Strategy
Relative market share
Your market share divided by your largest competitor’s share. If you lead the market, use the largest player other than yourself.
Simple example
30% ÷ 20% = 1.5. You are 1.5 times the size of the competitor; this does not mean 1.5% market share. Relative share = Your market share ÷ Your largest competitor’s market share. Sales can also be divided directly when their scope matches.
Why does it matter?
It indicates competitive position in the BCG Matrix. It may suggest cash generation potential; it does not directly measure cash inflow.