Hi, I am going through a few books on consulting and one thing which seems to be given a lot of importance is market sizing. What is the importance of this? It seems to me that unless it is a new product; existing competitors, long term contracts, monopolies etc would make this result unreliable at best and misleading. Can someone help me understand this?

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I think you’re confusing market size with addressable market. Market size is the total spend for a product or service which doesn’t change with competitive dynamics, only macroeconomic factors or industry shifts. Addressable market is affected by competitive dynamics, and you’ll build in assumptions to address things like existing competitive strength, wallet share, etc.

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