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 ?
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Why would US market be better from growth perspective than Indonesia
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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
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:
Best,
Cristian
