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

Ian

100% Recommendation Rate

132 Meetings

9,515 Q&A Upvotes

USD 289 / Coaching

2

Why assessing 2. Company financials prior to 3. Targeted market/customer interest?

Hi Preplounge,

At the time I get a "market entry" case from my client, my primary move would not be to analyse my client company financials but rather investigate the opportunity to enter or not, and how the targeted market(s).
By putting 2. before 3., do you mean you could already close the case at stage 2. if the company financials are not sound enough or do not allow such a move?

Thanks for your comments!
Jack M.

Hi Preplounge,

At the time I get a "market entry" case from my client, my primary move would not be to analyse my client company financials but rather investigate the opportunity to enter or not, and how the targeted market(s).
By putting 2. before 3., do you mean you could already close the case at stage 2. if the company financials are not sound enough or do not allow such a move?

Thanks for your comments!
Jack M.

2 answers

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

100% Recommendation Rate

132 Meetings

9,515 Q&A Upvotes

USD 289 / Coaching

Hi Jack,

It's all about being "smart" here. Consultants both cost a lot of money and don't have much time. As such, you need to approach problems tactfully.

Think about: what is the easiest, most impactful thing to look at first? What, if the answer is "no" will tell us we don't need to move forward with any analysis (i.e. stop wasting time/money).

In this case, if you're entering a market, what's that question? Market attractiveness! It's very easy to check if the market is:

1) Large

2) Growing

3) Has good margins/easy competition.

So, market attractiveness should really be first.

Hi Jack,

It's all about being "smart" here. Consultants both cost a lot of money and don't have much time. As such, you need to approach problems tactfully.

Think about: what is the easiest, most impactful thing to look at first? What, if the answer is "no" will tell us we don't need to move forward with any analysis (i.e. stop wasting time/money).

In this case, if you're entering a market, what's that question? Market attractiveness! It's very easy to check if the market is:

1) Large

2) Growing

3) Has good margins/easy competition.

So, market attractiveness should really be first.

Book a coaching with Henning

100% Recommendation Rate

70 Meetings

2,487 Q&A Upvotes

USD 169 / Coaching

There is no right or wrong here on the order. In any case objectives and capabilities of the client are critial to understand whether or not the market entry makes sense.

In a real interview case you are fine in any order. I would however, see the internal questions more as a sense check or confirmation that the findings are reasonable, as the meat of the case is likely in the market characteristics. Of course exception exist and you can adjust your framework based on the context and responses you get from the interviewer.

There is no right or wrong here on the order. In any case objectives and capabilities of the client are critial to understand whether or not the market entry makes sense.

In a real interview case you are fine in any order. I would however, see the internal questions more as a sense check or confirmation that the findings are reasonable, as the meat of the case is likely in the market characteristics. Of course exception exist and you can adjust your framework based on the context and responses you get from the interviewer.

Related BootCamp article(s)

Approaching a Case

In order to get into consulting, the case study is the most important element of the interview. Here, you can learn the specific skills and concepts to solve them.

1 Q&A

4C Framework

Get an overview over a company’s customers, competition, cost and capabilities by conducting a 4 C analysis in your case interviews

Cost-Benefit Analysis

Investments or single business cases need to be evaluated based on a certain set of criteria. Since financial performance is the key criterion in most cases you need to have an idea about future financial impacts. A key tool to asses this impact is the cost-benefit analysis which is used to determine the net effect of potential revenues and costs.

1 Q&A

Market Entry

Market Entry Strategy Frameworks may be a great solution to apply in your Case Interview if your client is searching for growth alternatives.

2 Q&As

Related case(s)

Bain case: Asian lubricants producer

Solved 143.1k 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 28914
| 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

Roland Berger case: Light on!

Solved 70.4k times
Roland Berger case: Light on! LumCO, a company producing injection-molded components for lighting applications, has operated successfully in its native European market. The company wants to open up one production facility each in China and the United States and establish their own distribution network in both countries to serve as a hub for the entire region. The products LumCO manufactures can be categorized into Specialties, which are designed and produced by LumCO according to customer specifications (e.g. head lamp casing and lenses in vehicles, luminaires for design lighting applications) and Standards, which encompasses an assortment of components for multiple lighting applications for different industries (fixtures, lenses, luminaires). Based on the only slight but stable growth outlook in Europe, LumCO is eager to establish the production sites in China and the U.S. as soon as possible and also to begin to distribute their products directly. As a consultant, you are asked by the board of management to assess this plan considering your knowledge of each region and the lighting market in particular.
4.6 5 14400
| Rating: (4.6 / 5.0)

LumCO, a company producing injection-molded components for lighting applications, has operated successfully in its native European market. The company wants to open up one production facility each in China and the United States and establish their own distribution network in both countries to serve ... Open whole case

TKMC Case: Elevators

Solved 19.8k times
TKMC Case: Elevators Your customer is the market leader in the North American elevator service business. This is divided into the areas of elevator construction, elevator modernization and service. The customer has a particularly strong branch network in medium-sized cities and would now like to expand its business in bigger city centers. His next target is Manhattan and he wonders how big the potential is.
4.2 5 1332
| Rating: (4.2 / 5.0)

Your customer is the market leader in the North American elevator service business. This is divided into the areas of elevator construction, elevator modernization and service. The customer has a particularly strong branch network in medium-sized cities and would now like to expand its business in ... Open whole case

EY-Parthenon Case: Nachhaltiges Geschäftsmodell

Solved 6.5k times
EY-Parthenon Case: Nachhaltiges Geschäftsmodell Der Geschäftsführer eines in Deutschland führenden Telekommunikationsanbieters denkt über einen Einstieg in den SVoD (Subscription-Video-on-Demand)-Markt nach. Bevor er jedoch viel Zeit in die detaillierte Marktanalyse steckt, möchte er erstmal das Geschäftsmodell von Onflix, dem derzeit international führenden Anbieter, verstehen. Der Anbieter Onflix hat in den letzten Jahren den Markt revolutioniert. Der Erfolg zeigt sich vor allem in dem weltweit starken Mitgliederwachstum. Gleichzeitig hat sich Onflix zu einem der führenden Produktionsunternehmen für Filme und Serien entwickelt. Um weiterhin einen relevanten Wettbewerbsvorteil zu erhalten, schätzen Analysten, dass Onflix die Ausgaben für Content und Marketing von ca. 10 Mrd. $ in 2018 auf 15,8 Mrd. $ in 2020 steigern wird. Mit diesem starken Anstieg an Content-Ausgaben will sich Onflix gegen neue starke Wettbewerber durchsetzen.
4.5 5 158
| Rating: (4.5 / 5.0)

Der Geschäftsführer eines in Deutschland führenden Telekommunikationsanbieters denkt über einen Einstieg in den SVoD (Subscription-Video-on-Demand)-Markt nach. Bevor er jedoch viel Zeit in die detaillierte Marktanalyse steckt, möchte er erstmal das Geschäftsmodell von Onflix, dem derzeit internation ... Open whole case

MBMC Case: Exploring future Business Models on Four Wheels

Solved 3.4k times
MBMC Case: Exploring future Business Models on Four Wheels As a consultant at Mercedes-Benz Management Consulting, you are actively shaping the future of mobility. While you are contributing to decisive projects that design the future of the world’s No.1 premium carmaker, you also develop your own career path and you have the unique possibility to build your personal brand and cultivate relationships with the top management. Your client on your current project, the C-Class model series responsible, asks you to explore new profit pools and business opportunities regarding optional equipment. Initially, you shall structure and explore potential business models, and discuss necessary conditions and implications of these business models. In a next step, you shall identify possible options and prepare them for decision. And of course, the client is interested in your recommendation.
3.9 5 52
| Rating: (3.9 / 5.0)

As a consultant at Mercedes-Benz Management Consulting, you are actively shaping the future of mobility. While you are contributing to decisive projects that design the future of the world’s No.1 premium carmaker, you also develop your own career path and you have the unique possibility to build you ... Open whole case