Understanding Market Share

What is the primary purpose of understanding market share for a business?

• To calculate the total revenue of the sector

• To compare its performance with competitors

• To identify the number of competitors in the market

• To determine the total sales in the market

In the UK Supermarket sector example, which supermarket had the highest revenue in 2022?

• Sainsbury's

• Asda

• Morrisons

• Tesco

How is market share calculated for a company?

• By subtracting the company's revenue from the total market revenue

• By adding the company's revenue to the total market revenue

• By dividing the company's revenue by the total market revenue and multiplying by 100

• By dividing the total market revenue by the company's revenue

What might a company do if it finds its market share is lower than competitors?

• Reduce advertising expenses

• Invest in new product lines and advertising

• Decrease its geographic presence

• Maintain current strategies

If a company consistently has a higher market share than its competitors, what strategy might it continue to use?

• Change its business model

• Invest in new markets

• Continue with the same successful strategies

• Reduce its market presence