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Market size of vans repairs

Anonymous A

Hi,

How would you estimate the market size for van (light trucks) repairs in the UK?

Vlad replied on 07/11/2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

I would calculate it the following way:

1) Calculating the number of private vehicles

  • Calculate the number of households in UK
  • Multiply by the average number of cars per household

2) Calculating the number of Vans

  • You can say for example that every 10th car is a Van based on your observations.
  • Number of Vans = Number of private cars / 9

3) Calculating the size of the market:

  • Calculate the Average number of repairs per lifetime of a van (e.g. 0 in the 1st year, 3-5 in the 10th year)
  • Divide by the lifetime of a van to get the average number of the repairs per year
  • Multiply by the number of Vans
  • You can apply the average cost of a truck repair that the interviewer provides

Best

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