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Thanks a lot Guennael :)
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Hi,
It doesn't matter whether you've done any market sizing or not. Market sizing is just a type of a case and you should be able to solve the cases on the case interview.
Here are some useful market sizing skills:
1) First of all, there are 2 ways to structure market sizing:
2) You should learn the key market sizing techniques:
3) Never say - let's assume 50%. Your assumption should always be based on something:
You should also adjust your assumption where it's possible (E.g. The average family size is 3 people, but since we are talking about New York where people are mostly single, I would assume the av. household size of 2 people)
4) You should learn the key tools:
5) Learn key numbers: populations, gas price, gas consumption, Boeing speed and number of seats, average salary, # of gates in the airport, GDP growth rate, inflation, etc.
6) Practice 10-15 cases and you'll be fine
Feel free to PM for clarifications or a session. I give 10 cases as homework and then we discuss them
Good Luck!
Overall, market sizing is one of the easiest parts of a case interviews. You can practice this very easily. There are a number of good sources around; PrepLounge has some, the book 'Case In Point' does too (I hate the book in general, but this specific section is about the only valuable chapter).
At a high level, there are two ways to approach:
- Top-down, usually "back of the envelope" type of math. This will take 2-5 minutes, and insert itself within a much longer/complex case. Often relevant at MBB and top tier-2
- Bottoms-up, involving a number of complex assumptions and calculations. You cannot do this in your head. It may become nearly the whole case, usually at lower ranked companies including big 4 and boutiques
No matter which you do, make sure to ask yourself at the end if the number makes sense (i.e., saying there are 1.5 billion police officers in NY would more than likely not be correct!)
Happy practice
Learn more about Market Sizing Questions and how to approach them in Case Interviews. The Case Interview Basics at PrepLounge offer you everything you need!
Thank you so much Vlad :)