Economic consulting case interviews are less common for most consulting firms. These case interviews are typically used by consulting firms with a strong economic consulting practice, which are often boutique or specialist firms.
Nevertheless, solving economic consulting cases use many of the same skillsets as solving other types of cases like market entry, profitability, etc. However the main difference would be the increased depth of the economic theories involved along with a deeper quantitative analysis component.
Clarifying the position of the client
When starting of with the case interview, the first thing to do is to clarify the position of the client. Ensure you properly understand the problem the client is facing.
Structure your analysis
The next step is to structure your analysis, typically as a cost and benefits analysis. Economic consulting cases are more focused on valuation of an answer rather than a strategic approach in reaching an answer.
Cost and benefits analysis
In a typical cost and benefits analysis you would take into account the following:
Benefits:
- Economies of scale – costs of production
- Better quality of services
- More jobs
Harms:
- Monopoly power – consumer pricing
- Loss of jobs
- Price fixing
After you have listed the costs and benefits for the particular client situation, the next step is to analyze the data and figures available.
Data considerations
When you have asked for the figures, note the following:
- Factors that might have impact on prices such as costs, quality, macroeconomic conditions, and availability of substitutes
- Relevant other factors
- Profit margins
Once you have taken these into account you will want to run estimates on pricing and impact to the client.
Finally, you will summarize your findings and phrase your arguments with the data to back them up.
About Hazaosha:
PrepareConsult is a platform to practice the consulting case interview with AI and peers. PrepareConsult is founded by Milad Mohammadi and Sahhas Nathella.
Milad Mohammadi – 7+ years of experience in consulting and professional services with experience across North America and Europe.
Sahhas Nathella – 5+ years of experience in consulting and professional services with strong experience in complex digital transformations.
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