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What is relative market share?

Updated: 9/11/2023
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13y ago

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AnswerRelative market share is comparing market share of a company with that of its next biggest competitor.

Having a relative Market share of >1 means you are the market leader that outperforms the next biggest by this factor. A relative market share <1 shows how far away you are from being the market leader.

So in other words, the relative market share enables a firm to know the dominant strategy to adapt when competing with its number one competitor in the same industry in terms of product pricing and profit making.

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