Narrows down to estimate the potential performance

It begins with the broader market or industry data and narrows down to estimate the potential performance of a company or a product. This method assumes that a business can capture a specific share of a larger market. For example, if the total market size is projected to be ₹500 crore, and a firm expects to secure 5% of it, the forecasted revenue becomes ₹25 crore. This approach is especially useful for businesses entering a new market, scaling up quickly, or when historical internal data is limited. It allows for a high-level overview and is often faster, but it may overlook internal constraints or operational limitations, leading to overambitious projections.