I came across a case in which I was given the market size, competitor shares, price of client's product, cost of client's product, a few product features, and asked to calculate the market share and price potential in 5 years. In such a question, should I make a best guess based on market concentration, product features, price, etc.? Is there any other method to calculate it? And would there be an exact answer to this question?
Get Active in Our Amazing Community of Over 451,000 Peers!
How to calculate expected market share if only overall market size, price, cost, and product information are given?
Overview of answers
-
Upvotes
-
Date ascending
-
Date descending
Hi there,
Yes! This is looking to see whether you can make reasonable assumptions/estimates.
To me, the key here tends to be in the product features.
With these types of cases, you often receive information on how your features stack up against the competition (and possibly information on customer preferences).
You need to basically say "ok, how much better is my product compared to competition?" You also need to consider how many competitors there are.
So, if there are six competitors and your product is average, you can assume ~16% market share. However, if your product is #1, then you could get between twice and much and 50% of the market share (i.e. 32-50%).
^This is just an example, but if you provide us the numbers we can help you come up with reasonable #s (and, most importantly, talk through the reasoning)
To add on Ian's answer - please be aware that there are no "right" answers or results here! This is a way to test your ability to infer a reasonable expectation from a set of base metrics, combined with the ability to clearly articulate the underlying logic of your projection.
Cheers, Sidi
Hello!
You need to make estimations, or "educated guesses".
Key here is to analyze the PRODUCT and the CLIENT, to see the value proposition of each of the players, and how this matches to the different clients (from now and in 5 years, since they evolve).
Hope it helps!
Best,
Clara
Related Products
Prepped and Primed 3
- 3 1-on-1 Coaching Sessions
- Fully tailored and customized
- 100+ video course included
McKinsey Solve Game Simulation Package by Francesco
- Play for Real the Ecosystem Game (Coral Reef & Mountain Ridge)
- Play for Real the Redrock Game (All 4 Phases Included)
- Receive for FREE the Imbellus Solve Combo and McKinsey Imbellus Game Secrets Guide
Break Into Consulting - Strategy Consulting Firm's All-In-One by Alexandre
- Created by 2 BCG consultants
- Covers most strategy consulting firms
- Get you to the backstage of the strategy world
Break Into Consulting - Industry Overviews by Alexandre
- Created by 2 BCG consultants
- 15+ industries covered
- Practical tips to master any industry
Break Into Consulting - Frameworks I wish I knew by Alexandre
- Created by 2 BCG consultants
- Covers most interview cases
- Practical tips to crack the case
BCG Online Case Combo: Software Simulation by Francesco
- Practice with 6 Chatbot Tests (Casey Style), including 4 Software Simulations
- Test Yourself with 4 Live One-Way Video Interviews (with AI Generated Tips)
- Receive for Free the BCG Online Case Secrets Guide
BCG Online Case Secrets by Francesco
- Master the 5 Types of Questions Asked by the Chatbot
- Discover the Exact Steps to Prepare for the 1-Minute Video Assessment
- Prepare in Advance by Solving 2 Complete Chatbot Cases
Imbellus Solve Combo: Guide + Videos by Francesco
- Watch how to Crack the Ecosystem Game in 23 Minutes
- Find Out how to Master each of the 4 Phases of the Redrock
- Receive for FREE the McKinsey Imbellus Game Secrets Guide
Imbellus Test at McKinsey – Guide by Luca
- Detailed and full game analysis
- Hands-on example to solve the game and support you
- Practical tips to crack the game
McKinsey Imbellus Solve Game Secrets by Francesco
- Learn the Exact Steps to Crack the 6 Games of the Imbellus
- Discover the Proven Way to Master the 5 Skills Tested in the Game
- Create your Ecosystem Chain Automatically with the Automated Excel Included
The Secret McKinsey PEI Cheat Sheet by Robert
- Learn how to correctly prepare and structure your McKinsey PEI
- Impress your McKinsey interviewer with a perfect PEI
- Save tons of time in your PEI prep
BCG Potential Test #2 by Gaurav
- BCG Potential Test with 23 questions about "World Electrification Case"
- Created by ex-MBB interviewer Gaurav
- Format and style for a real test experience
BCG Potential Test #1 by Francesco
- BCG Potential Test with 23 questions about "CoverCell Case"
- Created by ex-BCG consultant Francesco
- Format and style for a real test experience
Prep Guide for McKinsey PST by PrepLounge
- McKinsey PST preparation guide incl. 13 pages of useful tips
- Created by ex-McKinsey consultants
- Detailed information on test structure, question types & core skills
McKinsey PST #3 by Riccardo
- PST with 26 questions about "Delicious Juice Case"
- Created by ex-MBB consultant Riccardo
- Industries: Beverage, tourism, pharma
McKinsey PST #2 by Gaurav
- PST with 26 questions about "WeKlin Case"
- Created by ex-McKinsey consultants
- Industries: Retail, energy, franchise
McKinsey PST #1 by PrepLounge
- PST with 26 questions about "FloraFashion Case"
- Created by ex-McKinsey consultants
- Industries: Retail, energy, franchise
Related Articles
Related Cases
Related Case Interview Basics article(s)
The PESTEL Analysis for Consulting
Unlock the potential of PESTEL analysis to drive success and thrive in the dynamic world of consulting.
Influence Model
The Influence Model by McKinsey emerged in the early 2000s and is the result of practical experience of the consultants at McKinsey & Company.
The Role of the Hypothesis in Consulting
Explore how hypotheses serve as guiding lights in the dynamic world of consulting, leading to innovative solutions and transformative outcomes.
The Capability Maturity Model (CMM)
Discover the CMM framework and its extension to the Capability Maturity Model Integration (CMMI), focuses on improving processes within an organization.
McKinsey Growth Pyramid
Structured framework for sustainable corporate development, including market penetration, product development, market development and diversification.