Hello everybody, I understand that market entry and growth strategy cases are obviously different.
However, my question is more on what are the root cause of the problems that the client faces would make a case a market entry or growth strategy?
For example on profitability, it is usually an increase in cost or decrease in revenue
Hi!
These are just two examples for two different families of strategic questions:
1. Strategic Go/No Go Decision (one of hundreds of possible examples is a market entry question)
2. Brainstorming question (again, one of hundreds of possible examples is a “how to grow revenue?”)
These are two out of 4 big families of strategic questions that exist. The categorization into “Profitability Cases”, “Market Entry Cases” etc. is complete rubbish and mirrors the lack of understanding of most established casebook authors.
Regarding your question: I believe you need to learn some fundamentals. Because there is no “root cause” that needs to be discussed for these questions (this would be another family of strategic questions: the DIAGNOSTIC question. Here, you are asked to find the root cause of an observed phonomenen. This is clearly not the case ofr a market entry question or growth question. Unless the growth question is enriched with a context like “Growth has slowed down, the client wants to understand why and how to stimulate growth again.”)
Once you learn these fundamentals, you will have a clear view on any question within seconds. Without these fundamentals you will remain someone who has to rely on certain frameworks and hope that he has seen a similar question before.
Cheers, Sidi
(editiert)
Hi there,
Growth
I can grow in the following ways:
1) Grow my existing business
2) Launch new products (in my current market)
3) Launch the same products in new markets
4) Launch new products in new markets (ill-advised)
Market Entry
Market entry occurs when pursing options 2-4 in the growth framework!
Market entry is only one kind of growth strategy.
As Ian also mentions, you can grow by the following:
Do check out another related question from recent days - https://www.preplounge.com/en/consulting-forum/trying-to-understand-what-type-of-case-question-it-is-11140
(editiert)
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:
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
Hi Sidi, what are the 4 big families of strategic questions?