Get Active in Our Amazing Community of Over 451,000 Peers!

Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!

Size of a market for new product

BCG Product introduction
Recent activity on Aug 13, 2018
1 Answer
2.2 k Views
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?

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Vlad
Expert
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)

Was this answer helpful?
How likely are you to recommend us to a friend or fellow student?
0
1
2
3
4
5
6
7
8
9
10
0 = Not likely
10 = Very likely