What does market share represent in the context of a company's product sales?

Market share represents the proportion of a company's sales within a particular industry or market compared to the total sales of all companies in that same market. It is expressed as a percentage and is calculated by taking the company's sales figures and dividing them by the total sales of the industry or market during a specified period. Understanding market share is crucial for assessing a company's competitive position, as a higher market share typically indicates a stronger presence and influence in the market. This metric helps businesses evaluate their performance relative to their competitors, strategize marketing efforts, and identify growth opportunities within the industry.