[solved] Using relative market share to assess a business's competitive strength is analytically superior to straight percentage measures of market share because relative market share

is a reliable indicator of the extent to which a business unit enjoys strong product differentiation vis-a-vis rivals (signaled by a relative market share above 1.0) or suffers from weak product differentiation vis-a-vis rivals (signaled by a relative market share below 0.50).

is a better indicator of competitive strength than is a simple percentage measure of market share--for instance, a company with a 20% market share is in a much stronger competitive position if its largest rival has a market share of 10% (which means its relative market share is 2.0) than it is if its largest rival has a 30% market share (in which case the company's relative market share is only 0.67).

is a reliable indicator of the extent to which a business unit enjoys a strong brand image and reputation with buyers (signaled by a relative market share above 0.75) or a weak brand image and reputation with buyers (signaled by a relative market share below 0.30).

is a more reliable indicator of a business unit's revenue growth and profit potential.

is a reliable indicator of the extent to which a business unit enjoys competitive advantage (signaled by a relative market share above 1.0) or suffers from competitive disadvantage (signaled by a relative market share below 0.25).