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Market share by percentage growth rate

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You are operating a business in a very competitive market. You are not yet the dominant player, but you have invested heavily in marketing and product development and it has paid off with a steady growth rate of 10%. You anticipate that this will continue into the foreseeable future and you are determined to improve your position in this market.

You have carefully defined and analyzed your market and have determined that you currently have 20% market share but the market is stable; that is, it isn't growing and you don't anticipate that it will grow in the future.

What percent of the market do you anticipate having three years from now, given the conditions outlined above?

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Solution Summary

Step-by-step application of a growth rate of 10% from an initial position of a 20% market share.

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You should plan on have 26.62% of the market.

Consider a small market of only 100 buyers. At this point, with 20% of the market you have 20 of the buyers since 20 is 20% of 100. In one ...

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