Market Size is the measurement of the total volume of a given market. In simpler terms, it’s the general size of the market in which a business is placed in. Consultants use this calculation a lot when doing research for clients and creating forecast reports and it is often a question asked in case studies and interviews to see how your financial head for numbers and business sense works.
There are several ways to think about approaching such market sizing questions and practice of course makes perfect! So get reading the help sheets below, follow the worked through examples and have a go at the practice questions!
1) http://www.academia.edu/4597326/Harvard_Business_School_Management_Consulting_Club_Case_Interview_Guide_Harvard_Business_School_Management_Consulting_Club_Case_Interview_Guide This is a pretty helpful document from the Harvard Business School on how to tackle case interview questions. Includes lots of flow charts to try and visually organise your strategic thinking when having a go at the problems. Consists of a lot of questions to help train your pattern of thought rather than worked through examples though. Can also be downloaded as a pdf for printing
2) http://www.docstoc.com/docs/73338650/Mckinsey-Market-Sizing-in-Consulting-Companies-Questions A slide show style document going through some McKinsey case interview questions based on market size. Includes a list of some of the common mistakes which you should be aware to avoid!
3) http://businessorientedwomen.com/wp-content/uploads/2013/01/ace-your-case-iii-market-sizing-questions.pdf Here is the Wetfeet guide to Market sizing questions in the case interview that you can download for free!
4) http://managementconsulted.com/case-interviews/case-interview-question/ Using an example of how many baseballs fit inside a Boeing 747 often asked in the case study assessment, this shows how to calculate market size.
5) http://www.mconsultingprep.com/case-interview/interviewer-drive-cases/market-sizing-guesstimate/ Explains the ‘4-step approach’ to these questions and some worked through examples.
6) http://www.mconsultingprep.com/market-sizing-guesstimate-case-question-tips-and-tricks/ Another post with 5 useful tips on market sizing
7) http://www.simplythecase.com/the-market-sizing-question-in-3-steps/ This blog has several useful posts on the consulting case interview but here is a useful 3 step market sizing post.
8) http://www.consultingcase101.com/case-interview-questions/market-sizing/ Loads of worked through market sizing questions here, though to read them all you need to fork out a subscription of $6.99 a month
9) http://www.wallstreetoasis.com/forums/how-best-to-prepare-for-market-sizing-questions A post on a forum asking for help on prepping for the market sizing questions has some answers from those who have been through the process with examples of what they were asked.
10) http://www.orcinternational.com/US/Insight/recorded-webinars/Documents/Market%20Size%20Estimation%20Whitepaper.pdf A more technical look at market sizing here offering a new way to calculate and analyse this data.
Here an LEK consultant goes through the market sizing question in the case study
Finally, here is a video on tips about measuring markets – aimed slightly at start-up companies but still a short useful set of info