Hi,
This is a question from Bain sample case. I attach the question and relevant graphs below. The answer is 20% but i would appreciate if someone could give me hints on how to get to that. Thank you very much!%208.50.37%20p.m..png)
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Bain business case
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Hi,
Please find the step-by-step answer below. Please let me know if you have any question on that :)
Let’s name the players in the question by their first letter for simplicity:
Nice Travel: N
TravelCo: T
Flamingo: F
Super: S
Cool: C
Solution:
- As a fact: N+T+F+S+C= 100% (whole market)
- Divide all of them by N: 1+T/N+F/N+S/N+C/N=1/N
- From RMS formulas:
- T/N= 0.6
- F/N= 0.4
- S/N= 0.3
- C/N=0.2
- Implement the RMS values into the equation found in 2): 1+0.6+0.4+0.3+0.2=2.5=1/N
- 2.5xN=1 --> N=1/2.5=40%
- T/N=0.6 --> T=0.6*N=0.6*0.4=0.24=24%=~20%
Cagatay answered best! I would advise you to really think about the how of his answer, not just the answer itself. Important to learn how to break down these types of questions into digestible chunks.
Hi,
I tried & solved it in this method. Would like to know your opinion.
Total RMS - ( 1.7 + .6 + .4 + .3 + .2) = 3.2
Share of Travelco - .6 / 3.2
Which comes to = 18.75%
Answer choice can depend on the options available.
Hello Valeria, can you paste the options you are given?
This case reminds me a lot of some of the problems from GMAT, in which perhaps the key thing is not to try to calculate the exact solution but discard among the ones you are given.
It´s faster!
Cheers,
Clara
I can understand how it slowly led to RMS of Travel &Co(0.6) = Travel Co Market Share / Leaders market share (0.4)
Ultimately Travel Co Market Share got to 0.24 which is 24%.