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How many gas stations are there in USA? better to do it demand or supply side?

Market analysis
Recent activity on Mar 18, 2019
3 Answers
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B asked on Mar 18, 2019
McKinsey cases only

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Vlad
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replied on Mar 18, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

The gas station solution starts with demand but then switches to supply to fulfill that demand. Thus It's a mix. Pls search this forum for a similar question on gas stations in Paris.

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Alexander replied on Mar 18, 2019

The Bootcamp article on market sizing (https://www.preplounge.com/en/bootcamp.php/case-cracking-toolbox/identify-your-case-type/market-sizing) has an example with the number of gas stations in Paris. Their approach combines supply and demand and I think that an analogous approach, but with further segmentation to reflect that the US is essentially split into rural and metropolitan areas, would work well.

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Anonymous A replied on Mar 18, 2019

Demand.

The supply side assumes there is a bottleneck. If there is no bottleneck, then supply is driven by demand. Supply side esimations can include mark size of limited editions of luxury goods, tesla car market, US tourist visas, ticket sales in a stadium (all have bottlenecks and limitations of some sort).

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Vlad gave the best answer

Vlad

McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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