Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

expert

Henning

100% Recommendation Rate

177 Meetings

USD 189 / Coaching

5

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:

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:

(edited)

• Date ascending
• Date descending

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

• for Player A, it is it's own market share, devided by the share of Player E,
• for Player E it is it's own share, devided by the share of Player A

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!

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

• for Player A, it is it's own market share, devided by the share of Player E,
• for Player E it is it's own share, devided by the share of Player A

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

Thank you so much ! — Valeria on Jan 27, 2021

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

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

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,

Best,

Antonello

Hi,

Best,

Antonello

Hi there,

There appears to be duplicates of this question. That said, I agree with Henning. The answer is b

Hi there,

There appears to be duplicates of this question. That said, I agree with Henning. The answer is b

## Related case(s)

### Bain case: Asian lubricants producer

Solved 161.2k times
Bain case: Asian lubricants producer LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). According to preliminary examinations, further growth potentials in the Asian core market are rather limited. Thus, LubricantsCo would like to investigate options to internationalize in the passenger car business – also outside the premium segment which is given priority. Therefore, your consulting firm was instructed to elaborate a market entry strategy for the European market.
| Rating: (4.6 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

### Bain Case: Old Winery

Solved 69.9k times
Bain Case: Old Winery You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in a conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, the only ¼ of the harvest is made into wine by the winery itself; the rest is sold. Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand, the demand for the “Old Winery” wine is currently rather low. You do not intent to run the winery operatively, given your limited knowledge of winemaking, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in a conventional way, i.e. the ... Open whole case

### BCG Questions

Solved 27.4k times
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.
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit Interview | Topics: 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 ... Open whole case

### Bain Questions

Solved 25.0k times
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.
| Rating: (4.6 / 5.0) |
Difficulty: Intermediate | Style: Fit Interview | Topics: 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 ... Open whole case

### MBB Final Round Case - Smart Education

Solved 17.5k times
MBB Final Round Case - Smart Education Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US. The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvantaged areas. The client is considering starting operations for its services in the Chicago area. They hired us to understand if that makes sense. Due to the nonprofit regulation, SmartBridge should operate on its own in the market, without any partnership. How would you help our client?
| Rating: (4.6 / 5.0)

Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US. The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvant ... Open whole case