PRODUCT ADVISORY COUNCIL
Use the real market boundary
The method
Use the real market boundary
For local services, the relevant market is often the area in which people actually choose.
When to use it
- Local two-sided service markets.
Ask yourself
- The market is huge. Why are we struggling?
Put it into action
- Count effective supply, active demand and delivery reach within the area users can actually choose from.
- Inspect matching failures, waiting and repeat purchases by area; national totals can hide local gaps.
Keep these limits in mind
- A fixed population threshold is not a universal rule.