If you are looking at market entry in say Germany and want to find ways to increase profits for this new venture, would suggesting exploring nearby markets (other EU countries) be outside the scope of the brainstorming exercise? Or is this ok to mention (along with other more obvious ways of increasing profits from the German market)
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Hi there,
It really depends on the case and how it's worded. If the case says "We're entering Germany and need to increase profits there", I wouldn't go outside of that directive (i.e. don't "panic" and ignore the question!). But, if they're saying "We're looking to increase our profits and as part of that we're looking at Germany", then yes you can look at other EU markets. Make sure though that this fits within the objective (as in, comparing Germany to other options).
Hey there,
I agree with Ian to a certain extend. You need to focus on answering the question (grow within Germany or just grow in general).
However, even in the first case, when the interviewer asks you how to grow in Germany, you could add one additional top-level bucket that will score you creativity points, especially in a McKinsey interview, by extending the scope a bit.
For instance, you could add the bucket ''grow in nearby markets such as Austria or Switzerland'', why?
- same language (product, customer service, etc.)
- similar income levels
- similar customer preferences
- similar logistics challenges (going from Munich to Vienna is shorter than from Munich to Berlin for instance)
Cheers,
Florian
Hi there,
I agree with Ian, it depends on the prompt.
In general, if they say they are just interested in Germany as a market, then you should look just at that market. If you find Germany is not suitable to increase profits, you may then refer to other markets in the next steps as possible options.
If the prompt is not clear on this, you can ask a clarifying question accordingly.
Best,
Francesco
