Market share refers to the percentage of an industry or market's total sales that is earned by a particular company over a specified time period. It is a key indicator of a company's competitiveness and performance within its sector. For example, if a company sells $1 million worth of products in a market that totals $10 million, its market share would be 10%. Understanding market share helps businesses identify their position relative to competitors. Companies often aim to increase their market share to enhance profitability and influence. Factors affecting market share include pricing, product quality, and marketing strategies, all of which can impact consumer choices and sales.