ELITE Prep | BCG Dubai Project Leader | Top Coach | 3hrs Case Mastery | 10y+ Consulting | Free Counselling
Some more context would have been helpful. However, basic definition of the items can be the following. I have taken the example of COVID vaccines to make it easier to understand.
Market Penetration: How much percentage of vaccine eligible people have actually got a vaccine. In other words - what is the ‘penetration’ of COVID vaccines in the market.
Market Share: How much percentage people got the Pfizer vaccine, Astra-Zeneca vaccine, J&J vaccine etc. In other words - what is the market share of each vaccine.
Want to learn more about this topic or join the discussion?
Sign up for free with PrepLounge and get access to first-hand insights from consulting experts, practical resources for your consulting interview preparation and an international community of candidates. Join the world’s largest case interview community.
Think of penetration rate as the “macro” or big picture view. Of all the people who could use the product (i.e. the TAM), it's the % of people actually using it. This represents missed (or potential) opportunity.
Market share is of that captured market (TAM times penetration rate), what % do you specifically get? All competitors' market share should add up to the current market size.
