Market Share

Question

Hi everybody,

when the interviewer ask you "how to increase market share" he means increase volumes (so number of unit sold or revenues (so price*volume)?

Thanks!

Answer 1

It can be either one, you can define Market Share in term of units sold or in terms of revenue. I would say it depends on how you previously defined it during the case and the particular objectives, but it is usually a good idea to ask the interviewer if you are uncertain.

Also, there are other ways to increase Market Share, like acquiring a competitor or if competitors leave the market.

Hope this helps.

Answer 2

Hi,

You need to ask the interviewer since it can mean any.

Overall, I suggest asking the following questions:

1) Clarify the business model / how the business actually makes money. Even if you think you understand it, try to repeat it to make sure that you understand it correctly. e.g. if the case is about oil&gas company which revenues are declining, ask if it is Up / mid / down-stream problem. In this case, defining a revenue stream is critical to setting up the right structure.

2) Clarify the objective. Here make sure that your goal is:

Measurable
Has a time-framed
Has / has no limitations

e.g. Should I invest 100k in this business for 1 year if I want to get 15% return?

3) Ask the questions that will help you build a relevant structure and remove ambiguity.

Best!

Answer 3

Could be either of them. Rule of thumb in a case interview, if you are uncertain about anything, clarify with your interviewer instead of making an implicit assumption yourself.