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..
Market size of new containers (land transportation) in China
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.
Related BootCamp article(s)
Market Sizing
Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.
16 Comment(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.
9 Comment(s)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
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
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
Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitam ... Open whole case
Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched th ... Open whole case
Similar questions
