Market share plays a central role in a number of portfolio
planning models. This article presents an exposition of the
underlying relationship between market share, market size,
market growth rate, product sales volume and product sales
growth rate. Three constructs-the market share multiplier,
the physical volume multiplier, and the dollar volume multi
plier-which aid in the strategic analysis of the product
portfolio are proposed. The linkages between inter-related
growth constructs such as the volumetric and dollar sales
growth rate, and the nominal and real dollar sales growth
rate are discussed. Certain generalizations regarding market
share and its sensitivity to various environmental conditions
are highlighted.
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