Hi All,
I have done a lot of market sizing practice for case interviews, however, I was wondering how this differs from having to size the market on an actual consulting project? For the interviews this is done fairly quickly drawing out an equation, applying assumptions, etc.. Very intrigued to know how this is applied on actual projects.
Thank you.
Hi there,
I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:
If you would like a more detailed discussion on how to address your specific situation, please don't hesitate to contact me directly.
Best,
Hagen
(edited)
Hi there,
How “typical” candidates do market sizing? Competely different to the real world (and why they often fail interviews)
How “optimal” candidates do market sizing? Very similar to an actual project. (and why they often pass market sizing in interviews)
Remember that the entire interview process is designed to mimic the real world. That's the entire point!
However, unfortunately most candidates just memorize stuff. They follow steps but they don't learn how to think and approach problems like a real consultant. Once they do, they drastically increase their chances of success.
Remember, market sizing is not about randomly picking numbers and buckets. There is a logical process to it!
(edited)
Hi there,
complementing Allen - I would say the logic building blocks in real cases are similar vs interview
e.g. I had to size the solar pv, energy efficiency market evolution at 5 years for specific residential and industrial segments
We built a semi-sophisticated excel model but basically my team
1) estimated “smart”drivers and proxies for market size evolution based on reports, business sense, client knowledge, bcg knowledge
→ you will size most of the time obscure sub-segments of market where no deterministic data points are available
2) triangulated / pressure-tested outcomes
in summary a more in depth exercise vs an interview but built on EXACTLY the same conceptual tools and reasoning (hence the relevance of asking mkt sizing questions during interview :) )
As a general tip, you might as well start these questions with, “I know it depends, but…”
I have always been shocked how similar the “market sizing” process is to what one does during interviews. Often applied when trying to estimate savings from different initiatives. Identify the drivers, estimate the values, communicate.
Sometimes you need to triangulate assumptions with other knowledgeable sources, but they're basically going to do the same thing also!
Best,
Allen
Hi there,
the main difference between a case interview and real life market sizing exercises
(1) You have more time and data sources available to get better estimates
(2) You are able to test multiple approaches/structures to get to the market size
(3) You are better able to triangulate/reality check outcomes
What is very similar is the fact that a structured approach is used, as in case interviews.
Cheers
Andreas
