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Conclusion

Wall Inc.
Neue Antwort am 14. Juli 2023
2 Antworten
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Mihaela fragte am 13. Juli 2023

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
Experte
Content Creator
antwortete am 13. Juli 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

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.

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Cristian
Experte
Content Creator
antwortete am 14. Juli 2023
#1 rated MBB & McKinsey Coach

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

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Ian

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