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What is the difference between a market entry case and growth strategy case?

growth strategy market entry
New answer on Jun 23, 2022
4 Answers
1.2 k Views
Anonymous A asked on Aug 19, 2021

Hello everybody, I understand that market entry and growth strategy cases are obviously different.

However, my question is more on what are the root cause of the problems that the client faces would make a case a market entry or growth strategy?

For example on profitability, it is usually an increase in cost or decrease in revenue

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Ian
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Content Creator
replied on Aug 19, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

Growth

I can grow in the following ways:

1) Grow my existing business

2) Launch new products (in my current market)

3) Launch the same products in new markets

4) Launch new products in new markets (ill-advised)

Market Entry

Market entry occurs when pursing options 2-4 in the growth framework!

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Sidi
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updated an answer on Aug 19, 2021
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

Hi!

These are just two examples for two different families of strategic questions:

1. Strategic Go/No Go Decision (one of hundreds of possible examples is a market entry question)

2. Brainstorming question (again, one of hundreds of possible examples is a “how to grow revenue?”)

 

These are two out of 4 big families of strategic questions that exist. The categorization into “Profitability Cases”, “Market Entry Cases” etc. is complete rubbish and mirrors the lack of understanding of most established casebook authors.

 

Regarding your question: I believe you need to learn some fundamentals. Because there is no “root cause” that needs to be discussed for these questions (this would be another family of strategic questions: the DIAGNOSTIC question. Here, you are asked to find the root cause of an observed phonomenen. This is clearly not the case ofr a market entry question or growth question. Unless the growth question is enriched with a context like “Growth has slowed down, the client wants to understand why and how to stimulate growth again.”) 

 

Once you learn these fundamentals, you will have a clear view on any question within seconds. Without these fundamentals you will remain someone who has to rely on certain frameworks and hope that he has seen a similar question before.

 

Cheers, Sidi

(edited)

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Anonymous A on Aug 20, 2021

Hi Sidi, what are the 4 big families of strategic questions?

Agrim
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updated an answer on Aug 19, 2021
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting

Market entry is only one kind of growth strategy.

As Ian also mentions, you can grow by the following:

  • Growing your existing business (existing product line, existing market catchment area etc.)
  • Growing your revenue by bolting-on another business (M&A)
  • Growing your product line (market entry into new products)
  • Growing your catchment area (market entry into new regions)
  • Growing both - your product line and your catchment area

Do check out another related question from recent days - https://www.preplounge.com/en/consulting-forum/trying-to-understand-what-type-of-case-question-it-is-11140

(edited)

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Clara
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replied on Jun 23, 2022
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
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