Online credit comparison portal wants to grow its business (market sizing + strategic case)

Hi there,

Providing some market sizing thinking for anyone revisiting this Q&A:

Remember that there's rarely a "best" answer with market sizing. What's important is that you break down the problem the way it makes sense to you. Importantly, break it down so that the assumptions you make are the ones you're most comfortable in.

For example, do you know all the major brands? Great go with that. Do you understand all the segments of that country's population (either age or wealth or job breakdown)? Go with that. Do you know the total market size of the tourism (or hotel) industry? Then break it down that way.

Some tips:

1. Just like in a case, make sure you understand the question - what are you really being asked to calculate
2. Decide whether a top-down or bottom-up approach is best
3. Figure out what you know you know, and what you know you don't know, but could estimate
   1. This helps you determine how to split out buckets
4. Stay flexible - you can start with a "high-level" market sizing, but gauge your interviewers reaction....if it looks like they want you to do more...then go along level deeper in terms of your splits

Thanks a lot! That is an interesting view and great help! Here my thoughts:

1. Market sizing
   1. What is the monthly additional credit volume a bank can attain when our client includes it on its platform? --> totally agree
2. Strategic
   1. Which banks should the client include in its portfolio? --> I agree with the dimensions you want to look at. However, maybe this question should/could be answered (more easily) using a profitability framework in a more straightforward way? At the end of the day we want to make money. So maybe we could look at it from a quantitative perspective (%commission, rejection rate, etc.) and from a qualitative perspective (customer preferences, financial stability etc.) Question to you: You list rejection rate under “financial stability” though I would put it in “benefit to you (the client”). Agree? What do you mean with “perception management”. How would you define “good track record”?
   2. Why do these banks offer a real value-add to the end-consumers? --> Here, I don’t completely agree with the answer/maybe we understand it differently. Maybe, the answer is more along if 2i holds (specifically, low rejection rate, diversified loan terms) then this is helpful to the end consumer because the likelihood of getting a loan is higher? What do you think? Maybe there is a more structured approach to this?
   3. Which banks should be added to the portfolio that are not yet part of any other comparison portal? --> Agree. I would put this in addition to 2i meaning that 2i must hold plus the additional criteria you mentioned here. Question: Is there maybe an opportunity to make this more MECE?

By all means, thanks a lot already! …and maybe you have some additional thoughts? :)

Best,
Andreas

(edited)