Interesting Case Question

growth strategy
New answer on Jan 08, 2020
4 Answers
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Anonymous A asked on Jan 07, 2020

Hi community,

I had an interesting case question, no other information is provided. How would you approach?

What would you do if you own the following startup company and your main goal is to grow the whole business?

About the startup: The company mainly focuses on delivering consumer goods (basically anything that you can find in a supermarket) to your doorstep. Most of the orders are delivered by motorcycles in minutes because the company has tens of small warehouses all across the city. They have a nice app where customers put the orders and track their order status. They have recently entered the food delivery business as well.

Thanks!

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Luca
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replied on Jan 07, 2020
BCG |NASA |20+ interviews with 100% success rate| 120+ students coached |GMAT expert 780/800 score

Hello,

You can consider it as an "increasing revenues" business case. So you can decide to have an grow or to make acquisitions, first of all. If yo want to grow organizally you can decide to focus on new products/services or the ones that are already in your portfolio. In the latter case you can leverage on volumes or price. In terms of volumes, then,you can consider different approach (new customers, new geographies, new distribution channel, increasing the average sale ecc..).

Feel free to contact me if you want to discuss the whole framework for this typology of case.

Best,
Luca

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Cati
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updated an answer on Jan 07, 2020

I think like usually I would divide my structure into 1) organic growth and 2) inorganic growth and then break the two parts further down.

1) Organic Growth

Organic growth could be structured using the Ansoff Matrix and talking about the areas 1) Market Penetration, 2) Market Development, 3) Product Development and 4) Diversification. Here some thoughts (of course you could add some creative ideas in each area, read more here: https://www.preplounge.com/en/bootcamp.php/case-cracking-toolbox/structure-your-thoughts/2x2-matrices-and-the-bcg-matrix)

Market Penetration (grow in existing city with current products)

  • Can be achieved by attracting new customers (first buyers), which bought previously from competitors (stealing market share).

Market Development (new market with current products)

  • New markets could be on a regional, national or international level.

Product Development (same market (city) but new products)

  • New products do not need to be necessarily new, but can also be adaptions or updates to existing products developed using companies core competencies.

Diversification (new market and new products)

  • e.g. Horizontal diversification: products are often unrelated to current products, but have the potential to attract current customers
  • Enter into new city, country or extend to suburbs

2) Inorganic Growth

Here I think I would talk about the following ideas:

  • JV’s – e.g. partnering with other businesses e.g. delivery services, supermarket chains to extend current product line; e.g. partner with Hotels so that guests can order too
  • M&A – e.g. buying local small niche player and offer its products in our application

(edited)

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Antonello
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replied on Jan 07, 2020
McKinsey | MBA professor for consulting interviews

Hi,
you can focus on:
- selling new products (e.g. books, apparel, medicines, cigarettes)
- finding new customers (1. how can you engage more customers in the same city? 2. Enter in new cities/countries)

Best,
Antonello

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Clara
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replied on Jan 08, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

1st of all, we should clarify what "grow the whole business means":

- More operations?

- Higher profit? Or even higher revenue, cost regardless?

- International expansion?

- Arriving to more clients?

- Channel expansion?

- Product expansion?

(list goes on and on)

Once this is clear, you drill down on the desired option.

If this does not get cleared, means that the case is about brainstorming all possible options and prioritizing them for the client.

I have a similar case in my "case library" with the prioritization matrix, ping me if you want.

Hope it helps!

Cheers,

Clara

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Luca gave the best answer

Luca

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