Deloitte Case question

Nick asked on May 23, 2019

Hi all,

I'm trying to solve one of Deloitte cases about retail strategy.

Please see in attachment the actual case and exhibit. The question I'm puzzled with is "What is the expected overall market size for Club Co., regardless of the business model selected?". The answer provided by Deloitte is $8.8M, due to 88% usage rate out of current 10M visitors. I would agree with the answer with 8.8M wouldn't have a dollar sign, meaning there are potentially 8.8M clients who might buy the product. However, those 8.8M members are not equal $8.8M in potential revenue! I'm sure I'm missing something, could someone advise if I'm wrong in my logic?

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Anonymous updated his answer on Jun 03, 2019

Hi Nick,

honestly, given the data I believe there is a flaw somewhere in the case. Why not contact them to find out?

Best regards

(edited)

Hi Jakob, thanks for reply. That's what I'm thinking to do, but to be on a safe side posted here first, in case I'm wrong. — Nick on May 24, 2019

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