What is meant by 'market share'?

Market share refers specifically to the percentage of an industry or market's total sales that is attributed to a particular company. This metric is crucial for a business as it provides insight into the company's competitiveness within its sector. Understanding market share helps businesses assess their performance relative to competitors and gauge their presence in the market.

When a company has a higher market share, it often indicates stronger brand recognition, customer loyalty, and potentially higher pricing power. It can impact future profitability and growth strategies as well, allowing a company to leverage economies of scale and negotiate better terms with suppliers.

The other options, while related to the concept of market performance, do not capture the essence of market share. Total sales of a company reflect its revenue without indicating its relative position in the market. The sales volume of a single product focuses on a specific item rather than the overall market dynamics. The profit margin across all products concerns profitability rather than the share of sales within the market. Therefore, the percentage of the market controlled by a company is the correct definition of market share as it encapsulates the company's standing in its competitive landscape.