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How to calculate Relative market share

The Relative market share formula, with plain worked examples you can check yourself.

Relative market share = S ÷ T

The result is a number in ×.

Worked examples

S = 40% · T = 20%Relative market share = 2×
S = 15% · T = 30%Relative market share = 0.5×
S = 37.5% · T = 25%Relative market share = 1.5×

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Mission & Competition.

Related terms

Market shareMission statementVertical integrationFirst-mover advantageBarrier to entryCost leadership

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