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Calculation Logic

Stern Stewart Case: Sports Growth
New answer on Apr 26, 2022
1 Answer
1.3 k Views
Arun asked on Apr 25, 2022

I am not very comfortable with the logic being used to calculate size of target group. How can we multiply Market share of Sporting goods manufacturer with population and % of population using online channel to calculate size of target group. Both have different unit base.  One has population and other has sporting goods.

Am I missing something here?

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Ian
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replied on Apr 26, 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Arun,

Your question is quite unclear. I'm trying to decipher it alongside the case, but can't make sense of it.

Could you kindly provide more information? If you reference a specific section and chart/text that can help us better answer your question!

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Arun on Apr 26, 2022

Hi Ian, I am referring to the solution part of Phase 2 under France and Germany calculation. In solution part, we are multiplying market share of client in sporting goods with population (Total & % of population who uses online shopping) to calculate size of target group. I guess either we need to know % of population who buys sporting goods or given information of "proportion of population uses online shopping" could be titled as "proportion of population uses online shopping for sporting goods" Thanks, Arun

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