Case Types Flashcards
Entering a New Market (Step 1/2)
Step 1: Investigate the market to determine
whether entering the market would make good
business sense –> Assess market attractiveness
Entering a New Market (Step 2/2)
Step 2: If you decide to enter the market, you need
to figure out the best way to become a player
• Start from scratch
• Acquire an existing player
• Form a joint venture or strategic alliance with another
player
First Four Steps of Cases
- Summarize the question
- Verify the objectives
- Ask clarifying questions
- Lay out your structure
Be sure that your problem components are “MECE”
– “Mutually exclusive”: No overlaps are present between issues to be
investigated
– “Collectively exhaustive”: All potential high-level issue areas have
been covered by the first-level branches of the tree
Use trees to set up analyses
The case question serves as the root and the problem components serve as the branches
Developing a new product (FOUR steps)
– Step 1: Think about the product
– Step 2: Think about your market strategy
– Step 3: Think about your potential customers
– Step 4: Think about financing the project
Pricing Strategies (1 of 2)
Step 1: Investigate the product
Pricing Strategies (2 of 2)
– Step 2: Choose a pricing strategy
• Cost-based pricing vs. Price-based costing
Cost-based pricing:
Determining the cost of a product, choosing a
desired profit margin, and generating a sales price
Price-based costing:
Choosing a desired sales price and costing
out production to meet that sales price with a desired profit margin
• Supply and demand forces
Growth Strategies (Step 1 of 2)
– Step 1: Ask feeler questions
• Ask questions to determine the nature of growth that
your interviewer is looking for (focusing on product,
division, or the entire company)
Growth Strategies (Step 2 of 2)
– Step 2: Choose a growth strategy
• Some options are increasing sales, increasing
distribution channels, increasing product line, invest in a
major marketing campaign, diversify products/services,
or acquisition of another firm
Starting a new Business (Step 1 of 2)
Step 1: Investigate the market to make sure that
entering the market makes good business sense
Starting a new Business (Step 2 of 2)
Step 2: Look at the project from a VC’s point of view • Management team • Market and strategic plan • Distribution channels • Product • Customers • Finance
Competitive Response (Step 1 of 2)
Step 1: Ask probing questions
• What is the competitor’s new product and how does it
differ from ours?
• What has the competitor done differently?
• Have any other competitors picked up market share?
Competitive Response (Step 2 of 2)
Step 2: Choose a response action
• Examples: Acquiring the competitor or another player
in the market, merging with a competitor, copy the
competitor, hire the competitor’s top management
away, use marketing and public relations to increase
your profile
Increasing Sales (Step 1 of 2)
Step 1: Ask probing questions to gather information
about the market and our product line
Increasing Sales (Step 2 of 2)
Step 2: Determine a strategy to increase your sales
• Increase volume
• Increase revenue from each sale (make buyers buy
more)
• Increase prices
• Create seasonal balance
