Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Vlad

97% Recommendation Rate

404 Meetings

11,346 Q&A Upvotes

USD 239 / Coaching

3

I need help structuring issue trees. Can someone give a concrete example of main buckets and bullet points for mkt entry

3 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Vlad

97% Recommendation Rate

404 Meetings

11,346 Q&A Upvotes

USD 239 / Coaching

Hi,

Always start with clarifying an objective:

  1. What are we going to achieve on the market and what is the timeline?
  2. What are our business model and revenue streams now in the current market
  3. Are we going to enter organically or non-organically?

Then I would use the following structure, but will modify it depending on the objective / context / industry:

Market

  • Size
  • Growth rates
  • Profitability
  • Segments and growth rates
  • Distribution channels
  • Bareers (regulation)

Competition

  • Market shares of competitors and their segments (see the next point)
  • Concentration / fragmentation (A fragmented market with lots of small players is less mature and easier to enter from a scratch. Concentrated market is hard to enter but has potential acquisition targets)
  • Unit economics of the players (Margins, relative cost position)
  • Key capabilities of the players (e.g. suppliers, assets, IP, etc)
  • Previous / projected entrants

Company (If the case says you have the company that operates in a different / adjacent market)

  • Your current capabilities (e.g. suppliers, assets, IP, etc)
  • Capital availability
  • Brand
  • Previous experience in entering the markets

Entry strategy

  • Are we achieving our objective?
  • The need for investments
  • Time to enter
  • Branding (Do we keep an existing brand / do sub-brand if it is the new segment or create a new brand?)
  • The existence of acquisition / licensing / JV targets if relevant
  • Risks

Good luck!

Hi,

Always start with clarifying an objective:

  1. What are we going to achieve on the market and what is the timeline?
  2. What are our business model and revenue streams now in the current market
  3. Are we going to enter organically or non-organically?

Then I would use the following structure, but will modify it depending on the objective / context / industry:

Market

  • Size
  • Growth rates
  • Profitability
  • Segments and growth rates
  • Distribution channels
  • Bareers (regulation)

Competition

  • Market shares of competitors and their segments (see the next point)
  • Concentration / fragmentation (A fragmented market with lots of small players is less mature and easier to enter from a scratch. Concentrated market is hard to enter but has potential acquisition targets)
  • Unit economics of the players (Margins, relative cost position)
  • Key capabilities of the players (e.g. suppliers, assets, IP, etc)
  • Previous / projected entrants

Company (If the case says you have the company that operates in a different / adjacent market)

  • Your current capabilities (e.g. suppliers, assets, IP, etc)
  • Capital availability
  • Brand
  • Previous experience in entering the markets

Entry strategy

  • Are we achieving our objective?
  • The need for investments
  • Time to enter
  • Branding (Do we keep an existing brand / do sub-brand if it is the new segment or create a new brand?)
  • The existence of acquisition / licensing / JV targets if relevant
  • Risks

Good luck!

Book a coaching with Sidi

99% Recommendation Rate

423 Meetings

4,082 Q&A Upvotes

USD 449 / Coaching

Hi Alexandra!

I believe you are not thinking in the right way here. The way you think about strategic business decisions (such as whether to enter a market) is not by defining "buckets" to explore. So the following is very important to understand:

  • Structuring a case does NOT mean to show the interviewer what you are going to look into!
  • Structuring a case means to show the interviewer how you are going to answer the precise question asked by the client!

Hence, a structure to approach a case should first and foremost be rooted in the actual question that you need to address. From there, you should define the criterion to answer this question (precondition for this is to clarify the objective beforehand!), and build a corresponding value driver tree with branches and sub branches. All the elements that are usually refered to as "buckets" (market structure, market dynamics, customer preferences, target company operations/capabilities, etc.) should be mapped to the different sub branches of your value driver tree. This is true, regardless of whether you are looking at a market entry scenario, or an M&A case, or capacity expansion, or new product launch, etc. etc.

The crucial point is that, thereby, you create a rigorous thinking frame which organizes all relevant elements into a structure by which you can link the analysis of every element back to the core question you need to answer by means of logic.

Unfortunately, no case books are revealing this to candidates, creating the illusion to candidates that "learning frameworks" is an acceptable approach towards cases.

Cheers, Sidi

Hi Alexandra!

I believe you are not thinking in the right way here. The way you think about strategic business decisions (such as whether to enter a market) is not by defining "buckets" to explore. So the following is very important to understand:

  • Structuring a case does NOT mean to show the interviewer what you are going to look into!
  • Structuring a case means to show the interviewer how you are going to answer the precise question asked by the client!

Hence, a structure to approach a case should first and foremost be rooted in the actual question that you need to address. From there, you should define the criterion to answer this question (precondition for this is to clarify the objective beforehand!), and build a corresponding value driver tree with branches and sub branches. All the elements that are usually refered to as "buckets" (market structure, market dynamics, customer preferences, target company operations/capabilities, etc.) should be mapped to the different sub branches of your value driver tree. This is true, regardless of whether you are looking at a market entry scenario, or an M&A case, or capacity expansion, or new product launch, etc. etc.

The crucial point is that, thereby, you create a rigorous thinking frame which organizes all relevant elements into a structure by which you can link the analysis of every element back to the core question you need to answer by means of logic.

Unfortunately, no case books are revealing this to candidates, creating the illusion to candidates that "learning frameworks" is an acceptable approach towards cases.

Cheers, Sidi

(edited)

Hi Sidi, Thank you for your response. I understand what you are saying but I would be verh greatful if you could give me an example of how to structure a case (ie in terms of what you present to the interviewer) since I feel like there are so many conflicting opinions here. Best, Alexandra — Anonymous on Feb 05, 2019 (edited)

. — Anonymous on Feb 05, 2019 (edited)

I'm afraid this can be hardly done in a comment. This is the core of what I teach my mentees in the course of the first two coaching sessions. It requires very careful explanation and illustration. — Sidi on Feb 05, 2019

Book a coaching with Francesco

100% Recommendation Rate

3,271 Meetings

11,806 Q&A Upvotes

USD 429 / Coaching

Hi Alexandra,

this is how I would recommend structuring a market entry analysis:

1) GOAL CLARIFICATION. It is always good to start with the end in mind – thus what is the specific reason why you want to enter the market? Is it revenues, profits, specific synergies or something else?

2) INDUSTRY. There are three macro variables here.

  1. Barriers to entry. This includes regulation or technology requirements.
  2. Key industry players. This includes:
    • Customers segments
    • Competitors concentration
    • Occasionally for some cases: suppliers (if they have market power) and substitutes (if competitors are weak)
  3. Key industry numbers. This includes for the relevant customer segments the analysis for the following elements:
    • Growth of the market/segment
    • Size of the market/segment

You should present this area connecting with the goal, and not purely listing the elements to analyze as if it was a laundry list. The best way to do so is explaining how a certain variable will help you to achieve your goal. Eg, if your goal is to increase revenues, don’t simply say “I want to look at growth, size”, rather “I want to look at growth and size – this will tell me if the market has the potential to provide enough revenues for our client.”

3) BEST WAY TO ENTER. Once you know the industry is attractive, you should consider the entry options.

  • Which are the possible ways to enter the market? Usually you should consider (i) starting from scratch; (ii) M&A; (iii) Joint Venture or licensing
  • Which option meets better our capabilities to enter the market? Each specific way to enter will require some different capabilities. If you start from scratch you may need skilled people in all the phases of the value chain; if you buy another company you may need fewer people, but more upfront capital, etc.

4) COMPANY - TARGET OBJECTIVE FEASIBILITY. Once you verified the industry is attractive and you have ways to enter, you can move to check the fit between the client and the selected industry.

  • Are there positive or negative synergies the client can develop in that industry?
  • Can our specific client reach its objective in the selected market (eg profits, revenues, market share, etc)?

In the second point, you will probably have to go through a profitability/revenue/cost framework, to calculate the effective result.

5) RISKS AND NEXT STEPS. What are the major elements that we should further analyze based on the previous points (eg regulator decision, opportunity cost of not entering in other markets, potential wrong pricing in the new market, etc)?

Hope this helps,

Francesco

Hi Alexandra,

this is how I would recommend structuring a market entry analysis:

1) GOAL CLARIFICATION. It is always good to start with the end in mind – thus what is the specific reason why you want to enter the market? Is it revenues, profits, specific synergies or something else?

2) INDUSTRY. There are three macro variables here.

  1. Barriers to entry. This includes regulation or technology requirements.
  2. Key industry players. This includes:
    • Customers segments
    • Competitors concentration
    • Occasionally for some cases: suppliers (if they have market power) and substitutes (if competitors are weak)
  3. Key industry numbers. This includes for the relevant customer segments the analysis for the following elements:
    • Growth of the market/segment
    • Size of the market/segment

You should present this area connecting with the goal, and not purely listing the elements to analyze as if it was a laundry list. The best way to do so is explaining how a certain variable will help you to achieve your goal. Eg, if your goal is to increase revenues, don’t simply say “I want to look at growth, size”, rather “I want to look at growth and size – this will tell me if the market has the potential to provide enough revenues for our client.”

3) BEST WAY TO ENTER. Once you know the industry is attractive, you should consider the entry options.

  • Which are the possible ways to enter the market? Usually you should consider (i) starting from scratch; (ii) M&A; (iii) Joint Venture or licensing
  • Which option meets better our capabilities to enter the market? Each specific way to enter will require some different capabilities. If you start from scratch you may need skilled people in all the phases of the value chain; if you buy another company you may need fewer people, but more upfront capital, etc.

4) COMPANY - TARGET OBJECTIVE FEASIBILITY. Once you verified the industry is attractive and you have ways to enter, you can move to check the fit between the client and the selected industry.

  • Are there positive or negative synergies the client can develop in that industry?
  • Can our specific client reach its objective in the selected market (eg profits, revenues, market share, etc)?

In the second point, you will probably have to go through a profitability/revenue/cost framework, to calculate the effective result.

5) RISKS AND NEXT STEPS. What are the major elements that we should further analyze based on the previous points (eg regulator decision, opportunity cost of not entering in other markets, potential wrong pricing in the new market, etc)?

Hope this helps,

Francesco

Regarding Industry bucket, how would you use information related to customer segments? It comes to me as less intuitive than market size or growth. Could you give an example? — Serdar on Feb 05, 2019

Hi Serdar, knowing the customer segments helps to understand which is the real opportunity available in the industry. It is unlikely that what the client produces will fit the whole industry – most likely it aims to target a specific demographic/type of customer. The segmentation allows to understand which are the different types of customers present and therefore the real potential available in that market for the particular product or service of the client. Best, Francesco — Francesco on Feb 10, 2019

Related BootCamp article(s)

Interviewer-Led vs Candidate-Led cases

Case Interviews can be led by the candidate or by the interviewer: In Candidate-led cases the main challenge is the structure. In Interviewer-led cases the main challenge is to adapt quickly

Related case(s)

Bain case: Asian lubricants producer

Solved 153.2k times
Bain case: Asian lubricants producer LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). According to preliminary examinations, further growth potentials in the Asian core market are rather limited. Thus LubricantsCo would like to investigate options to internationalize in the passenger car business – also outside the premium segment which is given priority. Therefore your consulting firm was instructed to elaborate a market entry strategy for the European market.  
4.6 5 29325
| Rating: (4.6 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Bain Case: Old Winery

Solved 65.9k times
Bain Case: Old Winery You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, only ¼ of the harvest is made into wine by the winery itself; the rest is sold. Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand , the demand for the “Old Winery” wine is currently rather low. You do not intent to run the winery operatively, given your limited knowledge of wine making, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
4.4 5 1783
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

McKinsey Questions

Solved 38.9k times
McKinsey Questions Tell me of a situation where you had an opinion and no one seemed to agree with you. What was your goal when you decided to join university / work / clubs / a sports team? Did you have a goal that you were not able to reach? What did you do? What do you want to be remembered for and how are you achieving it? What is your typical way of dealing with conflict?
4.5 5 862
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit Interview | Topics: Personal fit

Tell me of a situation where you had an opinion and no one seemed to agree with you. What was your goal when you decided to join university / work / clubs / a sports team? Did you have a goal that you were not able to reach? What did you do? What do you want to be remembered for and how are you ... Open whole case

BCG Questions

Solved 26.9k times
BCG Questions What arouses your interest when you are working / studying / doing another activity (from the CV)? Tell me of a time where you had no idea what you were doing. When did you use an uncommon approach to do something? Have you ever had responsibility for other people? Tell me of a situation where you were not the official leader.
4.5 5 212
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit Interview | Topics: Personal fit

What arouses your interest when you are working / studying / doing another activity (from the CV)? Tell me of a time where you had no idea what you were doing. When did you use an uncommon approach to do something? Have you ever had responsibility for other people? Tell me of a situation where ... Open whole case

Bain Questions

Solved 24.7k times
Bain Questions Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership skills.
4.6 5 296
| Rating: (4.6 / 5.0) |
Difficulty: Intermediate | Style: Fit Interview | Topics: Personal fit

Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership skills ... Open whole case