Imagine you have to estimate the value of nursing home market in Germany, how would you approach the questions? What structure should you use? Also willing to pay for a proper answer
Market Sizing Urgent Help Bis!!!!!
Hi,
Thanks for your question.
Below is a basic structure.
Value of nursing home market in Germany
Assuming value is Revenue - which is generally the case (market size is the total revenue generated by that entity)
Layer 1
# of nursing homes in Germany
Small 300
Medium 200
Big 100
Layer 2
average # of beds in the nursing home
Small 100
Medium 200
Big 500
Layer 3
Average length of stay for each patient 1 month
Layer 4
Revenue per month per patient
Small $10K
Medium $20K
Big $30K
Layer 5
Utilization rate by hospital (annual)
Small 90%
Medium 70%
Big 50%
Layer 6
Total revenue
Multiple layer 1 to 6 (adding numbers for small, medium and big). Note utilization rate is % of year.
Feel free to get in touch if need more help.
Thanks,
Sohini
Hi there,
- Define the outcome variable, is it the number of nursing homes, revenue generated per year, etc?
- Think about the population breakdown
- Think about what segment of the population would need nursing
- Think about how this splits between at-home care and nursing homes
- Once you find the number of people, think about the revenue you generate per person per year (what it costs to be in a nursing home)
- Multiply the two and you get to the market size (assuming we are looking at the revenue generated)
- Think about additional considerations
- Discuss your answer qualitatively
This is just a high-level approach and could/should be refined at each stage (e.g., the segments of the population that would need nursing homes, revenue paid).
Cheers,
Florian
Hi there,
I would be happy to share my thoughts on your question:
- First of all, can you please provide a proposal that I can review?
- Moreover, please keep in mind that most major strategy consulting firms have not used standalone market size estimations for a long time. While this does not mean it never happens, this type of case study question may not be very meaningful for both the candidate and interviewer, as only a few skills are being tested.
- That being said, simpler market size estimations may still be a part of a case study, for instance when estimating the revenues of the client company is required.
If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.
Best,
Hagen
Hi,
I can share one specific tip: for a question like this, assuming value = revenue, it would be helpful to think about how many people actually need nursing homes and the price of one ‘space’ in a nursing home.