Market entry cases are a classic case interview type focused on whether a organization should or should not enter a particular market and how.
New market considerations
The new market being considered could either be that of a product category or of a specific geography. There are many question that are brought up by such a case including:
- The profitability of the new market
- Whether or not the company is equipped to enter that new market
- Regulatory requirements to enter the new market
To start off a case like this, the first thing to focus on is understanding the potential new market and how attractive it is. If the market itself is not attractive, there is no reason to further consider the company entering it.
Questions to ask the interviewer
You would want to ask your interviewer the following types of questions:
- What is the size of the new market?
- What is it’s growth rate?
- What are the margins?
- What are the share ownerships?
Understanding your client and their capabilities
After you have developed a good view of the market, the next step is to understand your client and how capable they are of entering the market.
You would want to ask questions such as:
- What are their products and services?
- How is their cost structure?
- Would they have the right sales or distribution channels?
- What capabilities would they need?
- What barriers would they have to enter this specific market?
- What would the competitor landscape look like?
Client positioning
Once you have established the client’s positioning for entering the market, the next phase would be to see how they would cover the capabilities gap to enter the market.
- What R&D would they need?
- What talent and resource capacities are necessary?
- How would their launch strategy look like?
- How much investment would it take?
- Would the company be able to raise the funds?
Giving the recommendation
Once it is clear what capabilities are needed and the investment required, you are ready to make a recommendation.
Recap the client’s initial situation and the opportunity that exists with the potential new market. Then explain your reasoning why or why not the company should enter it along with your backing on investment required.
About PrepareConsult:
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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