What does the term "market share" refer to in business?

Market share refers to the percentage of an industry's total sales that is controlled by a particular company. This metric is crucial for understanding a company's competitiveness within its industry. By calculating market share, businesses can assess their position relative to competitors, identify trends in consumer preferences, and evaluate the effectiveness of their marketing strategies. A higher market share often indicates a robust company presence and can correlate with brand loyalty, customer retention, and sales volume. Thus, this definition provides essential insight into a company's performance in the marketplace and its potential for growth or dominance. Other options, while related to business metrics, do not capture the essence of market share as effectively.