Case Type: market sizing.
Consulting Firm: LEK Consulting first round summer internship interview.
Industry Coverage: consumer electronics.
Case Interview Question #00379: How many TV sets are sold each year in the United Kingdom (UK)?
Possible Answer:
To crack this market sizing case, it is best to take a “demand” based approach. The candidate might begin by categorizing UK TV sets buyers into two large segments:
1. Residential users.
2. Commercial users.
1. For the first segment: residential market, to estimate the number of TV sets bought each year the candidate could start from the UK population/households.
- There are about 60 million people in the UK.
- Assume average household size is 3 persons, then the number of UK household is ~20 million.
- Assume each household owns 1.5 TV set on average (some may own 2 TV sets), then the total number of TV sets in UK household is ~30 million.
- Assume that an average household buys a new TV set every 4 or 5 years, then the demand in one year would be 30 million / 4 = 7.5 million.
2. For commercial market, the candidate has to figure out who are the users first. So, who need TV for business purpose?
Thanks for assisting management aspirants with limited resource pool.