Why 11%

Hi Anonymous, 

I had a quick look at the case you mentioned. In my understanding it comes from this part: "A new factory in Spain that produces €100 m worth of products".

So we are now talking about potential revenues of this Spanish factory of 100m, which is 11% of the market since we have sick patients (660m) pregant women (225m). So 100m worth of products covers 11% of this market.

Hope that helps - if so, please give it a thumbs-up with the green upvote button below!

Robert

Hello,

The text says:

A new factory in Spain that produces €100 m worth of products per year would require €500 m investment. The same factory in China would cost €300 m.

From this part you can assume that you are now evaluating to build a new factory in China, investing 300M€, that produces 100M€ worth of products per year.

The total market in China is composed by:

• Pregnant women market: 225M€
• Sick patients market: 660M€

The total market is then 885M€. If you want to know what would be your coverage with the new plan, you have to calculate: Production/Total Market=100M€ / 885M€= 11.3%​

Hope it helps,
Luca

Hello!

It´s the % of the Spanish over the total: 

• Spanish: 100M worth
• Total: 885 = 660 (sick patients) + 225 (pregnant women) 

Hence, 100/885 = 0.11 = 11%

Hope it helps!

Cheers,

Clara

I confirm you have to divide it by 885

Best,
Antonello