Market Share

Abstract

Most accountants know that profit can be generated if the costs are lower than the revenue. That is a fact but, as we all know, it does not happen just like that: one has to make it happen. The market share of a company plays a vital role in achieving this objective. The market share, in essence, determines the profit that can be made by a company. The reason is obvious. As in any sphere - the business sphere is no exception - the powerful dominates. Power, in the business sense, is often associated with the market share one has over one’s competitors. The higher the market share, the more one can dominate in terms of price, cost and profit.

‘It is true that our preoccupations should extend beyond the present, and it is right to omit to do what may benefit our contemporaries, when the intention is to benefit posterity still more.’

DESCARTES