Market share in the context of "Audience measurement"

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⭐ Core Definition: Market share

Market share is the percentage of the total revenue or sales in a market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a 10 percent share in that market.

"Marketers need to be able to translate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. The latter will almost always be more difficult to achieve. Market share is closely monitored for signs of change in the competitive landscape, and it frequently drives strategic or tactical action." Additionally, market share is a key metric in understanding performance relative to the growth of the market as measurement of internal sales growth (or decline) only may be a result of similar growth or declines in the industry being measured.

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Market share in the context of CEO

A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization.

CEOs find roles in various organizations, including public and private corporations, nonprofit organizations, and even some government organizations (notably state-owned enterprises). The governor and CEO of a corporation or company typically reports to the board of directors and is charged with maximizing the value of the business, which may include maximizing the profitability, market share, revenue, or another financial metric. In the nonprofit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission, usually provided by legislation. CEOs are also frequently assigned the role of the main manager of the organization and the highest-ranking officer in the C-suite.

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Market share in the context of Control theory (sociology)

Control theory in sociology is the idea that two control systems—inner controls and outer controls—work against our tendencies to deviate. Control theory can either be classified as centralized or decentralized. Decentralized control is considered market control. Centralized control is considered bureaucratic control. Some types of control such as clan control are considered to be a mixture of both decentralized and centralized control.

Decentralized control or market control is typically maintained through factors such as price, competition, or market share. Centralized control such as bureaucratic control is typically maintained through administrative or hierarchical techniques such as creating standards or policies. An example of mixed control is clan control which has characteristics of both centralized and decentralized control. Mixed control or clan control is typically maintained by keeping a set of values and beliefs or norms and traditions.

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Market share in the context of Apple Safari

Safari is a web browser developed by Apple. It is built into several of Apple's operating systems, including macOS, iOS, iPadOS, and visionOS, and uses Apple's open-source browser engine WebKit, which was derived from KHTML.

Safari was introduced in an update to Mac OS X Jaguar in January 2003, and made the default web browser with the release of Mac OS X Panther that same year. It has been included with the iPhone since the first-generation iPhone in 2007. At that time, Safari was the fastest browser on the Mac. Between 2007 and 2012, Apple maintained a Windows version, but abandoned it due to low market share. In 2010, Safari 5 introduced a reader mode, extensions, and developer tools. Safari 11, released in 2017, added Intelligent Tracking Prevention, which uses artificial intelligence to block web tracking. Safari 13 added support for Apple Pay, and authentication with FIDO2 security keys. Its user interface was redesigned in Safari 15, Safari 18, and Safari 26.

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Market share in the context of Diffusion of innovations

Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread. The theory was popularized by Everett Rogers in his book Diffusion of Innovations, first published in 1962. Rogers argues that diffusion is the process by which an innovation is communicated through certain channels over time among the participants in a social system. The origins of the diffusion of innovations theory are varied and span multiple disciplines.

Rogers proposes that five main elements influence the spread of a new idea: the innovation itself, adopters, communication channels, time, and a social system. This process relies heavily on social capital. The innovation must be widely adopted in order to self-sustain. Within the rate of adoption, there is a point at which an innovation reaches critical mass. In 1989, management consultants working at the consulting firm Regis McKenna, Inc. theorized that this point lies at the boundary between the early adopters and the early majority. This gap between niche appeal and mass (self-sustained) adoption was originally labeled "the marketing chasm".

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Market share in the context of Web browser

A web browser, often shortened to browser, is an application for accessing websites. When a user requests a web page from a particular website, the browser retrieves its files from a web server and then displays the page on the user's screen. Browsers can also display content stored locally on the user's device.

Browsers are used on a range of devices, including desktops, laptops, tablets, smartphones, smartwatches, smart televisions and consoles. As of 2024, the most used browsers worldwide are Google Chrome (~66% market share), Safari (~16%), Edge (~6%), Firefox (~3%), Samsung Internet (~2%), and Opera (~2%). As of 2023, an estimated 5.4 billion people had used a browser.

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Market share in the context of Reputational risk

Reputational damage is the loss to financial capital, social capital and/or market share resulting from damage to an organization's reputation. This is often measured in lost revenue, increased operating, capital or regulatory costs, or destruction of shareholder value. Ethics violations, safety issues, security issues, a lack of sustainability, poor quality, and lack of or unethical innovation can all cause reputational damage if they become known.

Reputational damage can result from an adverse or potentially criminal event, regardless of whether the company is directly responsible for said event (as was the case of the Chicago Tylenol murders in 1982). Extreme cases may lead to large financial losses or bankruptcy, as per the case of Arthur Andersen.

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Market share in the context of Hidden champions

Hidden champions are relatively small but highly successful companies that excel in their niche but are not well-known to the general public. The term was coined by Hermann Simon. He first used the term in 1990 as a title of a publication in a scientific German management journal, describing the small, highly specialized world-market leaders in Germany. According to his definition, a company must meet three criteria to be considered a hidden champion:

  • Number one, two, or three in the global market, or number one on the company's continent, determined by market share
  • Revenue below $5 billion
  • Low level of public awareness
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