Got this question in a recent interview. And containers replacing old ones are excluded.
I was really stuck there and in the end started from GDP and growth rate.
Really curious how you would approach this..
mmm, difficult one, I would certainly hope that they would give a bit more data.
Market size of new containers = #new containers sold x $new containers
#new containers = extra volume needed to be transported / volume of container
Volume of container = size of market today/#containers now
Extra volume needed to be transported = volume predicted for future – volume needed now
Volume predicted for future = (transportation segment growth%+100%) x volume needed now
Volume needed now = transportation segment now/#containers now
Transportation segment growth% = % growth of GDP of China x correlating factor
Correlating factor = I would guess 1:1 since I would assume that the growth of China's GDP is heavily depended on manufactured goods which need to be transported.
GDP of China = let’s take 10%
Transportation segment now = ask? Link also back to GDP?
#containers now = ask? If we don't have data for China, maybe for other countries and compare the market sizes.
Not a straightforward one to me, I'm curious to the other answers.
It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.
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