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Using pie charts and words, how market share could be shrinking but revenues could be growing?

Using pie charts and words, how market share could be shrinking but revenues could be growing?

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Answer #1

In general, revenue and market share shows positive relationship because as the market share increases, revenue will also increase. But sometimes, market share could be shrinking and revenue could be growing (negative relationship). This happens when the niche segment companies or specialized product companies.They work only on specialized products where they have huge profit margin but could not increase market share.

As shown in the figure, Niche segment holds a very small market share but Niche market as a whole earns huge revenue because they have specialized products.

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