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Math Help - % share problem

  1. #1
    mmouse
    Guest

    % share problem

    Hi All,

    I am trying to workout the the formula to show what % share of the total market you would have, if your % growth is different to the market % growth.

    Example

    You currently have 4% of the market.
    The market grows by 10%, but you only grow by 8%.
    What is your new market share?

    Is it able to design a formula where you can plug in the market growth and your growth and it the result is your new market share %?

    Many thanks
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  2. #2
    MHF Contributor
    Joined
    Apr 2005
    Posts
    1,631
    Let us say the value of the market now is M.
    You have 4% of M. That means you have (0.04)M.

    The M grows by 10%. So the new market is (1.10)M.
    But your share only grow by 8%. So your new share is (1.08)(0.04M) = (0.0432)M

    What is your new market share?
    New market = (1.10)M.
    Your new share = (0.0432)M.
    What percentage of (1.10)M is your (0.0432)M?
    It is
    (0.0432M / 1.10M)(100%)
    = (0.0432 / 1.10)(100%)
    = (0.03927)(100%)
    = 3.927 %

    Your share of the new market is 3.927 percent only.

    ----------
    A formula?

    Let A = your old share, in decimals
    And B = the growth of the market, in decimals
    And C = your share's growth, in decimals
    And D = your new share, in decimals

    D = (1+C)*A / (1+B)

    D*(100%) = your new share in percent.

    Try that on your question above.
    A = 0.04
    B = 0.10
    C = 0.08
    D = (1+0.08)(0.04) / (1 +0.10) = (1.08*0.04) / (1.10) = 0.03927
    In %, D = 0.03927 *100% = 3.927 %
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