Market Share Analysis: Understanding your Position against the Competition
Introduction
In an increasingly competitive market, it is no longer enough to have a good product or an innovative service. For sustainable growth, it is crucial to precisely understand one’s position, identify key competitors, and comprehend the dynamics influencing sectoral developments. The analysis of market share then becomes a powerful strategic compass. It enables executives, marketing managers, or product managers to make rational decisions, prioritize the right investments, and anticipate future disruptions.
But how can one obtain a truly useful analysis? What data should be collected, how should it be structured, and above all, how to move from observation to action?
What is Market Share?
The market share represents the percentage a company holds in a defined market, compared to the total sales or active users in that market.
It can be measured in two ways:
- By volume: number of units sold
- By value: revenue generated
Practical example: if the global market for the sector reaches 100 million euros and your company generates 10 million in revenue, your market share is 10% by value. This is a key indicator for positioning your company against other players.
Understanding this indicator can reveal much more than a simple figure. It offers an overview of your real competitiveness, and sheds light on your future strategic options.
Why Analyze Market Share?
Market share analysis is much more than a statistical tool. It allows you to:
1. Evaluate your Competitive Position
Understanding whether you are an undisputed leader, a growing challenger, or a niche outsider is fundamental for adjusting your marketing and commercial strategy.
2. Identify Growth Areas
Variations in market share, by segment or geographical area, often reveal untapped opportunities or competitive weaknesses to exploit.
3. Measure the Impact of your Campaigns
A progression in your market share following a specific action is an excellent indicator of marketing performance or product relevance.
4. Attract Investors or Partners
A stable or growing market share indicates market traction, which is a reassuring factor for external partners.
5. Prepare Offensive or Defensive Actions
Monitoring market share evolution allows you to react quickly in the face of an aggressive rise of a new competitor.
The Different Types of Market Share to Analyze
1. Relative Market Share
It compares your results to those of the market leader. It is essential for assessing your ability to directly compete with the largest players.
2. Segmented Market Share
By region, category, channel, or customer typology. This approach allows you to zoom in on sub-markets and refine your strategic priorities.
3. Projected Market Share
Thanks to simulations based on realistic assumptions, you can estimate your future market shares and adjust your medium-term objectives.
4. Market Share Gained or Lost
It analyzes the dynamics over time, by identifying evolution trends and the movements of your direct competitors.
How to Analyze your Competitors’ Market Share?
Here is a 5-step operational method to build a reliable analysis:
Step 1 – Define the Scope of Study
Clearly define your analysis scope: geographical area, product categories, customer typologies. Without this initial rigor, the comparison loses its relevance.
Step 2 – Collect Relevant and Reliable Data
Utilize multiple sources:
- Market studies (Statista, Gartner, Xerfi, Eurostat)
- Competitor activity reports
- Competitive intelligence tools (SimilarWeb, Semrush, Owler)
- Internal data: CRM, sales feedback, sales history
Step 3 – Perform Market Share Calculations
Apply the formula:
Market Share = (Company Sales / Total Market Sales) x 100
Do this by segment for greater granularity.
Step 4 – Analyze Dynamics over Time
Trends often reveal more than absolute values. Who is gaining? Who is losing ground? Is there an emergence of new players?
Step 5 – Derive Strategic Orientations
Based on these findings, you can direct your resources where the impact is maximal, or address your weaknesses through targeted actions.
Tools for Market Share Analysis
Depending on your resources and analytical maturity level, you can use:
- Basic: Excel, Google Sheets, combined with manual data
- Intermediate: Tableau, Power BI, Google Data Studio
- Advanced:
- Semrush, SimilarWeb (digital traffic and audience estimation)
- Crayon, Klue (strategic intelligence and battlecards)
- InnovFast (AI solution specialized in innovation and market potential estimation by segment)
Case Study: Market Share Analysis in the Automotive Industry
Let’s take the electric vehicle market in France to illustrate the approach.
Contextual Data:
- High-growth market
- Presence of traditional players (Renault, Peugeot)
- Aggressive new entrants (Tesla, BYD, MG)
What the Analysis Reveals:
- Tesla dominates by value but not by volume
- Renault masters B segments with the Zoé
- BYD gains positions through B2B leasing
Strategic Implications:
A company wishing to position itself can:
- Target neglected segments (commercial vehicles, urban compact vehicles)
- Offer complementary services (application, home charging, smart warranty extension)
How to Leverage your Analysis?
Once your analysis is complete, it is essential to use it as a decision-making lever:
- Prioritize the most profitable and least competitive segments
- Adapt your pricing policy to your current position
- Identify emerging threats and act preventively
- Validate or correct your product roadmap
- Strengthen your internal and external credibility with solid data
Common Mistakes to Avoid
- Mixing different scopes (e.g., France vs. Europe)
- Basing the analysis solely on declarative data
- Ignoring weak signals or disruptive innovations
- Confusing market share leadership with actual profitability
Conclusion
The analysis of market share is much more than an Excel spreadsheet: it is a strategic tool that allows you to gain an advantage. When well executed, it provides a clear understanding of your competitive environment and directs your efforts towards growth.
In a world where market cycles are accelerating, those who master information always gain an advantage. Do not wait: make your analysis a decisive advantage.
FAQ
How to Calculate Market Share?
Market Share = (Company Sales / Total Market Sales) x 100
Why is it important to analyze market share?
It allows you to evaluate your competitiveness, detect growth opportunities, and intelligently direct your resources.
What tools should be used to analyze market share?
Excel, Power BI, Semrush, InnovFast, or SimilarWeb depending on your maturity and needs.
What is the difference between market share by value and by volume?
Market share by volume is based on quantities sold, market share by value on revenue generated.
How often should market share be analyzed?
Quarterly in dynamic markets, every 6 to 12 months in more stable markets.
