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Home appliances in Saudi Arabia: size and share by segment
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
The home appliance market in Saudi Arabia has three segments: premium (SAR 400 million, our share 30 percent), mid-range (SAR 800 million, our share 10 percent), and budget (SAR 800 million, our share 5 percent). What are our sales and overall share?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Our sales = sum over segments of segment size x our share
- Sales in each segment
- Total sales and overall share
Exhibit 1
Reveal to candidate: when they ask for this data, say "Open Exhibit 1" (they press "Show exhibit 1" on their screen).
| Segment | Segment size | Our share |
|---|---|---|
| Premium | 400 | 30% |
| Mid-range | 800 | 10% |
| Budget | 800 | 5% |
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Premium sales
What a strong candidate does: 400 times 30 percent.
Premium sales (SAR millions): 400 × 0.3 = 120
Step 2: Mid-range sales
What a strong candidate does: 800 times 10 percent.
Mid-range sales (SAR millions): 800 × 0.1 = 80
Step 3: Budget sales
What a strong candidate does: 800 times 5 percent.
Budget sales (SAR millions): 800 × 0.05 = 40
Step 4: Overall share
What a strong candidate does: Total sales 240 out of a market of 2,000.
Overall share (percent): (120 + 80 + 40) ÷ (400 + 800 + 800) × 100 = 12
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
We should focus growth on the mid-range and budget segments, because they hold 80 percent of the market but give us only SAR 120 million of our SAR 240 million in sales. First, our overall share is only 12 percent, and premium, at a 30 percent share, already gives half our sales. Second, one point of share in mid-range is worth SAR 8 million, twice a point in premium. The risk is that moving into cheaper segments weakens the premium brand. As a next step, find out why our mid-range share is only 10 percent: product, price or distribution.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
Total
0 out of 25
Score all five criteria to see the band and the feedback template.