Market sizing, for case interviews vs working on an actual project

Hi there,

I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:

• First of all, it really depends on the individual approach of every candidate. While there might be some who do exceptionally well and solve the problem in a way that is very similar to how it would be done on an actual project, most do not.
• Still, in real life, market size estimations, especially for rather niche industries like those in private equity consulting, are way more complex and often not as directly solvable as other coaches have presented.
• However, please keep in mind that most major strategy consulting companies have not used standalone market size estimations for a long time. While this does not mean it never happens, this type of case study question may not be very meaningful for both the candidate and interviewer, as only a few skills are being tested.
• That being said, simpler market size estimations may still be a part of a case study, for instance when estimating the revenues of the client company is required.

If you would like a more detailed discussion on how to address your specific situation, please don't hesitate to contact me directly.

Best,

Hagen

Hi there,

How “typical” candidates do market sizing? Competely different to the real world (and why they often fail interviews)

How “optimal” candidates do market sizing? Very similar to an actual project. (and why they often pass market sizing in interviews)

Remember that the entire interview process is designed to mimic the real world. That's the entire point!

However, unfortunately most candidates just memorize stuff. They follow steps but they don't learn how to think and approach problems like a real consultant. Once they do, they drastically increase their chances of success.

Remember, market sizing is not about randomly picking numbers and buckets. There is a logical process to it!

Hi there,

complementing Allen - I would say the logic building blocks in real cases are similar vs interview 

e.g. I had to size the solar pv, energy efficiency market evolution at 5 years for specific residential and industrial segments 

We built a semi-sophisticated excel model but basically my team

1) estimated “smart”drivers and proxies for market size evolution based on reports, business sense, client knowledge, bcg knowledge

→ you will size most of the time obscure sub-segments of market where no deterministic data points are available 

2) triangulated / pressure-tested outcomes

in summary a more in depth exercise vs an interview but built on EXACTLY the same conceptual tools and reasoning (hence the relevance of asking mkt sizing questions during interview :)  )

As a general tip, you might as well start these questions with, “I know it depends, but…”

I have always been shocked how similar the “market sizing” process is to what one does during interviews.  Often applied when trying to estimate savings from different initiatives.  Identify the drivers, estimate the values, communicate. 

Sometimes you need to triangulate assumptions with other knowledgeable sources, but they're basically going to do the same thing also! 

Best,

Allen

Hi there!

Actually, the process is similar. 

What differs is how you go about validating the assumptions, i.e., going out and getting the actual data to plug in to your approach. 

You can either collect actual data and run analyses on it, or you could also interview experts and ask for their input. 

Best,
Cristian

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Hi there,

the main difference between a case interview and real life market sizing exercises 

(1) You have more time and data sources available to get better estimates

(2) You are able to test multiple approaches/structures to get to the market size

(3) You are better able to triangulate/reality check outcomes

What is very similar is the fact that a structured approach is used, as in case interviews.

Cheers

Andreas