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Mathematical transformation

Anonymous A asked on Aug 27, 2018

Dear users,

If we have a product portfolio of 4 products and an overall market share of 40%, can we assume for simplification in case cracking that we have 40% market share in each of the product's market, as it is just a math operation?

Thanks!

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Benjamin replied on Aug 27, 2018
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Hi,

On one hand its good that you take assumptions on your own.
On the other hand for such structural choice in the resolution make sur the interviewer agree with it ot provide more info for the rest of the case.

Best
Benjamin

Francesco replied on Aug 27, 2018
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Hi Anonymous,

I agree with Benjamin, Sidi and Vlad. When you have multiple products it is actually typical to have product mix differences and that the interviewer wants to specifically assess your ability to verify the correct data before moving forward. Thus, you should definitely verify your hypothesis with the interviewer before moving forward.

Best,

Francesco

Sidi
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replied on Aug 27, 2018
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Never make this assumption without verifying with interviewer! Making this assumption without checking would just demonstrate lacking depth of thinking, since you exclude the possibility of structural issues hiding behind the global average (which is actually quite common in case interviews!).

Cheers, Sidi

Vlad replied on Aug 27, 2018
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Hi,

You can only make this assumption if the interviewer confirms it is true.

I can easily imagine a situation when you have 40% market share in one product's market and 30% share in another. (Put any number)

Best

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