hi there in this short topic video we're

going to take a look at an important

concept when you're looking at market

analysis and it's a concept called

market share what we'll do in this video

is just focus on how market share is

calculated rather than look at the

details of the implications of market

share for businesses market share of

course is just one of several important

market analysis calculations that you

may need to undertake particular if

you're comparing and contrasting the the

performance and position of different

brands or products what is it

well market share is almost always

expressed as a percentage it's the

percentage share of the overall market

or market segment that is held by a

product by a brand or even by a business

now the key thing to remember about

market share is they can be calculated

based on the different numbers so for

example you might be looking at the

overall sales or revenues of the market

in total and basing the calculations on

that but you can also look at the volume

or the amount of products that are

produced or sold in the market that's

also a very important way of calculating

market share let's just look at a couple

of examples to illustrate what we mean

by this percentage firstly let's think

about the global market for the shipment

of personal computers who do you think

of the largest players in this market

who has the largest market share well

the market has changed dramatically over

recent years and now the largest

manufacturer and seller of pcs globally

is Lenovo a Chinese base verb who have

20 percent of the global market in 2015

and when you look at the remaining of

the other leading players in the market

you can see how their market share is

lower than Lenovo HP almost as large at

18 percent of the market Dell at 14 and

then three manufacturers of personal

computers Asus Apple and Acer have 7

percent of the global market each let's

take a look at one more example and

you'll see

different types of market share

information here so here we're looking

at the global market force known as

carbonated drinks cans of coke and pepsi

who you think has a largest market share

I bet most of you would guess that it's

Coca Cola in fact they have a whole

range of different brands don't they but

in total they have just under half or 49

percent of the total volumes shipped in

carbonated drinks globally 5 out of 10

our Coca Cola or coca-cola brands Pepsi

has a market share significantly lower

than coca-cola globally at 20 percent

which means together the two of them

account for about 70% of the global

market which means that the rest the

likes of dr. pepper and others are

fighting for their share which is 34 31%

and but that by the way is the data for

2015 that the billions of Units in

2015 now when you get some information

on markets and market size if you're

required to calculate market share what

you need to be looking for is what is

the total value of the market so so for

example you've got a table like this and

you are asked to calculate market share

the first thing you need to do is to

calculate the total size of the market

before you start to do any calculations

so if we have five businesses here a B C

D and E they each have separate sales

ranging from what's the lowest 175

company D up to 900,000 for business

C what we have to do is add all those

five businesses sales together if you

add them together it comes to two

million pounds this year that is the

size of the market if you've got that

information what you can then do is

calculate the market share of each of

those five businesses compared with the

total market size of 2 million so the

calculation for market share is the

business sales or the product sales

compared with the overall market sales

expressed as a percentage let's have a

look therefore for comfort

a it had sales of 250,000 we know that

the total market size is 2 million

250,000 divided by 2 million expressed

as a percentage is 12.5% company a has

12.5% share of the market in that

particular period and so what you can

then do is do the same calculation for

the other businesses we've done company

or business a we know that the largest

company or business is business C with

sales of nine hundred thousand nine

hundred thousand divided by the total

market sales of two million is a market

share of 45 percent hopefully you'll be

able to work out those numbers using the

technique we've provided there don't

forget that market share is just one

calculation of market analysis but it's

a very important one and subsequent

videos we'll take a look at how market

share is a very good indicator of the

competitive strength of a business and

what strategies businesses might have to

try to improve their market share but

for now that's the end of this short

video on how to calculate market share