What is ‘Market Share’?
‘Market share’ is the amount or proportion of the available market which is controlled by a single company, brand or organisation. The ‘market’ is the consumers who are in that service or product demographic, and companies compete to serve a share of that market. The gambling industry is a particularly competitive market, with lots of brands aiming for a piece of the overall market.
‘Market Share’ Explained
One of the most important figures for any business to understand is its own ‘market share’ compared with that of others. The gambling industry is a great example of a competitive market, with lots of different brands fighting for some of the potential profits. Because gambling is a very profitable industry with millions of potential consumers, there is lots of opportunities to enter the market – but there is also a lot of competition to take the biggest share of that market.
Market share is fairly easy to work out. If a group of 100 people want to gamble, 40 of them may choose to go with the best-known casino. This represents 40% of the market share. A further 25% might choose a lesser known casino that is land based, and 10% may go with an online option. This leaves a market share of 25% available for competition to fill – no-one is currently meeting the needs of 25% of the market, so there is a gap here which a new casino or an existing one could fill.
If all 100 people, or 100% of the available market, are being served by the available companies, this market is ‘saturated’. Casinos could still set up and if they have something unique, they might lure customers away from the competition – but there are no missed customers who are not currently using a service, so there is no available gap.