Case Study
 
Based on your logical reasoning and available information, let’s calculate the turnover of new
chairs for indoor in Vietnam per year (in USD)?
 
Time for response: 30 minutes

Action steps:
1. Estimate the numbers of Vietnam’s households
2. Segment the kinds of chairs for indoor
3. Make assumption on the need of kinds of new indoor chairs per year in Vietnam
4. Find the average price of indoor chairs of all types
5. Calculate the turnover of new chairs for indoor in Vietnam per year

Step 1:
Vietnam’s population: 
The current population of Vietnam (or Viet Nam) is 98,615,930 as of Saturday, December 18,
2021, based on Worldometer elaboration of the latest United Nations data.

Source: https://www.worldometers.info/world-population/vietnam-population/

Assumption: Households of Vietnamese contain 4 people on average ⇒ 24,653,982 households

Step 2 & 3:
Assumptions Dining chairs Working chairs Chairs for 
event organizing

Chairs/ years 1 new chair/ 2 1 new chair/ 6 year/ 2,000,000 new chair/
year/ household household year

Rationale for the Fundamental High using frequency with High frequency of
above number features → different features to use → being commuted
Durable Willing to spend for high from place to place
quality ones

Number of  12,326,991 4,108,997 2,000,000

new chairs

Step 4: 
Average price of a dining chair in Vietnam: 250,000 VND → 10.88 USD
Average price of a working chair in Vietnam: 500,000 VND → 21.76 USD
Average price of a chair for event organizing in Vietnam: 200,000 VND → 8.7 USD

Step 5: 
The turnover of new chairs for indoor in Vietnam per year (in USD): 134,117,662 + 89,411,774 +
17,400,000 = 240,929,436 USD