Concentration Ratio

When you studied algebra, you learned a lot of ratios. And when you studied…you were “concentrating” on those ratios. Like...really, really concentrating. Because algebra is hard.

A concentration ratio is a market share calculation used to assess the extent to which a given market is “cornered” by a select few firms. Pick any industry: petroleum and gas, technology, athletic shoes, it doesn’t matter. We’re talking monopolies and oligopolies.

Nike is an athletic shoe giant. What most don't know is that, at one time, Nike owned Cole Haan, Hurley International, Bauer Hockey, Umbro, Starter, and Converse. All are sportswear, footwear, or athletic shoe companies. So, whether you knew it or not...you were buying Nike.

Their original catchphrase: Just Shmoop it.