expert
Experte mit der besten Antwort

Vlad

97% Empfehlungsrate

388 Meetings

7.371 Q&A Upvotes

299 USD / Coaching

3

Market size vs Market trend. Which one is more important?

During imterview, I was asked by the interviewer to have an opinion on "whether the market size is more important or the market trend?" Please share your point of view and will be gald to discuss with anyone who's interested in this question as well :)

During imterview, I was asked by the interviewer to have an opinion on "whether the market size is more important or the market trend?" Please share your point of view and will be gald to discuss with anyone who's interested in this question as well :)

3 Antworten

  • Upvotes
  • Datum aufsteigend
  • Datum absteigend
Beste Antwort
Coaching mit Vlad vereinbaren

97% Empfehlungsrate

388 Meetings

7.371 Q&A Upvotes

299 USD / Coaching

Hi,

Several points here:

First of all size / trend is the most common trap in the cases. Candidates often forget asking about the size / trend and get the wrong conclusion. Always ask for:

  • Size of the market and its growth rate
  • Size of the segments and their growth rates
  • Shares of the competitors and their growth rate
  • Revenue of the company and the growth rate

It's absolutely critical to discipline yourself to get the information about the size and the growth together!

Answering your specific question - both are important but growth may be more important in immature industries (e.g. the start of the telecom market when penetration was low, or ridesharing market when Uber just launched.) In other words, growth may be more important when you are creating the new market / submarket

Best

Hi,

Several points here:

First of all size / trend is the most common trap in the cases. Candidates often forget asking about the size / trend and get the wrong conclusion. Always ask for:

  • Size of the market and its growth rate
  • Size of the segments and their growth rates
  • Shares of the competitors and their growth rate
  • Revenue of the company and the growth rate

It's absolutely critical to discipline yourself to get the information about the size and the growth together!

Answering your specific question - both are important but growth may be more important in immature industries (e.g. the start of the telecom market when penetration was low, or ridesharing market when Uber just launched.) In other words, growth may be more important when you are creating the new market / submarket

Best

Hey anonymous,

My opinion is that on most of the cases it's really difficult to have an interesting and insightful view of the market without looking on both (any of them isolated seem quite weak to me!)... actually the only few exceptions I can think of is very mature industries (where market size might be more important if you already believe you have a good instinct about trend) or very new ones (where market size is still very reduced, but what actually drives future perspectives are the trends)

Anyway, I would be also quite interested in hearing others' perspectives.. and especially in knowing from which company did you get such (weird?) question?

Best

Bruno

Hey anonymous,

My opinion is that on most of the cases it's really difficult to have an interesting and insightful view of the market without looking on both (any of them isolated seem quite weak to me!)... actually the only few exceptions I can think of is very mature industries (where market size might be more important if you already believe you have a good instinct about trend) or very new ones (where market size is still very reduced, but what actually drives future perspectives are the trends)

Anyway, I would be also quite interested in hearing others' perspectives.. and especially in knowing from which company did you get such (weird?) question?

Best

Bruno

I agree with the above. I think if I was to get the question and they directed me to pick only 1- I would highlight market growth trends as being more important.

Nobody wants to get on a sinking ship; a market that is growing has endless possibilities and I would think it would be unlikely for a consulting firm to advise a client to enter for example a shrinking market. They would more likely advise the client to shift towards a new market that has more promising signs eg Uber aren’t try to build and sell traditional cars, but rather enter the autonomous car market.

So many variables makes this difficult. I’m sure the interviewer was just trying to stress test you as there isn’t one correct answer IMO and more just to hear you think and communicate variables.

Cheers!

I agree with the above. I think if I was to get the question and they directed me to pick only 1- I would highlight market growth trends as being more important.

Nobody wants to get on a sinking ship; a market that is growing has endless possibilities and I would think it would be unlikely for a consulting firm to advise a client to enter for example a shrinking market. They would more likely advise the client to shift towards a new market that has more promising signs eg Uber aren’t try to build and sell traditional cars, but rather enter the autonomous car market.

So many variables makes this difficult. I’m sure the interviewer was just trying to stress test you as there isn’t one correct answer IMO and more just to hear you think and communicate variables.

Cheers!

Verwandte BootCamp-Artikel

Getting Up to Speed

In order to repeatedly demonstrate prerequisite skills under the pressure of a real case interview, you need to learn the basics and practice cases.

1 Q&A

Interviewer-Led vs Candidate-Led cases

Case Interviews can be led by the candidate or by the interviewer: In Candidate-led cases the main challenge is the structure. In Interviewer-led cases the main challenge is to adapt quickly

Verwandte Cases

Bain Case: Asiatische Schmierstoffe

128,4 Tsd. mal gelöst
Bain Case: Asiatische Schmierstoffe Der in seiner Heimatregion äußerst erfolgreiche asiatische Premiumhersteller von Schmierstoffen, LubricantsCo, möchte seinen Umsatz und Gewinn weiter steigern. Die Produktpalette erstreckt sich von Schmierstoffen im automobilen Umfeld (z. B. Motor- und Getriebeöl) bis zu Industrieanwendungen (z. B. Fette, Hochleistungsöle). Da nach ersten Untersuchungen weitere Wachstumspotenziale im asiatischen Kernmarkt eher limitiert sind, will LubricantsCo Optionen zur Internationalisierung im Pkw-Geschäft untersuchen – auch außerhalb des aktuell vorrangig bedienten Premiumsegments. Ihre Beratung wurde daher beauftragt, eine Markteintrittsstrategie für den europäischen Markt auszuarbeiten.
4.6 5 28335
| Bewertung: (4.6 / 5.0)

Der in seiner Heimatregion äußerst erfolgreiche asiatische Premiumhersteller von Schmierstoffen, LubricantsCo, möchte seinen Umsatz und Gewinn weiter steigern. Die Produktpalette erstreckt sich von Schmierstoffen im automobilen Umfeld (z. B. Motor- und Getriebeöl) bis zu Industrieanwendungen (z. B. ... Ganzen Case öffnen

Bain Case: Altes Weingut

54,1 Tsd. mal gelöst
Bain Case: Altes Weingut Sie erben von Ihrem Großvater ein Weingut, die Old Winery, welche sich seit fünf Generationen in Familienbesitz befindet und bis ins 16. Jahrhundert datiert werden kann. Auf den elf Hektar der Old Winery werden konventionell, d.h. nicht biologisch betrieben und zertifiziert, je zur Hälfte weiße und rote Trauben angebaut, wobei der Rebbestand bezüglich Alter und Pflege in gutem Zustand ist. Insgesamt werden nur ¼ der Ernte selbst zu Wein gekeltert; der Rest wird weiterverkauft. Ihr Großvater, der selbst am Image des Weinguts nichts verändern wollte, überließ die Bewirtschaftung und Verwaltung einem jungen dynamischen Winzer. Auf Grund des wenig bekannten Images des Weinguts ist die aktuelle Nachfrage nach dem eigenproduzierten Wein nicht besonders hoch. Da Sie sich mit Weinanbau wenig auskennen, wollen Sie das Weingut nicht operativ leiten, aber finden die Idee spannend, ein Weingut zu besitzen. Ihr Plan ist es jedoch, dem Weingut einen frischen Wind einzuhauchen.
4.4 5 1423
| Bewertung: (4.4 / 5.0)

Sie erben von Ihrem Großvater ein Weingut, die Old Winery, welche sich seit fünf Generationen in Familienbesitz befindet und bis ins 16. Jahrhundert datiert werden kann. Auf den elf Hektar der Old Winery werden konventionell, d.h. nicht biologisch betrieben und zertifiziert, je zur Hälfte weiße und ... Ganzen Case öffnen

McKinsey Questions

36,7 Tsd. mal gelöst
McKinsey Questions Tell me of a situation where you had an opinion and no one seemed to agree with you. What was your goal when you decided to join university / work / clubs / a sports team? Did you have a goal that you were not able to reach? What did you do? What do you want to be remembered for and how are you achieving it? What is your typical way of dealing with conflict?
4.5 5 850
| Bewertung: (4.5 / 5.0) |
Schwierigkeit: Fortgeschritten | Stil: Fit-Interview | Themen: Personal Fit

Tell me of a situation where you had an opinion and no one seemed to agree with you. What was your goal when you decided to join university / work / clubs / a sports team? Did you have a goal that you were not able to reach? What did you do? What do you want to be remembered for and how are you ... Ganzen Case öffnen

BCG Questions

25,2 Tsd. mal gelöst
BCG Questions What arouses your interest when you are working / studying / doing another activity (from the CV)? Tell me of a time where you had no idea what you were doing. When did you use an uncommon approach to do something? Have you ever had responsibility for other people? Tell me of a situation where you were not the official leader.
4.5 5 206
| Bewertung: (4.5 / 5.0) |
Schwierigkeit: Fortgeschritten | Stil: Fit-Interview | Themen: Personal Fit

What arouses your interest when you are working / studying / doing another activity (from the CV)? Tell me of a time where you had no idea what you were doing. When did you use an uncommon approach to do something? Have you ever had responsibility for other people? Tell me of a situation where ... Ganzen Case öffnen

Bain Questions

23,7 Tsd. mal gelöst
Bain Questions Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership skills.
4.6 5 289
| Bewertung: (4.6 / 5.0) |
Schwierigkeit: Fortgeschritten | Stil: Fit-Interview | Themen: Personal Fit

Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership skills ... Ganzen Case öffnen