<p>Market share refers to the percentage of a market or industry that a particular company or product controls. It is calculated by dividing the company's sales by the total market sales, and then multiplying by 100 to get a percentage.</p>

<h2>How It Works</h2>
<p>To calculate market share, follow these steps:</p>
<ul>
  <li>Determine the total market size for the product or service in question.</li>
  <li>Measure the company's sales of that product or service within the same period.</li>
  <li>Divide the company's sales by the total market sales.</li>
  <li>Multiply the result by 100 to get the market share percentage.</li>
</ul>
<p>For example, if a company sells $100,000 worth of widgets in a market where $1,000,000 worth of widgets were sold in total, the company's market share would be (100,000 / 1,000,000) x 100 = 10%.</p>

<h2>Why It Matters</h2>
<p>Market share is a crucial metric for companies and investors alike. It provides insights into a company's competitive position and its potential for growth. A high market share indicates that a company is dominant in its industry, which can lead to economies of scale, pricing power, and stronger brand recognition. However, a high market share can also attract competitors and invite regulatory scrutiny. On the other hand, a low market share may signal that a company is struggling or that it operates in a highly competitive market. Understanding market share is essential for making informed investment decisions and for companies to strategize their growth plans.</p>