I am a bit confused on how to approach market sizing information when the question is very broad. Any tips?
How do I approach vague market sizing questions?
As usual, if the question is vague you should first try to clarify the scope with the interviewer :
- what's are the revenu we want to consider ?
- what's the geographic perimeter ?
- How granular should we be in hyp. definition ?
To be honest, your question is quite vague since it has no further explanation or an example.
Based on my understanding of your question, you should ask the clarifying questions that will help you narrow down the objective. E.g.:
- Are we talking about only b2c or also b2b market? (e.g. tires market)
- Are we talking about men or women? (e.g. business suits market)
- Are we talking about private real estate or commercial real estate?
The real answer is depends. Each mkt sizing question is different and needs to be solved in a different way
You usually have bottom-up and top-down approaches. A good start is to try to understand first which one would work best/ would be the most effcient way to get to an accurate estimate. Once you select a methodology you can start drafting the path to the solution in your head.
Also, leverge your interviewer to check your ideas.
Hope that helps a bit
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