Market Entry And Profitability Interview | Consulting Case Interview Prep | Insider Gyaan (Hindi)
Summary
TLDRIn this Insider Gan video, the host, an IIT Delhi and ISP Hyderabad alumnus with a decade of corporate experience, guides viewers through a case study on a chemical manufacturing company facing sales decline due to new regulations. The client seeks diversification to achieve faster growth than the industry's projected 3%. The host suggests a structured approach to identify potential industries for diversification, evaluate them using a market entry framework, and decide on entry strategies such as acquisitions or partnerships. The focus is on the thought process rather than specific industry recommendations, aiming to help viewers understand how to tackle similar business challenges.
Takeaways
- 🎓 The speaker is an IIT Delhi and ISB Hyderabad graduate with 10 years of corporate experience, sharing content on case studies, MBA, Excel, and more.
- 📚 The channel focuses on management consulting and solving 'With Me' case studies, encouraging viewers to subscribe for related educational content.
- 🤔 The case study involves a chemical manufacturing company looking to diversify due to new waste disposal regulations and a predicted slow industry growth.
- 📉 The client aims to grow faster than the industry's 3% growth rate by diversifying while maintaining its current business.
- 🔍 The speaker emphasizes the importance of understanding the client's objectives, which in this case is to diversify for growth.
- 🛠 The framework for solving the case includes identifying potential industries for diversification, recommending one or two industries, and suggesting entry strategies.
- 🧼 Understanding the company's current product lines is crucial to find synergies with new industries, such as different types of cleaning chemicals.
- 🏢 Analyzing the customer segments and competitors can provide insights into potential industries and needs for diversification.
- 📈 Filtering industries based on growth rates above 10% helps narrow down the list to those that align with the client's growth objectives.
- 💼 The market entry framework assesses industry attractiveness, entry barriers, competition, substitute threats, and supplier bargaining power.
- 🔄 Entry strategies for new industries could include acquisition, partnerships, or going solo, depending on the company's capabilities and resources.
- 📝 The main goal is to demonstrate a detailed framework and thought process to the interviewer rather than providing exact industry recommendations.
Q & A
What is the primary focus of the Insider Gan channel?
-The Insider Gan channel focuses on sharing content related to corporate experience, case studies, MBA-related topics, educational videos on Excel, and management consulting.
What is the main issue faced by the client in the case study?
-The client, a chemical manufacturing and selling company, is facing a significant drop in sales due to new waste disposal regulations and a predicted slow industry growth rate of only 3% in the next 10 years.
What is the client's objective in this case study?
-The client aims to diversify their business while keeping their current operations intact, in order to achieve a growth rate faster than the predicted industry growth of 3%.
What is the recommended approach to identifying potential industries for the client's diversification?
-The approach involves understanding the client's current products, identifying customer segments, examining competitors, and using a market entry framework to assess the attractiveness and barriers of potential industries.
How can the client leverage their current customer base for diversification?
-The client can explore additional needs of their current customers and cater to those needs, potentially entering industries that are synergistic with their existing cleaning chemical products.
What is the significance of examining competitors in the diversification process?
-Examining competitors can provide insights into potential industries that might have synergies, as larger conglomerates often have multiple product lines and may be entering fields that could be relevant for the client.
What criteria should be used to narrow down the list of potential industries for diversification?
-The criteria include industries with growth rates above 10%, low entry barriers, competitive landscape, threat of substitutes, and supplier bargaining power.
How can the client enter the new industries identified for diversification?
-The client can enter new industries through acquisitions, partnerships, or by developing their own capabilities, such as manufacturing plants, if they have the necessary resources and skills.
What is the importance of a detailed framework in solving case studies like this one?
-A detailed framework is crucial as it allows the consultant to walk the interviewer through their thought process, demonstrating their analytical skills and ability to structure a solution effectively.
How does the presenter encourage viewer engagement with the content?
-The presenter encourages viewers to subscribe to the channel, like the video, and leave comments to indicate whether the case study videos are helpful, which will influence the continuation or discontinuation of such content.
What is the nature of the case study presented in the video?
-The case study is qualitative, focusing on the thought process and framework for solving a business problem, rather than quantitative analysis.
Outlines
📚 Introduction to Insider Gan and Case Study Approach
The speaker introduces Insider Gan, a platform where they share insights from their corporate experience over the last decade, particularly focusing on case studies, MBA-related content, and educational videos on Excel. They invite viewers to subscribe to the channel if they are interested in management consulting and solving case studies. The speaker emphasizes the importance of engaging with the content, encouraging viewers to attempt solving the case study presented before revealing the solution, and to share their own methods if they differ or are superior.
🚀 Diversification Strategy for a Chemical Company
The case study involves a chemical manufacturing company facing a decline in sales due to new waste disposal regulations and a predicted slow industry growth. The company seeks to diversify to achieve a faster growth rate while maintaining its current business. The speaker outlines the problem statement and suggests a structured approach to identify potential industries for diversification. They recommend understanding the company's product lines, customer segments, and competitors to generate a list of industries. The process involves filtering industries based on growth potential and analyzing market entry barriers, competitive intensity, and the threat of substitutes.
🛠 Framework for Industry Selection and Entry Strategy
The speaker continues the case study by detailing a framework for selecting industries and crafting an entry strategy. They suggest narrowing down the list of potential industries to those with growth rates above 10 percent and evaluating them using a market entry framework that considers attractiveness, entry barriers, competition, and supplier power. The final step involves determining the mode of entry into the chosen industries, which could be through acquisition, partnership, or establishing a new business unit. The speaker emphasizes the importance of demonstrating a detailed thought process and framework to the interviewer rather than just providing industry recommendations.
Mindmap
Keywords
💡Insider Gan
💡IIT Delhi
💡ISP Hyderabad
💡Case Studies
💡Management Consulting
💡Diversification
💡Waste Disposal Regulations
💡Market Research
💡Growth Rate
💡Market Entry Framework
💡Acquisition
💡Partnership
Highlights
Introduction to Insider Gan, a channel sharing corporate experience, case studies, and educational content.
Encouragement to subscribe for content on case studies, MBA, and Excel.
Focus on solving 'With Me' cases in the management consulting field.
Invitation for viewers to try solving the case problem before the solution is revealed.
Problem statement: A chemical manufacturing and selling company seeks diversification due to sales drop and new regulations.
Objective to grow at a faster rate than the industry's expected 3% growth in the next 10 years.
Emphasis on the need for a structured approach to identify potential industries for diversification.
Importance of understanding the client's current products and their applications.
Suggestion to leverage existing customer segments to identify new industry opportunities.
Analysis of competitors and conglomerates to identify potential industries for diversification.
Step-by-step framework for narrowing down potential industries to one or two recommendations.
Use of market entry framework to assess the attractiveness and barriers of potential industries.
Consideration of competitive landscape, substitute threats, and supplier bargaining power in industry analysis.
Discussion on different entry strategies such as acquisition, partnerships, or independent entry.
Emphasis on the importance of capabilities and synergies in deciding the mode of entry into new industries.
Highlighting the qualitative nature of the case and the need for a detailed framework rather than exact recommendations.
Call to action for feedback on the usefulness of the case study videos.
Closing remarks and anticipation for the next video in the series.
Transcripts
let's do another solve for case study
with me
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hi everyone welcome to Insider Gan
miranam Sami hair I am an IIT Delhi and
ISP Hyderabad grad and on this channel I
share a lot about my last 10 years of
corporate experience I share a lot of
content on case studies MBA related
things educational videos on Excel Etc
so if any of those things interest you
please consider subscribing to the
channel
management consulting field
and just based on that I do a lot of
solve With Me cases on this channel
over
yeah I should do more because
so that's what I'm going to do today
again I have my notes and a case problem
with me what I want you guys to do is
take down the problem statement when I'm
stating it down thorasa pause low and
before I share what the solution is
going to be try to solve bits and pieces
yourself and then see if you align with
what I have to say if you don't align
that's okay as well
if you think you have a better way of
solving then of course leave them in the
comments so that I can know about it
others can know about it as well so
the problem statement of today's case is
our client is a chemical manufacturing
and selling company recently sales have
dropped massively because of new waste
disposal regulations
also market research has found that the
industry will only grow at three percent
in the next 10 years so our client
basically wants to diversify while
keeping its current business intact
because they want to grow at a faster
rate so what is the advice that you will
give to him Jessica problem statement
s
diversification companies
you have to literally boil the ocean to
come up with a list of companies so I
think one thing that you need to realize
here is to exact company exact
Industries
on the contrary you need to walk him or
her through your approach so that you
can zero down on the final list of
industries that your client should go
for diversification
that it is a market entry case
which I've shared earlier in one of my
videos so I'm going to link it up here
third thing to note is
open-ended questions
after you have summarized the case to
the recruiter is what all are the
objectives of the client is it just to
grow at a faster rate than three percent
or if there are other considerations
like profitability or breaking out into
new customer segments Etc in this case
when you ask the question the recruiter
says that the final objective is to just
diversify for growth and your growth
rate expected a company who had ten
percent annual and because client Key
current Industries
high growth industries
so now moving to the framework or how
you are going to structure it is
number one is identifying the list of
industries that you will recommend the
client can potentially consider entering
into for diversification number two is
to one or two industries which you are
actually going to recommend to the
client and number three is you are going
to recommend how to enter those one or
two industries
what are the different ways that the
client can enter into those new
Industries step number one is to find a
list of the industries
number one is understand the products of
your company that it has currently
cleaning chemicals to produce but
cleaning chemicals for what is it for
kitchen is it for bathroom is it for
glass is it for everything in general is
it for your clothes for your utensils so
once you get to know product lines exist
you can try to find a few other
Industries
but still it's going to be within the
same cleaning family so that is one way
you can do it by looking at the products
number two is also you can try and first
understand the customer segments that
you have
needs for your same customer segment and
then try to zero down the industries
based on current customer care needs
because your current customers have
already customers
so why not use the same customer base to
meet some of their additional cleaning
requirements or non-cleaning synergistic
requirements as well
one of the natural needs hongi may be
cleaning equipment right
antiseptic kitchen cleaning
up this
who are responsible for a huge chunk of
your revenue and do you want to
understand what their additional needs
are and then try to cater to some of
those needs Jessica cleaning agents the
manufacturing companies
to find out more Industries is looking
at your company so who are the other
competitors who are producing cleaning
agents and potentially ones who are
bigger conglomerates because bigger
conglomerates don't just have one
product line but they have multiple
product lives
and accordingly you can identify you get
you can get a few ideas where your
competitors are getting into and
obviously if your competitors are
getting into some of those fields it
naturally means that there could be some
synergies in those fields and that is
why they are entering there so those are
also potentially some of the industries
that you can consider and maybe after
step one you come up with a list of 10
Industries now step two is for you to
zero down from the 10 in streets to one
or two industries which you can actually
recommend to the clients
next five to ten years
and this is important for you to know
because if you remember the major
objective is for your client to grow at
a much faster growth rate so any company
with above 10 percent growth rate are
the ones you are going to include
firstly filtered
down five just by using that filter next
you are going to use the typical Market
entry framework to identify the
attractiveness of each of those
Industries for your client and is
industry entry barrier can be regulated
patients or it can be cost of capital
cost industry uh
that can also be an entry barrier for
you secondly you also want to look at
how competitive the industry is right
now if it is already very competitive
then your margins will be much lower so
do you really want to get into a very
competitive market other things are is
there a threat for any substitute
products in that market are how are the
suppliers do the suppliers hold a lot of
bargaining power or are they okay so
those are the things which make up the
market entry framework and the market
entry framework use
to the two or three Industries which the
which you will recommend the client to
enter into now the last thing that you
want to identify analyze is how do you
enter any of those Industries
acquisition you can go and if you have
enough cash on your balance sheet then
you can just acquire a company who is
doing the same things that you want to
enter into or you can enter into a
partnership with a company
or distribution Channel then you will
likely look for a partner who can help
you manufacture the core product of the
industry you want to get it and lastly
of course you can do everything on your
own and when you try to do everything on
your own it is important to analyze
whether you have the capabilities or not
capabilities if we want to do everything
on your own then
synergies
industry or current industry
manufacturers cleaning agent OC
manufacturing plants
that is a very strong uh
manufacturing plants
and I think again I want to emphasize
that the main motive of this case is not
for you to come up with exact
recommendations of Industries but to
come up with a very very detailed
framework and you walk the interviewer
through it through all the thinking
process that you have so that he or she
can get a glimpse into your process and
finally you can come up with a like a
recommendation as you also saw that this
case was very very qualitative so as a
cases
which was on Harley Davidson that was a
bit of quantitative case and this one is
fully qualitative cases
so that's about it hope you found this
helpful again
how I can help you more in this regard
because a lot of you don't have a
repository of cases and if you like this
video please hit the like button and
subscribe to the channel I am trying to
see the response of these case study
videos so just based on that I'll
continue or discontinue making more of
these videos so please commentary
indicate that these videos are helpful
and that's about it I'm going to see you
in the next one till then bye
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