Can anyone suggest the method for estimating the market size for diabetes devices?
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Hi there,
The best way to learn is by doing :) Post your approach here and we can provide feedback!
General Tips for Market Sizing
- Just like in a case, make sure you understand the question - what are you really being asked to calculate
- Decide whether a top-down or bottom-up approach is best
- Figure out what you know you know, and what you know you don't know, but could estimate
- This helps you determine how to split out buckets
- Stay flexible - you can start with a "high-level" market sizing, but gauge your interviewers reaction....if it looks like they want you to do more...then go along level deeper in terms of your splits
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Hi anonymous,
As has been suggested it would be most helpful if you can suggest an approach that we can discuss before just asking for the answer. A few tips and things to think about here:
- De-scoping the market (are we talking about a certain geography, type of diabetes, market size in revenue vs. volume)
- Top-down vs. bottoms-up approach
- What are the key drivers of the market size in this case (addressable population, % of population with relevant diabetes disease, replacement rates, willingness / ability to pay)
- Useful lifetime of these diabetes devices (to figure out the replacement rate
Best regards,
Axel
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Hi there,
In addition to the answers provided by the other coaches, in case you want to practice more of market sizing questions:
- https://www.preplounge.com/en/consulting-forum/how-much-would-you-charge-to-clean-all-the-windows-in-seattle-4965
- https://www.preplounge.com/en/consulting-forum/how-would-you-calculate-the-value-of-a-cow-4982
- https://www.preplounge.com/en/consulting-forum/estimate-number-of-traffic-lights-in-a-london-5692
- https://www.preplounge.com/en/consulting-forum/how-to-estimate-the-size-of-the-bottled-water-market-in-france-9286
- https://www.preplounge.com/en/consulting-forum/estimating-of-cryptocurrency-owners-market-sizing-9180
- https://www.preplounge.com/en/consulting-forum/how-many-wealthy-people-are-in-the-uk-8819
- https://www.preplounge.com/en/consulting-forum/how-would-you-estimate-the-market-size-for-video-games-in-the-usa-9427
Hope that helps!
GB
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Hello!
I would always recommend you to give it a shot and then post it here, this would help you the most.
This is a very typical market sizing case, where the key steps are:
- Calculate the total population
- Calculate the % of population that could be interested in this product (this could be done by clustering -the classical ones are age groups, purchaching power, etc.-)
- Calculate the % of the total adressable market that any firm in particular could have -in case it´s asked only-.
Hope it helps!
Cheers,
Clara
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