The myth of demand side estimation cases is the greatest mistake taught in case books worldwide and is probably the worst technique a candidate should be using. Candidates around the world are taught that all estimation cases are market sizing cases and all market sizing cases must be done from the demand side. The problem is that not all estimation cases are market sizing cases and not all market sizing cases should be done from the demand side.

Fortunately, it is easy to fix

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2 responses to Demand Side Estimation Myth

  1. Vinay,

    This rule is explained in the video with Felix in Session 5. When supply meets demand it is almost always a demand side case since the market size is not constrained by the supply constraints.

    Michael

  2. michael.

    absolutely wonderful explanation of the most common fallacy of approach we all take using demand side.

    good logic and correct philosophy of using supply side, whose accuracy will invariably be much better than demand side.

    one question though, if supply can meet demand, should we still adopt the supply side method.

    second, are there scenarios where you prefer the use of demand side method.

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