How to Calculate Market Shares

Video Transcript

"So, you're wondering, how do we calculate market share? Market share is really just the share of business, that a particular company will have, in its particular market. For example, in oil, you might be looking at Chevron or BP, or any host of companies, and you would look at the percentage of that market, that they hold. How do you calculate it? You really don't need to, that information is available all over the internet, and you can probably actually find it from the company websites, or whether you call the company, look on the internet, or even talk with a local broker, it can tell you what percent of the market those companies have, or what percentage of the business that they do. As far as calculating it, it's really not something that you will get into calculating. It's a lot of work. The way you would calculate market share, is to go through, and look at every single company in a particular industry, and see how much business of that particular industry, do they own, so if you're looking at the oil companies, you would need to find every single oil company that's out there, and also find out how much of the oil business they own. How much do they do, compared to everybody else? so it's a lot of work. It's really not something that you might want to calculate, but that is how it's calculated, and if you need to know what that market share is, then you can certainly find the information, that's readily available."