What is meant by market share?

Market share refers to the portion of a market that is controlled by a specific company or its products. It is typically expressed as a percentage of total sales within that market. Understanding market share is essential because it provides insight into how a company compares to its competitors in terms of sales volume or revenue. A higher market share indicates a stronger presence in the market, which can lead to greater negotiating power, more significant brand recognition, and increased profitability.

The other options do not correctly describe market share. The total sales revenue of an entire industry refers to the aggregate sales of all companies within the market, not a specific company's share. The growth rate of the market over time focuses on the overall expansion of the market rather than individual company performance. Overall brand reputation relates to customer perception, which, while important, does not quantify a company's actual sales relative to its competitors. Each of these alternative definitions highlights different aspects of market dynamics but fails to encapsulate the specific concept of market share.