Market Share Analysis: a Strategic Lever to Dominate your Sector
Introduction: why is Market Share Analysis Vital for your Business?
In a constantly evolving economic environment, understanding your position relative to the competition is a condition for survival. Market share analysis is not merely a financial indicator; it is a strategic compass.
Whether you are a tech startup, an industrial SME, or an international group, you need to know:
- Who truly dominates your market?
- Which segments are growth drivers?
- Where are your opportunities for growth?
What you don’t measure, you can’t improve. And market share analysis is one of the most powerful tools to guide your marketing, sales, and innovation decisions.
1. What is Market Share? Definition and Types
Simple Definition:
Market share corresponds to a company’s weight in its market, expressed as a percentage of total revenue or sales volume.
Classic Formula:
(Company Revenue / Total Market Revenue) x 100
The 3 Types of Market Share You should Know:
- Absolute Market Share: your position relative to all players.
- Relative Market Share: your share compared to that of the leader or your direct competitor.
- Volume vs. Value Market Share:
- Volume = number of units sold
- Value = revenue generated
📌 Example: A discount brand may have a higher volume market share but a lower value market share than a premium competitor.
2. Why Continuously Monitor your Market Share?
Market share analysis is not a one-time exercise. It is a dynamic monitoring process that allows you to:
✅ Detect a gain or loss of influence against a competitor
✅ Understand the evolution of customer preferences
✅ Identify underexploited geographical areas or segments
✅ React quickly to a change in context: launch of a new competing product, price variation, sectoral crisis…
💡 The most common mistake? Relying solely on your revenue without considering the overall market.
3. How to Collect Data for Market Share Analysis?
There are several sources to estimate your market share:
🔍 Internal Sources
- CRM Data (sales, active customers)
- Accounting Data (revenue, margins)
- Sales Feedback
🌐 External Sources
- Sectoral Studies (Xerfi, Statista, Gartner, IbisWorld…)
- Professional Associations
- Public Data (INSEE, Eurostat, BPI)
- Distributor Panels (Nielsen, Kantar, GfK)
- Competitive Intelligence Tools (SimilarWeb, SEMrush, BuiltWith for digital)
🎯 SEO Tip: For digital businesses, don’t forget to evaluate your online visibility share. A competitor can dominate SERPs without dominating revenue.
4. The 5 most Used Market Share Analysis Methods
1. Competitive Benchmarking
Compare the market shares of several companies in the sector to assess their competitiveness.
2. BCG Matrix
Cross-references relative market share and market growth rate to prioritize marketing investments.
3. Enhanced SWOT Analysis
A market share-based SWOT allows for the integration of competitive pressure as a strategic factor.
4. Perceptual Mapping
Associates market share data with brand perception (image, positioning, quality).
5. Geographic Analysis
Visualize market shares by region or catchment area to refine sales targeting.
5. Case Study: how an SME Doubled its Market Share in 18 Months
Context: A French agri-food SME targeting organic stores.
Initial Problem: Good organic growth but stagnation of regional market shares.
Approach:
- Distribution audit: low presence in 30% of targeted points of sale
- Competitive study: a new player was rapidly gaining ground with lower prices
- Joint analysis of Revenue / Market Share → realization of a lack of differentiation
Actions:
- Product range repositioning: highlighting local origin
- Local campaigns + partnership with organic influencers
- Deployment of sales representatives in underserved areas
Result:
- +24% distribution points
- Market share doubled in two key regions
- 7% increase in average pricing
6. How to Use your Market Share as a Strategic Decision-Making Tool?
🎯 Marketing:
- Reallocate budgets to segments where market share is low but potential is high
- Prioritize brand awareness initiatives in markets dominated by competitors
📦 Product Development:
- Launch product lines where you are absent or too weak
- Discontinue over-segmented references without potential
🛠️ Sales Force:
- Reallocate resources to areas with low coverage
- Use market share gaps as a performance indicator
📈 Overall Strategy:
- Set realistic growth objectives: “+2 market share points in 12 months”
- Identify merger and acquisition or partnership opportunities
7. Mistakes to Avoid in Market Share Analysis
❌ Relying solely on internal estimates
❌ Confusing brand awareness with commercial dominance
❌ Neglecting relative market share (vs. the #1)
❌ Ignoring new entrants or indirect players (platforms, AI, D2C…)
🎯 Market share analysis must be multi-level, multi-source, and dynamic.
Conclusion: Measure, Compare, Act
Market share analysis is much more than a marketing indicator. It is a strategic revealer. It tells you where you are strong, where you are weak, and where you have potential.
Whether you are growing or repositioning, this indicator should be part of your management dashboard.
Because dominating a market is not improvised. It is measured, understood… and built.
