What is market share?

Market share refers to the percentage of an entire industry's total sales that is captured by a specific company. It provides insight into a company's competitive position within its industry; a larger market share can indicate that a company is a leader in its field, while a smaller market share might suggest it is a less significant player. Understanding market share is important for evaluating how well a company is performing compared to its competitors in terms of sales volume relative to the entire market.

The other options do not accurately define market share. Total sales of a company in a year could relate to revenue but does not reflect its share relative to the industry. The measure of a company's growth rate focuses on its performance over time rather than its position in relation to others. Overall quality of products offered pertains to product standards and consumer perception rather than sales metrics.