What is breakeven market share?

Breakeven market share refers to the minimum percentage of the market that a company needs to capture in order to cover its costs and achieve profitability. It is calculated by determining fixed and variable costs and comparing them to projected revenues at various market share levels. Achieving this market share is crucial for new entrants or businesses launching new products to ensure sustainability and growth. Understanding breakeven market share helps businesses set realistic sales targets and make informed strategic decisions.