08/11/2022
Market pe*******on is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market pe*******on can also be used in developing strategies employed to increase the market share of a particular product or service
Market pe*******on can be used to determine the size of the potential market. If the total market is large, new entrants to the industry might be encouraged that they can gain market share or a percentage of the total number of potential customers in the industry.
For example, if there are 300 million people in a country and 65 million of them own cell phones, the market pe*******on of cell phones would be approximately 22%. In theory, there are still 235 million more potential customers for cell phones, or 78% of the population remains untapped. The pe*******on numbers might indicate the potential for growth for cell phone makers.
In other words, market pe*******on can be used to assess an industry as a whole to determine the potential for companies within the industry to gain market share or grow their revenue through sales. Revisiting our example, the global cell phone market pe*******on is often used to estimate whether cell phone producers can meet their earnings and revenue estimates. If the market is considered saturated, it means that existing companies have the vast majority of the market share—leaving little room for new sales growth.
Market pe*******on can be used to determine the size of the potential market. If the total market is large, new entrants to the industry might be encouraged that they can gain market share or a percentage of the total number of potential customers in the industry.
