Size of a market for new product

BCG Product introduction
Recent activity on Aug 13, 2018
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Anonymous A asked on Aug 13, 2018

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?

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Vlad
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updated an answer on Aug 13, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / 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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Vlad

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