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Mihaela

am 13. Juli 2023

Global

Frage zu

Conclusion

Hey everyone,

I believe the conclusion answer given is a bit missleading - to me it looks like we are comparing the 33% of OUR market share that we can afford to loose with the 2.85% of the TOTAL market share that the new competitor can take from us. Shouldnt we take the 33% of the 13% total share we have = 4.29% which is then the percantage of the total share we can afford to loose before having to reduce the prices woth 20%? And then compare it with the 2.85%?

The conclusion is the same - we do not reduce the price, but I think it is misleading to state 33% and 2.85%. Did I miss something?

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Ian

Coach

am 13. Juli 2023

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi Mihaela,

Nice catch!

You're right here.

3% OF of total market share is 3%/13% of ours. Tricky wording, but I agree with you.

Cristian

Coach

am 14. Juli 2023

#1 Rated & Awarded McKinsey Coach | Top MBB Coach | Verifiable success rates

You're right, Mihaela! Take these cases with a pitch of salt - don't just assume that the answers are always 100% correct. The expectation is that they are directionally correct and they provide a decent interpretation of the case.

Best,
Cristian