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Market Sizing - different year

Anonymous A asked on Oct 12, 2018

Hello,

I was wondering if I could have some feedback regarding this market sizing I encountered and more specifically on the approach you would to adopt to make up for the time difference:

" How many cars were sold by mercedes in 1970 in Germany"

Thanks in advance for your feedback !

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Guennael replied on Oct 13, 2018
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Couple of other solutions:

1. Answer for today, then adjust for 50 years ago based on population growth / economic growth / auto park growth / market share growth (pick at least one)

2. Take the hint and realize your interviewer wants you to really do a market sizing exercise without relying on existing knowledge (how many of us here on PrepLounge were even born then? right!) and go through the whole exercise by questioning every assumption you 'think you know'

Elias
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updated his answer on Oct 13, 2018
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Also, it might reflect well on your general knowledge if you know that at that time Germany meant West Germany only...

(edited)

Benjamin replied on Oct 12, 2018
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Hi,
Not so complicated, you just need to adapt your assumptions to 1970's figures.
Personnaly i would proceed top / down :

- Evaluate new car selling market in 1970's, based on population size with an assumption on the share of pop. owning car, then % of new car bought annually

- assume a market share for mercedes and apply it to the above market

Best
Benjamin

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