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This assignment relates to the market potential estimation methods described in the article, Waheeduzzaman (2008). Amazon has decided to enter country Country A. We have two very similar countries, Country A and Country B. Use the following information and (1) estimate market potential for Amazon in Country A using Chain Ratio Method and Method of Analogy, and, (2) comment on the difference in estimation.

  1. Number of households for Country A = 40 million.
  2. Number of households for Country B = 36 million.
  3. Percentage of households subscribing to eBay.com in Country B = 22%
  4. Percentage of households having Internet in Country A = 45%
  5. Literacy rate in Country A = 97%
  6. Percentage of households with substantial purchasing power in Country A = 71%
  7. No more than 350 words
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