A toy manufacturing company had total revenues of $20 million, and the toy manufacturing industry had total revenues of $200 million over one fiscal year. What is the market share of the toy manufacturing company? Discuss the effects of market share on a company’s stock performance?
Gain or Loss in market share can have significant impact on a company's stock performance depending upon different market scenarios and conditions.
Market share is the percentage of industry total sales that a company earns. Changes in market share have a significant impact in the industries when there is a low growth rate.
In contrast to those in industries where the growth rate is quite high there is a less impact on the company's stock performance.In these industries the companies can be still growth if they are still losing market share.For the companies in this section market share is more affected by sales margin and growth rather than other factors.
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