Hi there,

I'd recommend a slightly different approach. The main problem is that you're totally guessing on most numbers here. The entire point of market sizing breakdowns is to break down the problem into sections you can reasonably estimate.

Additionally, when making assumptions, they need to be within the realm of reason - there is a 0% chance that each hostpital only has 1 blood-pressure monitor!

Here's what I would do:

1. Breakdown US into # of towns/counties, small cities, medium cities, and large cities
2. Estimate # of hospitals per town/city AND # of clinics
3. Estimate # of blood-pressure monitors in a given clinic (here you can say there are a handful) and in a given hospital (visualize how many rooms there might be. Safe to say there's around a 50% "blood-pressure monitor occupancy rate" per room
4. Add these all up

Then, make your life easier by doing some % of this # to estimate how many monitors are owned by individuals and businesses.

I think your approach makes sense, but would change it in two places:

• No of Hospitals:
  • I'd try to make it more tangible. Guessing number of people that get sick and utilization will be tricky.
  • A better way might be to imagine your hometown: Roughly count the number of hospitals and take the population. Then you can scale that number by total population
  • If you want to make this more specific, you can assume different hospital densities for urban vs rural areas to add one more level of specificity
• No of monitors per hospital
  • I struggle to see how every hospital would only have one monitor
  • Here you should ask for clarification what that monitor actually is. I assume it's something like a device that more or less every patient in ICU is hooked up to
  • Then you can break down the number of ICU beds and assume spare capacity in case one breaks (add e.g. 30%)

Hope this helps!

Hello!

Overall it´s good, however, I wouldn´t agree with the assumption that each hospital only has one monitor. Don´t you need at least one per each ICU bed, plus ORs, etc?

That would be one of the ocasions in which you would need to ask and work with the interviewer to understand better what they are referring to. 

Hope it helps!

Cheers, 

Clara