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Market Share
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Sales figures do not necessarily indicate how a firm is performing relative to its
competitors. Rather, changes in sales simply may reflect changes in the market size or
changes in economic conditions.
The firm's performance relative to competitors can be measured by the proportion of the
market that the firm is able to capture. This proportion is referred to as the firm's market
share and is calculated as follows:
Market Share = Firm's Sales / Total Market Sales
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Share
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by
Mohit12
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on
2/22/2010 12:34:15 PM
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