Hello
I am not sure how reasonable to encounter a question like the following in interviews but I came across the following market growth question while practicing:
Market size (total revenues in thousands):
Argentina = 2500$
Japan = 3500$
Australia = 3500$
Sweden = 2500$
Company's expected market share at year 1
Argentina =35%
Japan = 25%
Australia = 20%
Sweden = 25%
Expected annual growth over the next 3 years is
Argentina =10%
Japan = 5%
Australia = 10%
Sweden = 15%
what are the revenues for the company at the end of year 3?
One way to do it is to multiply annual growth by the total revenues (market size) and get the growth at the end of year 1 , repeat for year 2, repeat for year 3 then assume company's share stays constant at the end of year 3 multiply the revenues at year 3 by the company's share.
Q1: is there a faster way to do it? This will take long time especially that we have to do it for 4 countried and the numbers are not nice to deal with
Q2:Another question can you give ideas about the differences (Pros/Cons) between distribution chanels: Distributors Versus Retail Versus Website?
website: higher profit margins - no intermediate in selling process
Retail: more brand exposure - easier customer service (local, same language)
Distributors: .... I do not know any !
Thanks !
(edited)
