Market Consolidation

Categories: M, SEO Glossary

Market Consolidation refers to the extent of website traffic concentration within a specific market, serving as a barometer for the level of competition among the entities involved. This concept is quantified using an adaptation of the Herfindahl-Hirschman Index, which calculates the distribution of market share across various competitors. A higher degree of market consolidation suggests that fewer players hold a larger proportion of the market, indicating a competitive landscape with dominant leaders, whereas lower consolidation points to a more fragmented market with numerous participants vying for shares.