“Market share” the percentage of an industry, or a market’s total sales, that is earned by a particular company over a specified time period.
Market Share = ( Company’s Sales over a certain period/Total sales of the industry over the same period)
This metric is used to give a general idea of the size of a company in relation to its market and its competitors.
Example: Lets us take the example of a biscuit company called “Sands Zenith”. If consumers as a whole buy 100 packets of biscuit (of all brands as a whole), and 40 of which are from “Sands Zenith”, Sands Zenith holds 40% of the market share in the biscuit industry.