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a case question

Case Interview
New answer on Nov 30, 2021
7 Answers
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Anonymous A asked on Oct 05, 2021

This is a case I got from a case partner but I lost contact with him now. Can someone help me to solve this?

The client is a furniture manufacturer supplying furnitures for enterprises in India and Australia. The products are high end. Now they wanna see whether they should enter Europe market, and whether they should focus on high end or low end market.

My framework:

-market - size, trend, customer preferences, competitors and their shares

-profitability - rev, cost, investments, breakeven

-capability - financial fundings, distribution channels in Europe, labor, factory capacity

-product strategy - supply(what are our product differentiations), demand(what customer want and their willingness to pay)

(edited)

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Pedro
Expert
updated an answer on Oct 05, 2021
30% off in April 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA

Your approach has two issues. Ian pointed very well to one of them, so let me start with the other:

  1. You need to be more specific on the objective. Yes, we can assume they want something big and profitable, but we shouldn't be guessing here. The objective should be crystal clear and if possible quantified (X revenue and/or y% profit margin). How will the client decide? What is their objective? If I don't know the client's objective, howcome can I find whether or not it can be achieved?

    “Now they wanna see whether they should enter Europe market, and whether they should focus on high end or low end market.”

    If they can make 1% market share is this a good idea or not? If they can make $2 on the high end and $1 on the low end does this mean that they should enter Europe on the high end market? We have no idea. You need to clarify the objective.
     
  2. This is just a list of buckets to analyze. They may be in the right areas, but it won't be clear to the interviewer what exactly are you trying to answer and how you will decide on this business. And to be honest, it would make no difference if you were presenting the 3Cs instead with a bit of detail.

    You need to stop thinking about buckets and start thinking about “what needs to be true” for this to be a good market. Investigation areas only come after that, never before. 


Let me also add another point that is minor after the two above, but still worth mentioning. You list is not MECE. Example: you look into customer preferences on both market and product strategy; profitability is a result of market competition, your capabilities and your product strategy.

(edited)

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Agrim
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Content Creator
updated an answer on Oct 07, 2021
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting

When it comes to decision making - the framework should address the decision, and not the problem. 

Question 1: Should they enter the EU market or not?

Question 2: Should they focus on high-end or low-end?

Objective: ??? Unknown! (Profit? Market Entry? Market Dominance? Experiment? Foot-in-the-door?)

 

The ‘framework’ you are mentioning - is only a list of evaluation parameters. And it is not MECE. The questions you should be asking are these:

  1. Does this market entry make financial sense? (then check market and profitability parameters in there)
  2. Does this market entry make strategic sense? (then check if it helps achieve the objective - which is unknown right now)
  3. Does this market entry make operational sense? (then check from a capability point of view and others)
  4. Does this market entry make sense from other parameters (regulatory, feasibility, internal product strategy etc.)

Once you have your ticks and crosses as the answers to these questions - only then can you determine whether to enter or not?

(edited)

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Hagen
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Content Creator
replied on Oct 05, 2021
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years

Hi there,

This is indeed an interesting question which is probably relevant for quite a lot of users, so I am happy to provide my perspective on it:

  • Generally speaking, the content is there yet I would advise you to really think through the outcome of each aspect of your structure, i.e. there needs to be a clear insight or “piece of the puzzle” to solving the question.
  • For instance, before jumping into a proper market due diligence and profitability assessment, you might first make a qualitative assessment whether the market is attractive at all (external perspective) and whether the companies has the right capabilities to compete in the market (internal perspective).

In case you want a more detailed discussion on how to best approach any type of case study in a structured, hypothesis-driven way, please feel free to contact me directly.

I hope this helps,

Hagen

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Ian
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updated an answer on Oct 05, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

This isn't a framework.

It's a list of ideas.

You need to have a why and how to each of your buckets. What is the point of your market bucket? (Hint: To determine which one is generally more attractive as a whole).

What is the point of your profitability bucket (Hint: It really shouldn't be here if you're also going to have capability…both are about which market we will perform better in).

Fundamentally, what I need to see is what is your structured, objective-driven approach to solving this problem….put another way: How will my buckets lead me to actually answering this questions.

(edited)

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Adi
Expert
Content Creator
replied on Oct 05, 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

Post your solution here please and we can comment. Best way to learn.

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Anonymous A on Oct 05, 2021

Thank you! Posted my framework.

Antonello
Expert
Content Creator
replied on Oct 06, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi!

Why don't you post your solution here?

We might give you more accurate feedback.

Best,

Anto

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Marco-Alexander
Expert
Content Creator
updated an answer on Nov 30, 2021
Former BCG | Case author for efellows book | Experience in 6 consultancies (Stern Stewart, Capgemini, KPMG, VW Con., Hor

(edited)

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Pedro gave the best answer

Pedro

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