$?$What's Our Market Share

In this exercise, you simply need to work out the firm's unit market share. You have provided with lots of numbers to help you.

As we know, your $($unit$)$ market share is derived by the formula of: our sales$/$total market sales. It should be a simple exercise, shouldn't it$?$

Our Pizza Sales

Last week our chain for food stores sold $100,000$ pizzas in London.

We have been able to estimate that:

There were $1,000,000$ take$-$away pizzas sold in London overall across all pizza stores and chains

There were also a further $1,000,000$ frozen pizza sold in London

These figures increase to $5,000,000$ each if you consider the total UK market

However, there were $20,000,000$ fast food meals $($not just pizza$)$ sold in London last week, and $50,000,000$ throughout the UK

And if you consider all meals in UK last week $($including eating at home$)$ this number was $500,000,000$

Student Discussion Questions

What is the firm's market share for the firm in this case?

Was this a difficult number to determine? Why?

What other information would we need to help determine the firm's market share?

Why does it matter? In what ways can a firm benefit from its market share?