Market share
The portion of a total market held by one company, measured in volume (units) or value (revenue). A relative indicator of competitive position, it is measured against the full addressable market or a defined segment.
In practice
Market share is an outcome indicator, not a unit performance measure. A company can lose share while improving profitability by exiting unprofitable segments. The useful reading combines market share, gross margin and churn: together they reveal whether growth is healthy or artificially inflated. In a rapidly growing market, maintaining share while growing in absolute terms is already a meaningful achievement.