Hi guys - I've got an last minute interview arranged for this week that I know is going to include a market sizing element. Are there any essential tips / approaches / frameworks for market sizing cases that I should be aware of? I'm trying to do some rapid prep before the end of the week. Best
Quick tips for market sizing?
1) first of all every market size can be a bit different, but the most important thing is that you should be able to understand and figure out a specific driver...
for example if the product/ service is connected to the average use from people... you can use the population as main driver; instead if it is something connected to a geographical distribution (eg number of taxi or newsstands in New York City) you can think about the number of blocks and then position a reasonable number of items suing the blocks
2) once you have figured out the main driver, you can think about a segmentation (eg by age brackets...)
3) then you need to make reasonable hypothesis to convert a number (eg number of people or number of shops...) into a yearly revenue figure. Important here to remember that the market size is usually an yearly figure and not a monthly one...
lets try to make as much granular thinking as possible, while not exceeding 15/20 minutes.
its usually a good strategy rounding numbers
let me know if I can help you more!
Please refer to this excellent article on Preplounge: https://www.preplounge.com/en/bootcamp.php/case-cracking-toolbox/identify-your-case-type/market-sizing
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