Relative Market Share

Posted in Marketing and Strategy Terms, Total Reads: 1368

Definition: Relative Market Share

Relative Market Share compares a brand’s market share against a competitor’s market share. It gives a companies market share with respect to or relative to competitor's market share in the same market.

Relative Market Share (%) = 100 * Brand’s Market Share/ Largest competitor’s market share

Relative market share is different from absolute market share. Absolute market share is calculated by dividing the sales by the total sales in the market. Absolute market share shows how much potential the firm has for growth whereas the relative market share compares the firm with its competitors.

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