Market share and its importance for b2b
Posted: Tue Dec 03, 2024 5:31 am
Market Share is the key that opens doors and opportunities for those who want to stand out in the Business to Business (B2B) market. It is no wonder that it is one of the most important indicators when the topic is market positioning.
In Portuguese, Market Share means market share. Generally, companies gain a share of the market and always aim for the best percentage of sales to stand out from the competition.
The 10 largest companies in the world in 2024, according to a ranking by retail email list Forbes Magazine , are a practical example of the importance of market share for a company.
According to the Global 2000, organizations in 61 countries achieved US$51.7 trillion in sales, US$4.5 trillion in profits, US$238 trillion in assets and US$88 trillion in market value.
In this context, learning how to increase market share becomes even more relevant. After all, a company that earns the respect of its customers and maintains a good position in the market is more competitive and promising.
Throughout the article, we will cover the following topics:
what is Market Share;
what is the importance of Market Share;
types of Market Share strategy;
how to increase and/or improve Market Share.
What is Market Share?
Market Share is the percentage of a company's participation in a market segment. The metric is used to measure the company's total revenue in relation to sales made and use this data to compare itself with its main competitors operating in the same market niche.
Furthermore, the index indicates the position of the business within the market. In other words, it is essential data for understanding competitive capacity.
Market Share is calculated as follows: company revenue (total sales) divided by the total revenue of the most important companies in the segment. The result is Market Share!
Example: Imagine that you work in the technology sector. Last year, the niche generated R$1 billion in sales and the company earned R$100 million. Your market share is 10%. In other words, the result indicates the relevance of your business in the market during this period.
How important is Market Share?
If you want to know how your brand is performing in the market, with detailed analyses in relation to your competitors, you need to know the importance of Market Share.
In practice, this metric works like a thermometer that indicates whether your company's performance is good or not in relation to its main competitors.
It is not easy to achieve market leadership, especially when you are competing with big brands with established track records. However, improving your market share is not impossible, and investing in increasing this position can bring about several changes for your business. Examples include:
more visibility in the market;
improvement in business positioning and brand recognition actions;
increased market influence;
possibility of expanding partnerships;
more chances of closing advantageous deals with customers and suppliers.
All these changes add benefits to the corporate experience. Check it out!
What are the advantages of Market Share for your business?
Discover the main benefits of the practice!
1. Improved brand recognition
Brand recognition is inseparable from the company's visibility in the market. Well-positioned companies are better seen and remembered by potential customers, partners and suppliers.
In the long term, it is a very positive factor, as it allows you and your brand to build an image of trust and stability in your field of activity.
2. Increased competitive advantage
The higher your company's market share, the better your chances of competing in an advantageous position over your competitors. Reaching this position is a reason to celebrate, because competitive advantage is generally associated with factors such as:
increased product quality;
attractive prices;
company maturity;
ability to stand out from the competition.
3. More credibility
A company's credibility is not an immediate achievement, but rather the result of a process that requires time, dedication and hard work. However, achieving a good position in the market is a factor that impacts a brand's reliability.
In Portuguese, Market Share means market share. Generally, companies gain a share of the market and always aim for the best percentage of sales to stand out from the competition.
The 10 largest companies in the world in 2024, according to a ranking by retail email list Forbes Magazine , are a practical example of the importance of market share for a company.
According to the Global 2000, organizations in 61 countries achieved US$51.7 trillion in sales, US$4.5 trillion in profits, US$238 trillion in assets and US$88 trillion in market value.
In this context, learning how to increase market share becomes even more relevant. After all, a company that earns the respect of its customers and maintains a good position in the market is more competitive and promising.
Throughout the article, we will cover the following topics:
what is Market Share;
what is the importance of Market Share;
types of Market Share strategy;
how to increase and/or improve Market Share.
What is Market Share?
Market Share is the percentage of a company's participation in a market segment. The metric is used to measure the company's total revenue in relation to sales made and use this data to compare itself with its main competitors operating in the same market niche.
Furthermore, the index indicates the position of the business within the market. In other words, it is essential data for understanding competitive capacity.
Market Share is calculated as follows: company revenue (total sales) divided by the total revenue of the most important companies in the segment. The result is Market Share!
Example: Imagine that you work in the technology sector. Last year, the niche generated R$1 billion in sales and the company earned R$100 million. Your market share is 10%. In other words, the result indicates the relevance of your business in the market during this period.
How important is Market Share?
If you want to know how your brand is performing in the market, with detailed analyses in relation to your competitors, you need to know the importance of Market Share.
In practice, this metric works like a thermometer that indicates whether your company's performance is good or not in relation to its main competitors.
It is not easy to achieve market leadership, especially when you are competing with big brands with established track records. However, improving your market share is not impossible, and investing in increasing this position can bring about several changes for your business. Examples include:
more visibility in the market;
improvement in business positioning and brand recognition actions;
increased market influence;
possibility of expanding partnerships;
more chances of closing advantageous deals with customers and suppliers.
All these changes add benefits to the corporate experience. Check it out!
What are the advantages of Market Share for your business?
Discover the main benefits of the practice!
1. Improved brand recognition
Brand recognition is inseparable from the company's visibility in the market. Well-positioned companies are better seen and remembered by potential customers, partners and suppliers.
In the long term, it is a very positive factor, as it allows you and your brand to build an image of trust and stability in your field of activity.
2. Increased competitive advantage
The higher your company's market share, the better your chances of competing in an advantageous position over your competitors. Reaching this position is a reason to celebrate, because competitive advantage is generally associated with factors such as:
increased product quality;
attractive prices;
company maturity;
ability to stand out from the competition.
3. More credibility
A company's credibility is not an immediate achievement, but rather the result of a process that requires time, dedication and hard work. However, achieving a good position in the market is a factor that impacts a brand's reliability.