales in 2015 = 10%

Sales in 2015 = £97,200 ($108,000 x (1 - 10%)

Total market size in 2015 = £1,800,000

The business's market share in 2015 = 5.4% (£97,200/£1,800,000 x 100)

Thus, the market share of the business in 2015 is 5%.

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