Hi,
This is a question from Bain sample case. I attach the question and relevant graphs below. Would appreciate if someone can give me hints on how to solve this problem. Thank you very much!
This is the link for the test if anyone finds it helpful:
https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Context.pdf
https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Question-fixed.pdf
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(edited)
Hi Valeria!
The correct answer is (b) ~6%.
Relative Market Share (RMS) is defined as a company's market share, devided by the market share of it's largest competitor, e.g
Therefore, you can express the total share of A, E, B in terms of the market share of Player A (let's call that MS(A)):
45% = 1 x MS(A) + 0.75 x MS(A) + 0.55 x MS(A)
==> MS(A) = 19.6%
Now you need to add the total share of the new company
MS(New) = 0.1 x MS(A) + 0.2 x MS(A), because RetailCo and Player D have a RMS of 0.1 and 0.2 respectively.
MS(New) = 0.3 x 19.6% = 6%
Hope this helps
Hi Valeria,
nice case, thanx for sharing! I'm sure a lot of candidates will find it helpful, too.
The correct answer is b, Henning is spot on.
Cheers,
GB
Hello!
Couldn´t have said it better than Henning, it´s b.
Keep in mind the big agility you need to make all this calculations, + the reasoning, in a limited time.
Cheers,
Clara
Hi,
B is the correct answer.
Best,
Antonello
Hi there,
There appears to be duplicates of this question. That said, I agree with Henning. The answer is b
Thank you so much !