Use Our Resources and Tools to Get Started With Your Preparation!

Learn the case interview basics, practice with 210+ cases, and benefit from extensive test materials, and interactive self-study tools.
Previous article
Next article

Market Entry Could Be a Possible Solution That May Not Be Obvious at the Beginning of a Case

Market entry problems have two variations, according to the Ansoff Matrix

  • Introduction of an existing product in a new market (market development)ge.com/en/case-interview
  • Introduction of a new product in a new market (diversification)

As you know from the Ansoff Matrix, usually growth questions require a market entry strategy for the case interview solution. “Our business model is currently stagnating. What should we do?”

Use the following five steps to approach a market entry case

1. Paraphrase and clarify the objective at the beginning (same as all other cases)

As usual, take good notes! Start with paraphrasing the problem and clarify all questions to make sure you understand the problem. Take a minute to structure your thoughts and decide the questions you want to ask based on the structure. In short, in order to have a market entry strategy, you need to:

  • Understand the company and its current market, and also the new market the company wants to enter.
  • Evaluate the financial aspects.
  • Evaluate the economic implications of entering the market. If it makes sense, decide how: Through organic (independently) or inorganic (inter-dependently)? If inorganic, then would it be through a Joint Venture or M&A?

Frameworks such as Porter's Five Forces can help you structure thoughts and systematically uncover key information. But, in an interview, avoid saying that you are using Porter's Five Forces or any other standard framework as you run the risk of portraying yourself as force-fitting a framework. 

2. Understand the client's company

Understand why the client wants to enter the new market and identify the key issue. Knowing this piece of information will be important in making the final recommendation. 

Other important information:

  • What are current revenue streams?
  • What are the client's key strengths and weaknesses? (SWOT)
  • What is the product mix? How many and what types of product lines, brands, variations of products does the company have? What is the lifecycle of each product? Also, how closely related are the current products?
  • Who are current customers, and how are they segmented?
  • What are the current distribution channels?
  • What is the client's current financial situation?

3. Understand the market of interest

Understand the market the client wants to enter and evaluate its attractiveness. Start by estimating the market size if that information is available (it is implied that you would first need to estimate market size in such cases).

Always be prepared to size the market yourself if you ask the interviewer what its size is.
  • What is its growth rate?
  • At what stage of the lifecycle is it? Emerging, Mature, Declining?
  • What are the customer segments, and what are their respective needs?
  • Is there a key technology involved? If so, how quickly is it likely to change?
  • What are current trends in the industry?
  • Who are the key players in the market? What is their market share? What are their differentiating factors?
  • What is their response to the determined key trends?
  • Are there substitute products?

4. Evaluate the financial aspects

Key questions:

  • Costs: What are barriers to market entry (i.e. investment costs)?
  • Costs: What are expected fixed and variable costs?
  • Revenues: What is the expected price of the product for and how many units are expected to be sold?
  • After how many years will the client break-even and what is the rate of return (understand that money has a different value over time)?

5. Evaluate the economic implications of entering the market

Remember you do not need to investigate all these questions, but you do need to evaluate and understand what questions are important by considering the reasons the client wants to enter the market. 

If you decide that entering a new market is a good idea, it would make sense to recommend to the client how to do it.

Entering a new market can be generally done in three key ways:

  • Start from scratch
  • Through a Joint Venture
  • Through M&A

Based on the data, if you decide that the venture is not a good idea, recommend an alternative plan (product differentiation, cost-cutting, international presence, etc.). Since you now know the company structure, the “old” and the "new" market, make sure to structure your recommendation.

  • Competitive advantage: Can you apply the same business strategy as in your current market, or do you have to adapt the product, marketing, or even sales channels to reach customers?
  • Timing: Can you lever a first-mover advantage, or would you rather let the competitors try their luck first?
  • Speed of entry: Define whether you want to test a single store or region, or whether you want to cover the entire market at once.
  • Entry mode: How much commitment are you looking at? Would it be a simple export strategy, where you can exit easily but have less control, OR a wholly owned subsidy, where investment costs are high, but you also have more control?
  • The organizational structure of the new branch: Do you want to decide centrally or leave lots of freedom to the individual manager of the country?

Once you have all your answers, synthesize them to give a recommendation based on the facts you collected. Don't forget to take another minute to structure your answer but make sure to provide your answer first and then the reasons! Check out our article about the pyramid principle for more details regarding communication. 

Key takeaways

  • Market entry cases are often hidden in other case types, such as cases involving increasing revenues of a company.
  • Look for the most critical success factors for the client.
  • When developing a market entry strategy, focus on how the new market fulfills the success factors sought by the client.
  • Make sure to lay out several different market entry strategies and evaluate those against each other.

Check out PrepLounge's market entry cases: Argentinian toy manufacturer

Find a Case Interview Partner to schedule an interview now
Previous article
Next article
Do you have questions on this article?
Contribute to our Q&A forum and ask the community your question!

Questions on This Article

Cost revenue and entry strategy

market entry
Most recent answer on Sep 11, 2020
The best answer (on Sep 11, 2020) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Sep 11, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi Abed, When answering complicated questions (i.e. strategy consulting) you can't boil the ocean and do everything at once! Therefore, you have todetermine: First - Is the market as whole attractive? Is it big? G ... (read entire answer)
2
Answers
4.9 k
Views
21
Total Upvotes
on Sep 11, 2020 on Sep 11, 2020
Last Activity

Why assessing 2. Company financials prior to 3. Targeted market/customer interest?

market entry
Most recent answer on Feb 12, 2024
The best answer (on Oct 07, 2020) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Oct 07, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi Jack, It's all about being "smart" here. Consultants both cost a lot of money and don't have much time. As such, you need to approach problems tactfully. Think about: what is the easiest, most impactful thing to ... (read entire answer)
3
Answers
2.5 k
Views
30
Total Upvotes
on Feb 12, 2024 on Feb 12, 2024
Last Activity

Market Entry case with multiple choices

market entry
Most recent answer on Apr 19, 2022
The best answer (on Apr 19, 2022) is from:
Disha
Expert
Bain & Co. 2+ years | MBA from IIM Bangalore | Here to get you started from the very basics of Case Prep
Disha
Expert
gave the best answer on Apr 19, 2022
Bain & Co. 2+ years | MBA from IIM Bangalore | Here to get you started from the very basics of Case Prep
After getting clarity on the most basic of case information, namely, kind of firm that makes up the clientele, the kind of products that the firm wishes to market, and in-turn the kind of populace that it wants to serve ... (read entire answer)
3
Answers
1.1 k
Views
28
Total Upvotes
on Apr 19, 2022 on Apr 19, 2022
Last Activity

Related Cases

As a consultant at Mercedes-Benz Management Consulting, you are actively shaping the future of mobility. While you are contributing to decisive projects that design the future of the world’s No.1 premium carmaker, you also develop your own career path and you have the unique possibility to build you ... As a consultant at Mercedes-Benz Management Consulting, you are actively shaping the future of mobility. While you are contributing to decisive projects that design the future of the world’s ... (Open whole case)
17.9k
Times solved
3.8
100+ Ratings
Intermediate
Difficulty
Company case by EY-Parthenon
Der Geschäftsführer eines in Deutschland führenden Telekommunikationsanbieters denkt über einen Einstieg in den SVoD (Subscription-Video-on-Demand)-Markt nach. Bevor er jedoch viel Zeit in die detaillierte Marktanalyse steckt, möchte er erstmal das Geschäftsmodell von Onflix, dem derzeit internation ... Der Geschäftsführer eines in Deutschland führenden Telekommunikationsanbieters denkt über einen Einstieg in den SVoD (Subscription-Video-on-Demand)-Markt nach. Bevor er jedoch viel Zeit in d ... (Open whole case)
17.7k
Times solved
4.4
200+ Ratings
Intermediate
Difficulty
Company case by RWE Consulting
RWE has reliably supplied people and companies with electricity for more than 120 years with activities around the world with a clear focus on growth. The company is pushing the energy transition to climate neutrality with focus on renewable energy sources like offshore or onshore wind as well as ph ... RWE has reliably supplied people and companies with electricity for more than 120 years with activities around the world with a clear focus on growth. The company is pushing the energy trans ... (Open whole case)
15.9k
Times solved
3.0
< 100 Ratings
Intermediate
Difficulty
Company case by CTcon
Deine Klientin ist die Besitzerin der Eisdiele TOTO in einer deutschen Großstadt. Das Geschäft läuft so gut, dass die Besitzerin eine weitere Filiale eröffnen will. Sie ist hellauf begeistert und möchte auf Nummer sichergehen. Sie fragt Dich daher: Ist das eine gute Idee? Deine Klientin ist die Besitzerin der Eisdiele TOTO in einer deutschen Großstadt. Das Geschäft läuft so gut, dass die Besitzerin eine weitere Filiale eröffnen will. Sie ist hellauf begeistert und möchte auf Nummer sichergehen. Sie fragt Dich daher: Ist das eine gute Idee? (Open whole case)
14.2k
Times solved
4.6
200+ Ratings
Intermediate
Difficulty
Company case by OC&C
Unser Kunde, Schmuck Agentur, ist ein führender europäischer Fachhändler für Accessoires und Schmuck. Der Kunde ist derzeit nur in Europa aktiv und vertreibt sowohl Premium- und Luxusprodukte, meist von europäischen Marken, als auch "Mid-Market" Produkte, die eher der hauseigenen Marke angehören. De ... Unser Kunde, Schmuck Agentur, ist ein führender europäischer Fachhändler für Accessoires und Schmuck. Der Kunde ist derzeit nur in Europa aktiv und vertreibt sowohl Premium- und Luxusprodukt ... (Open whole case)
13.5k
Times solved
4.8
< 100 Ratings
Intermediate
Difficulty
How likely are you to recommend us to a friend or fellow student?
0
1
2
3
4
5
6
7
8
9
10
0 = Not likely
10 = Very likely