Could you please guide me on this case offered on Bain website, here is the link
from the minute 4-10 they talk about the statistics to calculate what would be the market size...
my Q is exactly here. we have 600k restaurant in the US, 5% of them are willing to buy the e-menu and they buy in average 30 devices + we need the # of resto that replace their devices which is 50% according to the interviewer
the math for me is 600k *2% = 30k restaurant - new customer
30k* 50% = 15k existing customer who replace --> the whole market = 45k restaurant then 45k*30 devices = 1mil350K devices
BUT the interviewee did not not consider 30k new restaurants and just calculated the 15k who replace the devices to calculate the market size in $
at the end, the interviewer evaluated that the candidate calculation is accurate..... How?! WHY?
thank you for your justification