Market Entry- Financials / Market Growth always needed?

Question

Hello. I am working through a RocketBlocks drill and have a question regarding market entry problems. The problem statement says: "They'd like your team to help identify key areas to execute on as they enter the Brazilian market." In this scenario I assumed that they would be entering the market regardless and therefore didn't look at the financials/mkt growth (this would have been my clarifying question irl).

My question is whether we always need to look at these buckets, even if the client knows they are entering?

Thanks!

Answer 1

Hi there!

To add on top of the other insightful answers on this post, sharing a very complete case that I recently pusblished in PrepL´s library, precisely focused on the railway market entry:

https://www.preplounge.com/en/management-consulting-cases/interviewer-led-mckinsey-style/intermediate/market-entry-disrupting-the-new-york-boston-railway-industry-258

Hope it´s useful when it comes to preparing this family of cases, don´t hesitate to send me a message with any questions!

Best,

Clara

Answer 2

Hi there,

First, there's almost never an "always" in casing! Things are very much case-dependent and you have to use your business judgement!

That being said, yes, in general, when entering a market, you do need to understand the market! So, at a baseline, you do need to understand if it's big/growing (i.e. if you should even be there). Furthermore, within the market, you need to understand how different sub-markets, demographics, etc. are working in order to make a better decision!

Answer 3

Hi Anonymous,

No, there is no "always" in case interview prep and that also applies to the situation which you mentioned. The point is exactly as you mention: whenever in doubt, clarify with your interviewer in real-life interviews!

Hope that helps - if so, please be so kind to give it a thumbs-up with the green upvote button below!

Robert