Hi!
You are very right to doubt this statement. In fact, the provided information is NOT justifying the statement! "More valuable" has to be defined - otherwise it is impossible to come to a verdict. If "valuable" is defined in terms of profits that a market entrant can expect, then the per capita consumption is just one of multiple driving factors. Others include competing suppliers of the same good, price level, country-specific cost positions, etc.
So either you have just provided a small snippet of the relevant information, or the solution of this case is (as it happens very oftne in case books) flawed and derived from weak thinking. I would almost bet that the latter is the case - this is why I always warn my mentees to not waste their time with the solutions provided in case books. They are almost never good, let alone great. Thinking rigorously will allow to spot such flaws more or less instantly.
Bust of success with the further preparation.
Cheers, Sidi
Hi!
You are very right to doubt this statement. In fact, the provided information is NOT justifying the statement! "More valuable" has to be defined - otherwise it is impossible to come to a verdict. If "valuable" is defined in terms of profits that a market entrant can expect, then the per capita consumption is just one of multiple driving factors. Others include competing suppliers of the same good, price level, country-specific cost positions, etc.
So either you have just provided a small snippet of the relevant information, or the solution of this case is (as it happens very oftne in case books) flawed and derived from weak thinking. I would almost bet that the latter is the case - this is why I always warn my mentees to not waste their time with the solutions provided in case books. They are almost never good, let alone great. Thinking rigorously will allow to spot such flaws more or less instantly.
Bust of success with the further preparation.
Cheers, Sidi
