Relative market share
- Why: To better understand your market position
- What: To measure how large your share of a market is compared to your competition
- When: When a company wants to grow or maintain market share in specific markets
- The question this indicator helps you to answer: how well are we developing our market share in comparison to our competitors?
Why does this KPI matter?
The relative market share metric essentially indexes a firm’s or a brand’s market share against that of its leading competitor and therefore gauges its true market strength and identifies opportunities for improvement. To explain, whereas 20% might be the dominant market share in many markets, it might be a distant number two or lower than others: hence ...