I was given a negative feedback from my case partner in a 'Revenues Growth' case. My mistake was the following: I underestimated the impact of internal capabilities (i.e. supply-centered analysis) and only focused on a demand-centered analysis.
Instead, I should have focused on the internal assets of the company (in this case: the pipeline of pharma patents).
My question is: what aspects should I consider when I'm nudged towards a supply-centered 'Revenues Growth' analysis?
This happens, for example, when the interviewer says "we don't have any information about demand, market size, etc., nor we can guess them". This happened in my recent case :)
Aspects I would consider (using Ansoff Matrix):
- Market Penetration --> Potential addition of assets/people to penetrate a current market: - Production/R&D Level: more factories if you have capacity limits, process improvement to potentially change price/quality and have an impact on sales - Distribution Level: more distribution channels - Sales Level: more sales reps, more retails, more e-commerce effort in existing markets (depending if B2B or B2C) or brand improvement
- Market Development --> Potential addition of assets/people to penetrate a new market: - Production/R&D Level: factories in new markets - Distribution Level: extension in new markets (thru JV, M&A, subsidiary, or local distributors) - Sales Level: extension possibility in terms of more sales reps, more retails, additional e-com platform in new market
- Product Development --> Potential addition of assets/people to produce, distribute and sell a new product: - Production/R&D Level: existing or to-be-built assets for future production and sale of new products (e.g. patents in pharma, production expertise, etc.) - Distribution Level: existing or to-be-built distribution channels for these new products - Sales Level: development of more retails/sales-reps/e-com for new products or possibility to exploit current channels
- Diversification --> Potential addition of assets/people to diversify: - Production/R&D Level: existing or to-be-built assets for diversification (e.g. competences in a new market, production expertise on a potential new product for a new market) - Distribution Level: possibility of development/exploitation of existing or to-be-built distribution channels for the diversification strategy. - Sales Level: development of more retails/sales-reps/e-com for diversification or possibility to exploit current channels
Does this make sense? I know that is quite generic and it must be adapted to each specific industry/case, but I still would like to have a general opinion about the usefulness of my approach. Of course, I am looking forward to new approaches or modifications!
Thank you so much for your help!