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Size of a market for new product

Anonymous A

As part of a product introducation case, I have been asked to determine the size of the total addressable market in Germany in less than 5 minutes.

Our client would like to launch an innovative product for big hospitals. How many big hospitals are there in Germany?

Vlad replied on 08/13/2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

  1. Assume an average number of times a person gets into the hospital per lifetime (N)
  2. The number of people that gets into hospitals per year = population x N / average lifetime (80 years)
  3. Assume the average time spent at the hospital (e.g. 7 days)
  4. The number of people at the hospitals on any given day = The number of people that gets into hospitals per year / 365 * 7
  5. Assume a % of people who get into the big hospitals and divide the number by the average number of occupied beds in a single hospital. Thus you'll get the number of hospitals

Best!

(edited)

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