First, conduct market research to analyze how many customers there are in a product or service project, that is, how many customers need this product and how many competitors there are in this product. How much market share can be achieved by sampling and spot checking again.

there are three basic methods to measure market share: total market share, target market share and relative market share.

1. Overall market share

Overall market share refers to the proportion of sales volume (amount) of an enterprise in the whole industry. For example, if the sales of an enterprise is 5 million and the sales of the whole industry is 51 billion, then its market share is 511/5111111=1.11%.

2. Target market share

refers to the proportion of sales volume (amount) of an enterprise in its target market, that is, the market it serves. For example, if the sales of a catering enterprise is 1 million and the sales of the catering service market is 11 billion, its market share =111/1111111=1.11%.

3. Relative market share

Generally speaking, the calculation of relative market share is more meaningful. There are three competitors and the biggest competitor in the relative market share. Three competitors refer to the ratio of the sales volume of an enterprise to the total sales volume of the three largest competitors in the market. For example, the market share of an enterprise is 21%, and the market shares of its three biggest competitors are 11%, 11% and 15% respectively, then the relative market share of the enterprise is 31%÷(11%+11%+15%)=57.14%.

Extended information:

Generally speaking, in the following two cases, high market share means high profits.

1. The unit cost decreases with the increase of market share. This is because the factories run by market leaders are larger and enjoy the scale of cost, and the cost experience curve drops rapidly, so the unit cost drops.

2. The company provides high-quality and high-priced products, and the price increase exceeds the extra cost brought by high quality. Improving the product quality will not increase the company's cost, because the company will also reduce the consumption of waste and after-sales service, and if its characteristics are very suitable for consumers' needs, they would rather spend more than the cost.