Thread: Finding weighting factor to estimate proper market data

Hello,
I have problems with some basic math. Please help us.
How to calculate an appropriate market factor combing GDP market share, industry market share and a growth rate of the specific market.

For example
GDP = 25 %
Industry market share = 40%
Growth rate = 6 %

Just multiplying the numbers does not solve the problem since the number end up quiet small. One idea might be to calculate a weighting factor based on industry market share and growth rate that can be multiplied with GDP percentage

Originally Posted by mlasmanis

Hello,
I have problems with some basic math. Please help us.
How to calculate an appropriate market factor combing GDP market share, industry market share and a growth rate of the specific market.

For example
GDP = 25 %
Industry market share = 40%
Growth rate = 6 %

Just multiplying the numbers does not solve the problem since the number end up quiet small. One idea might be to calculate a weighting factor based on industry market share and growth rate that can be multiplied with GDP percentage

What do you want to do with the number you end up with?

CB

Originally Posted by CaptainBlack

What do you want to do with the number you end up with?

CB

I want to calculate an index for a market and compare markets to each other.
Equation might look like this

m= x*GDP

X-should be weighted figure of industry market share and growth rate

BR

Originally Posted by mlasmanis

I want to calculate an index for a market and compare markets to each other.
Equation might look like this

m= x*GDP

X-should be weighted figure of industry market share and growth rate

BR

The way you ask the question it seems that such a factor is essentially arbitary and so there is no objective criteria for choosing between proposed factors.

CB

Originally Posted by CaptainBlack

The way you ask the question it seems that such a factor is essentially arbitary and so there is no objective criteria for choosing between proposed factors.

CB

Thank you very much for your help I think we just figured the problem
Best regards