Consulting Market Sizing Questions

Hi everyone,
In this video, I conduct a market sizing interview with Jeffrey, who is preparing for MBB interviews.
Jeffrey did a super good job answering my question and passed the interview.
So, you will see what a market sizing interview at McKinsey, BCG, Bain, or any other top consulting firm looks like and what a great answer is.
If you want to ace the market sizing questions, check out my website Careerinconsulting.com
With that, let’s jump to Jeffrey’s interview.
➡️ My market sizing course: careerinconsulting.com/market...
➡️ My free case interview training: careerinconsulting.thrivecart...
➡️ My newsletter to get 1 free mini-course in your inbox: careerinconsulting.com/newsle...
➡️ Career in consulting: careerinconsulting.com/
➡️ My Linkedin: / sebastienritter
-------------------------------------------------------------------------------------------------------------
Music: High Above by Nicolai Heidlas
/ nicolai-heidlas
Pictures: unsplash.com
-------------------------------------------------------------------------------------------------------------
TAGS
McKinsey, BCG, Bain & Company, McKinsey & Company, Management Consulting, Roland Berger, AT Kearney, Market Sizing, Market Sizing Questions, Market Sizing Examples, Case Interview, Market Sizing Case

[@chiquynh6966]

I am new to this so it is really useful ! Thanks for sharing this

[@boracelikturk369]

Can't believe I forgot to include the number of iPads and macs in the structure.

[@namanvohra8262]

Thanks for sharing this. I am new to market sizing and this was my approach, I actually paused the video first after u provided the problem statement. Would be really grateful if you could please provide a feedback to my solution.
-US population = 300 000 000
-70% of US population must be having an Apple product as Apple is a reliable and a product local to US itself which indicates a high number of consumers
70% * 300 000 000 = 210 000 000
-Then each person must be having 3 paid apps on average (I actually think similarly to Jeffrey, I myself have limited number of paid apps)
210 000 000 * 3 = 630 000 000
-Followed by this, I assumed that each app has a monthly price of $6 out of which apple receives $3, with the remaining money going to the app creator as commission
630 000 000 * 3 = $1890 000 000/month
-But since you mentioned the revenue per year, I multiplied $1890 000 000 * 12 which means that the annual revenue is $22 680 000 000 or 22 billion dollars.

[@123sarfraz123]

A very good video and good approach to the problem. I wish the framework picture was at the end of the video to visualise.

[@oksanaoksana3190]

Good day! Thank you for sharing your knowledge!

[@neogpt640]

Really good feedback on the answer!

[@ibukunoluwaakinrinde1077]

Many thanks for sharing this.

[@brandonyoung7794]

Thank you for the valuable info.

[@boracelikturk369]

14:45 For sure Apple is making a lot of money off of the App Store, but I'd say around 95% of that revenue comes from free downloaded apps because they also take a commission out of them. Also, this is the point where the interviewee forgot to ask whether Apple takes a fixed dollar amount for every time a paid app is downloaded, or it has a percentage way of getting money, where for instance Apple takes %10 of commission with regards to the selling price of app. I don't think that we can make the assumption here by solely just taking the average price of a paid app. It should've been deeper there. But all in all, I'd give him a pass. Nicely done.

[@abduabd]

This was goo; thanks for sharing. I think what could make it even more helpful is a screenshot of the framework used because I found it a little difficult to follow. Otherwise, though, great job. Super helpful video.

[@careerinconsulting]

Thanks! Good point: I'll add screenshots of the framework for the next videos

[@sho4459]

Another thing which might be worth considering is the age range at which people use smartphones? I'd say the very young and the very old probably either A) won't use as many smartphones or B) won't download as many apps as the 'middle' ages?

[@cheexhon6]

Thanks for sharing. One question came to my mind about the entire structure.
So basically the revenue stream consists of a one-time fee upon download. Right?
Then if we want to calculate the revenue for one year then it's not totally right to include all the people with apple devices as those people, who already bought their let's say phone 3 years ago, are out of the scope. So in my opinion, we should be mainly concerned with new apple devices per year and not the total set of them.
What do you think of this logic?

[@sho4459]

I was also under the impression that the question meant to involve only new downloads per year, as opposed to all downloads in each device, which could have occurred at any time and isn't expressed as an 'average per year'?

[@sunny6907]

business discription + insights

[@CatsMeow2810]

could not see the structure