Market share analysis

From Wikipedia, the free encyclopedia

Market share analysis is an important 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):

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


[edit] References

Givon, M. Mahajan, V. and Muller, E. (1997). "Assessing the Relationship between the User-Based Market Share and Unit Sales-Based Market Share for Pirated Software Brands in Competitive Markets.". Technological forecasting and social change 55 (2): 131-144. doi:10.1016/S0040-1625(96)00181-3.