Market Penetration of 85%?

Question

Why the US revenues is as follows:

addressable market x market penetration x StayPro market share x pricing =
16M customers x 85% x 30% x $250 = $1.02B

Shouldn't the market penetration for 2025 be 90%. What am I missing?

Answer 1

Hi there,

Yes, you are correct. Great job catching the error!

If you would like a more detailed discussion on how to best prepare for your upcoming pre-interview assessments and/or interviews, please don't hesitate to contact me directly.

Best,

Hagen

Answer 2

You are right. I've updated the year of the calculations from 2024 to 2025 without updating the numbers. I'll fix that in the case.

Thanks for letting me know!

Answer 3

Hey there,

This is a great case. Good job catching the error there

Furthermore, this is why it's important to detail your approach (as you've done) to be able to pick up anomalies, and this is what you'd do also in the actual case

All the best

Answer 4

Hi there, Market share loss is calculated by looking at the difference in a company's market share over a specific pe... (read entire answer)

Hi there, Market share loss is calculated by looking at the difference in a company's market share over a specific period. The basic formula is: Market Share Loss = Previous Mar... (read entire answer)