A company's market share refers to the percentage of a specified market it controls. For example, if a company sells one out of every four computers, it has a 25 percent market share in computers. The relative market share measures the company's market share compared with the percentage of the market it does not control. According to Market-Driven Management, relative market shares of 33 percent or larger are considered strong.
Subtract the company's market share from 100 to find the percentage of the market the company does not control. For example, if the company controls 25 percent of the market, subtract 25 from 100 to get 75 percent of the market the company does not control.
Divide the company's market share by the percentage of the market it does not control. For this example, divide 25 percent by 75 percent to get 0.3333.
Multiply the result by 100 to find the company's relative market share expressed as a percentage. In this example, multiply 0.3333 by 100 to find the company's relative share equals 33.33 percent.
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