Market share analysis

Market share analysis is a part of market analysis and indicates how well a firm is doing in the marketplace compared to its competitors.

Givon, Mahajan, and Muller have researched spreadsheet and word processing software firms to give a clearer image of how to determine market share in the software industry. They propose six factors to help estimate the value of market share (1997):

  • unit or dollar sales,
  • user base (since piracy and brand switching effect),
  • market definition (scope of definitions),
  • scope of denominator (which other brands included),
  • time frame length,
  • product definition (brand, product line, or strategic business unit).
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