Bain Question - Business Case Sample

Anonymous A asked on Aug 13, 2018

Hi!

I would appreciate if someone could help me with this question. (it's from a Bain sample case)

I've attached the chart (which has all the info needed) and the question.

The answer is 20% but I can not come up with that number! if anyone could give me a hint..

Thanks!!!

Bain Sample Case Solution

(edited)

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Anonymous B replied on Aug 13, 2018

0.6/(0.2+0.3+0.4+0.5+0.6+1)

Is it a rounded number? Why? I got 24% by calculating the full formulas given in intro. — LIZ on Aug 14, 2018

use The formula above, the answer will be 0.2 — Michael on Aug 14, 2018 (edited)

Jeremy replied on Aug 14, 2018

Here's my guess and I'm not sure if this actually makes sense. RMS = MS_company / MS_nice_travel for each company. Then RMS * MS_nice_travel = MS_company for each company. We can take MS_travel_co divided by the sum of RMS * MS_nice_travel for each company. You can organize like this:

MS_travel_co = (0.6 * MS_nice_travel) ÷ ((0.2 + 0.3 + 0.4 + 0.6 + 1) * MS_nice_travel)

This answer calculates to 0.24

Yeah I think there’s something wrong with it — Michael on Aug 14, 2018

Jerry replied on Aug 16, 2018
Looking for case interview partners for BCG

The step by step approach is by referring to the ratios given.

Travelco/Nice = 0.6

Nice/Travelco = 1.7

Super/Nice = 0.3

Flamingo/Nice = 0.4

Cool/Nice = 0.2

Then, from the x axis, we know Nice + Super + Travelco + Flamingo + Cool = 150.

Just by doing math manipulations, we can obtain Nice = 60; then Travelco is 0.6 X Nice, which is 36. Finally, Travelco market share = 36/150 = 24%.

Btw, may I know where I can get the this full case? I looks interesting. :)

Takaindisa Chivasa replied on Aug 16, 2018

Express every individual company market share as a function of NiceTravel’s market share (using RMS), then setup an equation to solve for Nice Travels market share (40%). From there onwards, use the expression for Travel Co market share relative to Nice Travel to solve for Travel Co market share.

M.tc=0.6M.nt

Thus M.tc=0.6x40% = 24%

Anonymous C replied on Aug 14, 2018

To the answers received so far: what's the number 1 you are adding in the denominator?

Because we want to compare that with the nice travel, so let’s say Cool=0.2*nice travel, and Flamingo=0.3*nice travel, but nice travel is not 1.7*nice travel — Michael on Aug 14, 2018 (edited)

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