Market size for the computer hardware businesses in the UK

Anonymous A asked on Nov 12, 2019 - 2 answers

Is this approach good?

To calculate revenue generated from computer hardware business in the UK last year, I would split into personal and business.


  1. Split population into age groups
  2. Find proportion of that age group that would own computer hardware
  3. Use replacement rate to find computer hardware that year
  4. Times by average price of laptop?

I'm not sure how to calculate business. My guess is that I would need to take into account peripherals and services but how would one start this?

2 answers

  • Upvotes
  • Date ascending
  • Date descending
updated his answer on Nov 15, 2019
Ex McKinsey EM with 7 years of recruiting experience/ received all 3 MBB offers/Real MBB cases
Book a coaching with Udayan

100% Recommendation Rate

27 Meetings

96 Q&A Upvotes

USD 149 / Coaching


An alternative approach to this is to split the population into households vs age groups.

- So assuming population of 60M, and a HH size of 3 let's say 20M HH in the UK

- Then make assumptions around computer hardware here - assuming it is desktops and laptops for now you can go with 4 or more per HH (most numbers work with some kind of justification)

- Once you arrive at the market value using replacement rate and average price of hardware you have the personal market (B2C) size for computer hardware in the UK

- For the B2B market, an alternate methodology is to assume that the total market size is xx% personal and yy% B2B. If we play with some assumptions for a bit, you can see that businesses will have higher replacement needs and higher prices as they can afford to pay more. However it is likely that there are fewer Business laptops than personal ones (as many people dont work and go to school etc.). It is reasonable to assume in my opinion that 50% of the market is B2B and 50% B2C - so if you double your estimate for personal you will be able to get total computer hardware market size for the UK

Hope this helps,



replied on Nov 12, 2019
McKinsey | 10+ interviews passed (100% success rate) | 60+ candidates coached
Book a coaching with Antonello

100% Recommendation Rate

36 Meetings

377 Q&A Upvotes

USD 159 / Coaching

it is a good approach. I would also add the difference between laptop and desktop: while for laptops you can perform your arguments, for desktop I would treat it as a household problem.

For business PCs, you can make a strong assumption - if interviewer agree - like: I would consider as many PC for business (school, hospitals, professionals, companies, etc.) as for personal use. Otherwise, try to make assumptions about the percentages of people working in service sectors (and that need business PC).

You can then add a percentage for accessories and other service correlated to HW (e.g., insurance, assistance)


Related BootCamp article(s)

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

1 Q&A

Market Sizing

Market Sizing Questions are used to test your quantitative & reasoning skills. Learn more on how interviewers evaluate your given answer!

1 Q&A

Related case(s)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Bain Case: Old Winery

Solved 40.6k times
4.4 5 1058
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

Roland Berger Case: Onlinestar

Solved 25.6k times
4.3 5 554
| Rating: (4.3 / 5.0)

Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case

TKMC Case: Elevators

Solved 12.6k times
4.2 5 1150
| Rating: (4.2 / 5.0)

Your customer is the market leader in the North American elevator service business. This is divided into the areas of elevator construction, elevator modernization and service. The customer has a particularly strong branch network in medium-sized cities and would now like to expand its business in ... Open whole case

Our client Pharma Finance just finalized its first investment round and received $ 40m to invest in the build-up of a pharmaceutical manufacturing company. The CEO is mainly interested in high margins and profitable markets, with a sustainable and green production. This is why he wants you to find o ... Open whole case