# How Do You Calculate Relative Market Share?

How do you calculate relative market share? Market share is the percentage of total industry revenue that flows to your company. If you divide your percentage share by the percentage share of the largest company, you have your relative market share.

## What is relative market share?

Relative market share is a marketing metric used to compare the firm's market share to the largest competitor in the market. When calculating relative market share, the market leader's market share is used as the benchmark.

## What is relative market share in BCG matrix?

Relative market share can be calculated in terms of revenues or market share. It is calculated by dividing your own brand's market share (revenues) by the market share (or revenues) of your largest competitor in that industry.

## What is BCG matrix with example?

We use Relative Market Share in a BCG matrix, comparing our product sales with the leading rival's sales for the same product. For example, if your competitor's market share in the automobile industry was 25% and your firm's brand market share was 10% in the same year, your relative market share would be only 0.4.

## Related investments for How Do You Calculate Relative Market Share?

### What is Boston matrix in marketing?

The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands. The Boston Matrix is a popular tool used in marketing and business strategy. A business with a range of products has a portfolio of products. However, owning a product portfolio poses a problem for a business.

### How do you calculate market share in BCG?

Determining the Relative Market Share in BCG Matrix

Hi Tareq, in order to compute your company's relative market share (since your company has the leading market share) you need to divide your market share (92%) by the second largest market share company (6%). Here your relative market share would be 92% / 6% = 15.333.

### What is the formula for market growth?

Calculate market growth by subtracting the market size for year one from the market size for year two. Divide the result by the market size for year one and multiply by 100 to convert to a percentage.

### What does RMS stand for market share?

What is relative market share (RMS)? Relative market share is a metric that helps assess how a brand's position within the market relative to its peers.

### What is GE nine cell matrix?

The GE matrix was developed by Mckinsey and Company consultancy group in the 1970s. The nine cell grid measures business unit strength against industry attractiveness and this is the key difference. Whereas BCG is limited to products, business units can be products, whole product lines, a service or even a brand.

### How does BCG matrix work?

The BCG matrix assesses the company's product portfolio by placing each product, division or SBU (strategic business unit) on a 2×2 grid. The product life cycle is reflected by market growth, and the experience curve is mirrored by the relative market share.

### What is BCG growth rate?

Structure of the BCG Matrix

Market share compares the SBUs sales in the current year versus those of competitors. The market growth rate is this years industry sales minus the past years industry sales.

### What is market share tutor2u?

Market share is the percentage of total sales (by value) or total output that a business has in a specified market.

### How do you calculate market value?

Market value—also known as market cap—is calculated by multiplying a company's outstanding shares by its current market price. If XYZ Company trades at \$25 per share and has 1 million shares outstanding, its market value is \$25 million.

### What do you mean by cash cow?

A cash cow is a company or business unit in a mature slow-growth industry. Cash cows have a large share of the market and require little investment. Its return on assets is far greater than its market growth rate; as a result, Apple can invest the excess cash generated by the iPhone into other projects or products.

### Why do we use BCG matrix?

The Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It's also known as the Growth/Share Matrix.

### What is the Boston box Matrix?

The BCG growth-share matrix is a tool used internally by management to assess the current state of value of a firm's units or product lines. The BCG growth-share matrix contains four distinct categories: "dogs," "cash cows," "stars," and “question marks.”

### What are the 4 stages of the Boston Matrix?

Anyway, there are four stages to this cycle, they are: induction, growth, maturity and decline. So let's take a closer look at the product cycle! If a company feels that their product has reached maturity, they may choose to look into extension strategies.

### What is BCG matrix analysis?

The Boston Consulting Group Matrix (BCG Matrix), also referred to as the product portfolio matrix, is a business planning tool used to evaluate the strategic position of a firm's brand portfolio. Brand equity can be positive or. The BCG Matrix is one of the most popular portfolio analysis methods.

### What is market growth rate?

Market Growth rate is defined as the rise in sales or market size within a given customer base over a specific period of time. When a business analyses its market it requires interpreting its market growth rate. The sales growth is compared with the market growth rate.

### How do you calculate market share size?

Take your target market, and determine the penetration potential of your target market. Multiply target market by penetration rate to find your market size.

### How do you calculate market share increase?

Simply find your business's total sales revenue for your preferred time period and divide that number by your industry's total revenue during the same period. Once you have this result, multiply the number by 100 to generate your market share percentage.

### How is share growth calculated?

• Divide the final value of the stock by the initial value of the stock.
• Divide 1 by the number of years the growth occurred over.
• Raise the result from Step 1 to the result from Step 2.
• Take away 1 from the Step 3 result.

• ### What is unit market share?

"Unit market share: The units sold by a particular company as a percentage of total market sales, measured in the same units."

### What is GE model?

The GE / McKinsey matrix is a model used to assess the strength of a strategic business unit (SBU) of a corporation. It analyzes market attractiveness and competitive strength to determine the overall strength of a SBU.

### What is the difference between BCG and GE Matrix?

BCG matrix is used by the companies to deploy their resources among various business units. On the contrary, firms use GE matrix to prioritize investment among various business units. In BCG matrix only a single measure is used, whereas in GE matrix multiple measures are used.

### What is the other name for GE nine cell matrix?

Another name for GE 9 cell model is Stop light matrix.

### What is grand strategy matrix?

Grand strategy matrix is the instrument for creating alternative and different strategies for the organization. All companies and divisions can be positioned in one of the Grand Strategy Matrix's four strategy quadrants. The Grand Strategy Matrix is based on two dimensions: competitive position and market growth.