Example of market share in business plan PDF
Thank you Nguyen for your question and asking me to respond.
Your question is a very good one and one that every entrepreneur needs to be aware of, and prepared to deal with.
In many ways selecting a business partner is like selecting a spouse.
Business partnerships are often illustrated as marriages, and there is a great deal of risk involved in choosing the right person to partner with, and something you donu2019t want to enter into blindly.
So it all comes down to u201cHow do you find the right person?u201d,This is where we put on our thinking caps, pull out some paper and pen, and start brainstorming.
In order to u201cfindu201d the right person we need to know what the u201cright personu201d looks like for our venture.
This will very from entrepreneur to entrepreneur due to the strengths and weakness of each.
This is also where having a written business plan is very helpful.
Knowing what you bring to your business venture, what you should be looking for in a business partner is someone whou2019s strengths compensate for your weaknesses, and who can bring into the business what you canu2019t.
Example, if you are weak in areas of marketing, you would want a partner who excels in marketing.
So you want someone who offsets your weaknesses, and who will help the business venture continue moving forward.
It is important to note that the purpose of your business venture is not to provide a job to family members and friends.
So unless you are prepared to fire your family member and friends, donu2019t hire them.
Keep in mind that as a startup you really donu2019t have the time or money to waist on employment issues that are not profitable.
So with written business plan, thinking cap, paper, and pen, write down what your u201cright personu201d looks like, and what that person brings to the business venture.
,Once you have Identified your u201cright person,u201d take that information to your mentor, coach, business advisor, and get their perspective on your idea of the u201cright person.
u201d Believe me, you will be glad you did provided you have wise mentorship.
Once you have established a clear picture of your u201cright personu201d start marketing/advertising for your u201cright personu201d and start interviewing until you find the person that meets your requirements.
,Now believe it or not that is the easy part.
what comes next is both hard and costly.
Before you marry your prospective new business partner, you are going to want to have a lawyer draw up a fair partnership contract detailing the partnership in order to protect your interests in your business venture as the founder, and your business.
So it would be in your best interest to educate yourself a bit so you will know what questions to ask your business Lawyer to properly protect your interests.
And donu2019t sign anything without first reading it thoroughly.
I know that sometimes it can be daunting, so I always have my Lawyer provide me with a PDF version of contracts and I have my PDF reader read me the entire contract.
It saves me time and money, and I am able to protect my interests by doing so.
,If I can be of further assistance please let me know.
Market share calculator
It is simply a brands share of a category.
So simply a brands total value sales divided by the total value sales of the category expressed as percentage.
However, market share can also be calculated using units to get unit market share or litres of the product to get volume market share.
Image below should make it clear:
How to estimate market share for new business
Both Nokia and Kodak (the latter, to a far greater degree) demonstrate the importance of pivoting and adapting to market needs.
During the speech where it was revealed that its handset business had been acquired by Microsoft, the then CEO of Nokia, Stephen Elop, ended with a line that moved a lot of folks.
u201cWe didnu2019t do anything wrong, but somehow, we lost.
u201d, he quipped and many people agreed.
After all, the decline of the u201conce upon a timeu201d global leader in the cellphone market in a span of less than a decade was a heartbreaking narrative.
Elop is not completely right.
An u201cunwillingness and/or inability to do somethingu201d is sometimes as disastrous as u201cnot doing anything wrongu201d.
,The firm was adamant about sticking to the captive Symbian OS, completely disregarding the increasing customer preference for iOS and Android.
,When the first iPhone was launched in 2007, Nokia promptly released its touted u201ciPhone killeru201d in the N97.
But people were not to be fooled.
The iOS / Android experience was far more superior to Symbian.
,I have been a long-time user of Nokia and Symbian, so Im familiar with most of its idiosyncrasies.
But I didnt realise how stuck in a time warp that OS had become until I took the N97 for a test drive.
,Newer operating systems such as the iPhone OS and Googles Android make Symbian seem almost prehistoric.
,And Nokia seems to have fallen into the same trap that RIM did when it introduced the BlackBerry Storm last year, assuming that all you need is the veneer of a touchscreen in order to tackle the iPhone.
But, instead of making it simpler, that just added to the complexity of the device.
,Nokia continued to fight the wrong battles, tweaking its hardware, coming up with new designs, moving to a complete touchscreen.
But they never thought, u201cHey, may be the users donu2019t like the software, eh?u201d.
Samsung and other ex-Symbianites abandoned ship for the open-source Android.
Developers found developing apps for iOS/Android far more lucrative.
But Nokia didnu2019t budge.
,Just a year into the first iPhone launch, Nokia started to concede its dominant position.
In 2008, it lost 6% market share.
,Nokia maintained its No 1 position with 42.
4% market share, but for the first time it recorded a decline in sales of 3% year-on-year.
Nokias market share dropped by 6.
3 percentage points to 42.
,Nokias decline in the smartphone market meant Symbians market share slumped from 63.
1% to 49.
8% -- the first time it has been below 50%.
Symbian was followed by RIM (15.
9%) and Mac OS X (12.
Microsofts Windows Mobile suffered a 3% sales decline, dropping it to fourth place with 11.
,2009 was an even tougher year, with Nokia making its first loss in more than a decade.
Its market share took another plunge.
They blamed capacity and slow industry growth.
Nokias overall market share actually fell in the third quarter, to 37.
7% from 38.
5% in the previous quarter and its share of the high-end smartphone market was also down.
Nokia had originally forecast that it would grow its market share this year but was forced to ditch that forecast in July.
,Like its strategic stiffness, there was inflexibility in the organization too.
,Nokiau2019s ultimate fall can be put down to internal politics.
In short, Nokia people weakened Nokia people and thus made the company increasingly vulnerable to competitive forces.
When fear permeated all levels, the lower rungs of the organisation turned inward to protect resources, themselves and their units, giving little away, fearing harm to their personal careers.
Top managers failed to motivate the middle managers with their heavy-handed approaches and they were in the dark with what was really going on.
,They had another shot with the gorgeous and powerful Lumia series now with the Windows OS, but that decision was likely borne out of Elopu2019s allegiance to Microsoft and no one told him any better.
The phone received largely positive reviews, but the software and the app ecosystem was still an issue.
The Google-Microsoft tiff ensured that Nokia didnu2019t get approval to build a Youtube app.
Or access to Google Maps.
Bing was never a serious rival to Google Search on mobile (or elsewhere).
What is the use of a shiny, new house when there is no reliable water supply?,Nokia failed because it refused to change.
Every choice they made was forced upon them by the market.
They utterly missed to see that software and user experience were becoming the predominant factors affecting consumer choices and not just more powerful cameras and sturdy headsets.
,u201c(Oh, how the mighty have fallen!u201d),Kodak on the other hand is a far more sinister tale.
,It is just one of plain ignorance but of malice.
,While Nokia refused to ride along the innovation wave, Kodak actually tried to suppress innovation.
,Despite having the first-mover advantage on the shift to digital photography, they believed that no one wanted it in fear that it would cannibalize their existing photo film business.
During the demo of the first digital camera developed by Kodaku2019s Steven Sasson, this was their reply.
,u201cThey were convinced that no one would ever want to look at their pictures on a television set,u201d he said.
u201cPrint had been with us for over 100 years, no one was complaining about prints, they were very inexpensive, and so why would anyone want to look at their picture on a television set?u201d,When Kodak executives asked when digital photography could compete, Mr.
Sassoon used Mooreu2019s Law, which predicts how fast digital technology advances.
He would need two million pixels to compete against 110 negative color film, so he estimated 15 to 20 years.
Kodak offered its first consumer cameras 18 years later.
,The first digital camera was patented in 1978.
It was called the electronic still camera.
Sasson was not allowed to publicly talk about it or show his prototype to anyone outside Kodak.
,But Kodaku2019s marketing department was not interested in it.
Sasson was told they could sell the camera, but wouldnu2019t u2014 because it would eat away at the companyu2019s film sales.
,Rather than celebrate the gigantic leap in the photography industry and reward the innovator, Kodak decided to keep mum, holding Mr.
Sasson to NDA and other legally binding requirements.
,But innovation is never at the mercy of a few individuals.
They probably pushed back the advent of digital cameras by an year or two.
But like the Avengeru2019s doomed attempt at stopping Thanos, it was just a temporary setback.
,And it did.
A little over three decades after that eventful presentation made by Mr.
Sasson, in 2012, the Eastman Kodak company filed for bankruptcy.
How to calculate market share percentage
Thereu2019s no formula.
Often when companies shut down they sell their customers to other companies in some fashion, so knowing about those deals could be useful.
Another scenario is companies shut down because they are losing sales, if you know which companies were winning those sales in the past, thatu2019s a clue as to who will get the additional sales.
,Another point is that few markets are completely commoditized.
If a company with, say, strong rural distribution, shuts down, you expect the lionu2019s share of its sales to go to other companies with strong rural distribution.
,So instead of a formula you need to gather as much information as you can and make a judgment.
Market share advantages and disadvantages
Hey,,With the Indian stock market going topsy-turvy even if there is a slight change at the global level, it is certainly worth considering whether you should invest your money in the trading market or seek for some reliable and safe options like bank FDs and real estate.
Investment in stock market is nothing short of a gamble, especially if you consider the volatile difficulties during the trading.
It is the place where people buy and sell shares and during the transaction, gain profit or even lose some amount depending upon the rate of that stock on a particular day.
,Advantages of Investing in Stock Market1.
Chances of Exceedingly Good Returns in Short TimenEven in the past people have gained exceedingly good returns on their stock market investments, and you always stand a good chance to earn huge profits when you decide upon stock market investing.
So, when you invest in stock market India, although you put yourself at a lot of risks, you are also in a position to earn good returns in a very short time.
Minority OwnershipnWell, it does sound like an exaggeration, but when you put your money in a reputed companyu2019s stocks, you become a part-owner of the company, irrespective of however smaller your share may be.
You can improve your standing in the market by sagaciously putting your money in different companies.
Moreover, you can exit whenever you want.
Right to VotenMinority ownership gives you the right to vote and voice your opinions at the corporate level.
,Disadvantages of Stock Market Investment1.
Volatile InvestmentsnInvestment in BSE is subjected to many risks since the market is volatile.
The shares of a company go up and come down so many times in just a single day.
These price fluctuations are unpredictable most of the times and the investor sometimes have to face severe loss due to such uncertainty.
Brokerage Commissions Kill Profit MarginnEvery time an investor buys or sells his shares, he has to pay some amount as a brokerage commission to the broker, which kills the profit margin.
Time ConsumingnInvestment in NSE is not as easy as investing in a lottery as you have to complete many formalities in the process and hence is time consuming.
,For more knowledge on Share market and investments you can refer to Sharekhanu2019s Website.