A-Level AQA Business Revision Unit 1(Part 12) : Market Size & Market Growth

Businesses need to know the market that they operate in. They need to be aware of it's size, growth or decline. This can help them decide whether to leave the market or add new products to the market.

Market Growth Formula:

Market Growth = Increase in sales in the market x 100

Original market size

Market Decline Formula:

Market Decline = Decrease in sales of the market x 100

Original market size

A business will also need to identify it's position in the market. Is it struggling? Is it the strongest? The way in which businesses check this is through measuring their market share

Market share - The percentage of the market the business has

Market Share Formula:

Market Share = Total sales in the market x 100

Original Market Size

A business with a market share of, or over 25% is classified as a Monopoly