INORGANIC GROWTH STRATEGIES

Brainstorming? Often underestimated, but key. In this article, Cristian shows you how consultants really think – and how to prepare smartly.

In case interviews, you are often tasked with developing strategies to increase a company's revenue. It's crucial to conduct a systematic analysis to provide well-founded and actionable recommendations.Below, we’ll break down the key factors you need to consider and show you how to structure your response in a clear, effective way. Our goal is to give you a practical guide to help you ace your case interviews and build strong growth strategies. Key Factors for Revenue GrowthWhen developing growth strategies, the focus can vary. Here are some key factors to consider: ProductsProduct Mix: Analyze the product range and its life cycles.Example: A company selling clothing might expand its range to include sportswear in order to reach a broader target audience and create additional revenue streams.Market Growth: Examine the industry’s growth rate.Example: If the market for sustainable fashion is growing, a company specializing in sustainable products could increase its market share through targeted expansion.Customer Satisfaction: Consider how satisfied customers are with the products.Example: A smartphone manufacturer could gain valuable insights through regular customer satisfaction surveys and make product improvements to strengthen customer loyalty.PricingPrice Comparison: Compare prices with those of competitors.Example: An electronics manufacturer might compare its prices with those of competing brands to remain competitive and adjust pricing strategies.Price Sensitivity: Determine how sensitive customers are to price changes.Example: A luxury goods manufacturer could study how price changes affect demand for its products to optimize price adjustments and refine its pricing strategy.MarketingMarketing Strategies: Assess the effectiveness of current marketing channels.Example: An online retailer might increase its reach and boost sales through targeted social media campaigns and influencer marketing.Competitor Analysis: Analyze competitors' marketing strategies.Example: A food manufacturer could analyze competitors’ advertising strategies and stand out with innovative marketing ideas to gain market share.FinancialsAvailable Resources: Review the budget for growth initiatives.Example: A start-up might assess how much budget is available for product development and marketing to plan targeted investments in growth initiatives.Shareholder Expectations: Consider shareholders' expectations.Example: A publicly traded company might develop strategic measures to meet shareholder expectations for revenue growth and profitability, thereby strengthening investor confidence. Main Approaches to Revenue GrowthThere are two primary approaches to revenue growth: organic and inorganic.Organic Growth involves expanding distribution channels to reach new sales avenues and entering new geographic or demographic markets. This includes launching targeted marketing campaigns, optimizing existing ones, broadening product lines by introducing new products, and enhancing customer retention through stronger relationships and loyalty.Inorganic Growth focuses on mergers and acquisitions. This approach involves acquiring other companies to quickly integrate new markets or products and forming partnerships to leverage synergies and accelerate growth. Conclusion: Successful Growth Strategies for Consulting CasesIn case interviews, it's crucial to identify the right growth strategies. A detailed analysis of products, pricing, marketing activities, and financial resources will help you effectively utilize both organic and inorganic growth approaches. With a structured and well-founded approach, you can present convincing and actionable solutions. Good luck with your case interview preparation!Do you have a question about growth strategy cases that we haven't covered in the article yet? No problem! Just ask our experienced coaches in our Consulting Q&A.In our Case Library, you'll find not only case studies on growth strategy but also numerous other relevant topics such as market analysis, market entry, restructuring, and much more. Why not take a look inside? 🚀