In the market sizing approach, instead of calculating each age segment, we already know that around 40% of people are looking for tablets from our data, that could have saved time instead of calculating in this case, just a tip and it would've showed that we can relate to our previous data as well Great video, much appreciated
i love the way it's tricking you to believe it's a profitability case so in your mind you put together a profitability framework when in reality it's a market entry case. you have to be flexible thanks again Taylor!
I really like your videos! Amazing example, I was so happy to calculate almost the same market size for tablets.... the only difference I used a lower avg price for tablets :) .... THANK YOU!
Thank you for this, your videos are the most helpful out of all I could find. When it comes to the US Population breakdown, was it MECE? It's a detail but I think it should be age 0-20 and then from 21 to 40, then from 41 to 60 and from 61 to 80. Also to make sure it's collectively exhaustive, should we also add an age group for 81 or older?
We assumed human life expectancy is 0-80 years. With that assumption, the four age buckets are technically MECE. If we didn't make a life expectancy assumption, then we would need a bucket for 81 or older.
Profit is in absolute dollars (e.g., $300 of profit). Profitability is a percentage (e.g., a $100 product that costs $50 to make has a 50% profit margin)
Interviewer said profit margin laptop 20%. And profit margin tablets=30%. How did you said "the average tablet profit margin are 50% higher than that of the laptop ? " can anyone explain it?
would you really call it "perfect" if the interviewer has to explicitly ask the interviewee for the underlying assumptions for the market sizing question? i guess it would be "more perfect" if the interviewee had stated these assumptions upfront
not sure... as usually mbb interviews expect interviewee to have interactive communications with the interviewer and not expecting him/her to present everything without having interactions (they expect interactions rather than presentation) . So may be we could strategically miss it out so that the interviewee has something to ask and so that we can have interactions with them..??
Am I crazy or was there a math error for the market size part? The percentages that the interviewee assigned for the age groups added up to 112.5% and not 100%.
The percentages mentioned are the percentage of that particular age group using tablets. The sum of the percentages of all age groups need not be 100%, for example, if 100% of all age groups use tablets then the sum goes up to 400. Summing the individual percentages is immaterial/useless here. Hope this clarifies your doubt
ridiculous wrong answer!! the profit is going down not because the people are buying more tablet, actually they are buying also more laptop you are just selling less of them. And you are the selling a course on this bah 🤦♂
i think this was meant as a general population survey. Not their acutal sales. So it makes sense to not go via the actual number, but the percentage to verify the assumption.
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In the market sizing approach, instead of calculating each age segment, we already know that around 40% of people are looking for tablets from our data, that could have saved time instead of calculating in this case, just a tip and it would've showed that we can relate to our previous data as well
Great video, much appreciated
but that is just a consumer survey from 40000 people
i love the way it's tricking you to believe it's a profitability case so in your mind you put together a profitability framework when in reality it's a market entry case.
you have to be flexible
thanks again Taylor!
Glad the video was helpful for you!
Very well structured. Thank you for sharing.
I really like your videos! Amazing example, I was so happy to calculate almost the same market size for tablets.... the only difference I used a lower avg price for tablets :) .... THANK YOU!
Glad it was helpful! The numbers that you use don't matter as much as the methodology you use to calculate the final answer.
I loved this video!
thanks for making the video!
Sure thing!
Thank you for this, your videos are the most helpful out of all I could find. When it comes to the US Population breakdown, was it MECE? It's a detail but I think it should be age 0-20 and then from 21 to 40, then from 41 to 60 and from 61 to 80. Also to make sure it's collectively exhaustive, should we also add an age group for 81 or older?
We assumed human life expectancy is 0-80 years. With that assumption, the four age buckets are technically MECE. If we didn't make a life expectancy assumption, then we would need a bucket for 81 or older.
when you say is there a decline in the profit or the profitability, what’s the difference here??
Profit is in absolute dollars (e.g., $300 of profit). Profitability is a percentage (e.g., a $100 product that costs $50 to make has a 50% profit margin)
Amazing
nice video
3:48
3-4 minutes to structure the framework? I’ve heard less than a minute and half is best. Also you should include risks in the recommendation!
good video and very helpful! but totally scripted. does not sound like a real conversation. ;)
Interviewer said profit margin laptop 20%. And profit margin tablets=30%. How did you said "the average tablet profit margin are 50% higher than that of the laptop ? " can anyone explain it?
20% times 1.5 = 30%. So laptop profit margins would have to increase by 50% to go from 20% to 30%.
@@arpitgoyal1979 why do we multiply it by 1.5?
@@joud993 50% increase
10 is half of 20, so an increase of 10 percent, which is from %20 to %30, equals to %50 percent or 1/2 increase.
30-20=10
10=20×(50/100), %50
would you really call it "perfect" if the interviewer has to explicitly ask the interviewee for the underlying assumptions for the market sizing question? i guess it would be "more perfect" if the interviewee had stated these assumptions upfront
not sure... as usually mbb interviews expect interviewee to have interactive communications with the interviewer and not expecting him/her to present everything without having interactions (they expect interactions rather than presentation) .
So may be we could strategically miss it out so that the interviewee has something to ask and so that we can have interactions with them..??
Am I crazy or was there a math error for the market size part? The percentages that the interviewee assigned for the age groups added up to 112.5% and not 100%.
The percentages mentioned are the percentage of that particular age group using tablets. The sum of the percentages of all age groups need not be 100%, for example, if 100% of all age groups use tablets then the sum goes up to 400. Summing the individual percentages is immaterial/useless here. Hope this clarifies your doubt
@@loppar1 thank you!
ridiculous wrong answer!! the profit is going down not because the people are buying more tablet, actually they are buying also more laptop you are just selling less of them. And you are the selling a course on this bah 🤦♂
i think this was meant as a general population survey. Not their acutal sales. So it makes sense to not go via the actual number, but the percentage to verify the assumption.
@@benediktwildoer8384 fuck man u right, i m stupid