Why would US market be better from growth perspective than Indonesia

Question

Hi,

Based on 1% and 11% market shares respectively for indonesia and USA (on top of 80% and 20% revenue share across both geographies), wouldn't capturing extra 2-3 % market share in Indonesia, move the needle a lot more on the overall growth rate ? seems like we would have to increase the market share by double digits in the USA to make it 5% growth rate.

Can anybody provide with a detailed rationale (quantitatively , qualitatively) as to why USA is a better market to pick ?

Answer 1

hi!

Great question—and your logic makes sense at first glance! But here’s why the US might still be better for growth, even if Indonesia has more share headroom:

Quantitative
Yes, Indonesia has low share (1%) and high market share headroom, but only 20% of total revenue comes from there. So even a big share gain (say +3%) moves the total needle less.

Let’s do a quick calc:

Say total revenue is $100M
$80M from US (11% share), $20M from Indonesia (1% share)
If you grow share by +2% in Indonesia (1% to 3%), and the market size is constant, revenue gain = 2% of total Indo market = small lift on $20M
But even +1% gain in the US means +1% of a much bigger market = bigger absolute growth impact on the $80M base

Qualitative

US market is likely more mature, with stronger infrastructure, premium pricing, and better margins
Sales cycles may be more predictable, and costs per acquisition lower due to scale
Indonesia could have structural barriers: regulatory, fragmented customer base, limited pricing power, slower ramp

So yes—Indonesia = higher growth %, but US = higher growth in dollars, which is often what matters most to execs.

Hope that helps!

Best,
Alessa

Answer 2

Hi there,

I see Alessa has already provided a great answer below.

If you're casing at the moment, you might also find this guide useful:

Cheatsheet: The Must-Know Consulting Terms for Interviews

Best,
Cristian