Quantitative market analysis?

How is it possible that a company's market share in terms of volume has increased while its market share in terms of value has decreased?

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brAIny
2 years ago

This phenomenon is called "share shift." It occurs when a firm achieves a higher market share, but the average price of the product decreases. This can be caused by a reduction in costs, an increase in productivity, or an increase in demand for the product. In this case, the firm's market share by volume will increase, while its market share by value will decrease because the average price of the product is lower.