Hi!
I would appreciate if someone could help me with this question. (it's from a Bain sample case)
I've attached the chart (which has all the info needed) and the question.
The answer is 20% but I can not come up with that number! if anyone could give me a hint..
Thanks!!!
0.6/(0.2+0.3+0.4+0.5+0.6+1)
Here's my guess and I'm not sure if this actually makes sense. RMS = MS_company / MS_nice_travel for each company. Then RMS * MS_nice_travel = MS_company for each company. We can take MS_travel_co divided by the sum of RMS * MS_nice_travel for each company. You can organize like this:
MS_travel_co = (0.6 * MS_nice_travel) ÷ ((0.2 + 0.3 + 0.4 + 0.6 + 1) * MS_nice_travel)
This answer calculates to 0.24
The step by step approach is by referring to the ratios given.
Travelco/Nice = 0.6
Nice/Travelco = 1.7
Super/Nice = 0.3
Flamingo/Nice = 0.4
Cool/Nice = 0.2
Then, from the x axis, we know Nice + Super + Travelco + Flamingo + Cool = 150.
Just by doing math manipulations, we can obtain Nice = 60; then Travelco is 0.6 X Nice, which is 36. Finally, Travelco market share = 36/150 = 24%.
Btw, may I know where I can get the this full case? I looks interesting. :)
To the answers received so far: what's the number 1 you are adding in the denominator?
Express every individual company market share as a function of NiceTravel’s market share (using RMS), then setup an equation to solve for Nice Travels market share (40%). From there onwards, use the expression for Travel Co market share relative to Nice Travel to solve for Travel Co market share.
M.tc=0.6M.nt
Thus M.tc=0.6x40% = 24%
