Market Entry Strategy Framework Mckinsey – The case interview system or consultation system is arguably the most important component of the case interview. An outstanding case frame sets you up for success, but a poor case frame makes it difficult to solve the case.
By the end of this article, you will learn four different strategies on how to create a unique and appropriate frame for each interview.
Market Entry Strategy Framework Mckinsey
You’ll apply these strategies to learn how to create resumes for the six most common types of interviews.
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A case study framework is a simple tool that helps you structure and break down complex problems into simpler, smaller components. Think of a system as organizing different ideas and organizing them into different categories.
Let’s look at an example: Coca-Cola is a producer and marketer of soft drinks, such as soda, juice, sports drinks, and tea. They are trying to grow and are considering entering the US beer market. Should they come in?
In order to decide whether Coca-Cola should enter the beer market, you may have several questions you would like to ask:
This is not an over-the-top way of thinking about things. The questions are listed in no particular order. In addition, many of the questions are similar and can be combined.
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A management system will provide a framework for organizing these ideas and questions in an easy-to-understand way.
Note that we have condensed the list of questions we had into four main categories. These broad categories are often referred to as “buckets” in the system. Also note that we have grouped similar questions under each framework bucket.
This framework tells us what areas we need to look at in order to make a recommendation for Coca-Cola. It also clearly shows what questions we should answer in each area.
This is the power of the case study system. Simplify complex business problems into smaller, more discrete components that we can solve individually.
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So how do we design the case structure? The next section will reveal four powerful strategies for creating a unique and tailored advice system for each interview.
When you are given a job interview, you need to decide what planning strategy you want to use. Some drafting strategies will be more effective than others depending on the type of case study you have.
Therefore, choose the case planning strategy that is most convenient for you, given the type of case you are dealing with.
This case planning strategy can be used for all types of cases. This is the most time-consuming tactic, but it provides a pattern that is more relevant and unique to a personal interview.
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To create a system from scratch, ask yourself which of the 3-4 statements must be true in order to be 100% sure of your proposition. These 3-4 areas will become the buckets of your system.
Once you understand the framework buckets, ask a few questions about each bucket that you need answers to.
Let’s go back to the example of the Coca-Cola case that was asked to determine whether they should enter the beer market or not. Which of the following 3-4 statements must be true for us to recommend Coca-Cola enter the beer market?
Next, let’s add dots under each area to add more detail to our case diagram.
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To determine whether the beer market is attractive, you need to know the market size, the market growth rate and the average profit margin of the market.
To assess whether the market is competitive, we need to know who the competitors are, how much market share they have and whether they have a differentiator or competitive advantage.
In order to decide whether Coca-Cola has the skills to produce beer, we need to know if there is a skill shortage or if there are important synergies that Coca-Cola can exploit.
Finally, to determine the expected profitability of entering the market, we need to know the expected revenue, what the expected revenue is, and how long it will take Coca-Cola to break even.
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You can repeat this process for all your case interviews to create a unique case structure.
Creating a case diagram from scratch can be time-consuming. Therefore, many interview candidates make the mistake of using rote images for routine interviews.
Candidates will either use a memorized structure for each case or memorize a different structure for each type of interview.
The problem with using frame cache is that it doesn’t fit the specific case you chose. When given an atypical business problem, your area or bucket will not be completely aligned.
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Instead of creating a frame from scratch each time, this second case frame strategy provides a way to speed up the process while still creating frames that are unique and fit the case. In addition, you do not need to remember many different systems.
When given the opportunity, go through this list mentally and select the 3-5 areas that are most relevant to the occasion.
If the list doesn’t provide enough area for your image, consider and add your own ideas as an area for your image.
This strategy ensures that the elements in your frame are relevant to the subject. It also shows that you can create a one-size-fits-all system for any business problem.
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Let’s go back to the example of the Coca-Cola case that was asked to determine whether they should enter the beer market or not.
This strategy is a shortcut to creating a unique and tailored system for each business problem. Even if you and your partner use the same strategy, you may end up with different results.
That is very good. As long as the buckets in your system are important and relevant parts of the case, your case system will be better than most candidates’ systems.
You don’t need to create an entire system from scratch each time you create a unique case system. This case planning strategy can be applied to 90% of case interviews.
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For the remaining 10% of case interviews, you need to learn and use the following two case study strategies.
The first two strategies of the case structure can be applied in 90% of cases. However, some situations may require you to identify and focus on the various actors involved in managing or managing a business.
Let’s look at an example: your client is a non-profit bank. They have volunteer nurses who go to schools and businesses to collect blood from donors. They then sell this blood to hospitals, which use this blood in emergency situations when transfusions are needed. Currently, Hearts4Lives is not making a profit because they cannot collect enough blood to sell to their hospital partners. What can they do to fix it?
For multi-stakeholder cases, it’s a good idea to look at each stakeholder and determine what each can do to solve the problem.
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Similar to the previous management system strategy, some cases may require you to focus on improving or improving a particular process.
For these cases, an important part of your business plan is each major step in the process.
Let’s look at an example: Your client is a garbage disposal company that manages a group of drivers and garbage trucks that go to residential areas, collect garbage, and then dispose of the garbage in the city’s landfill. It is his duty to collect the garbage from house to house once a week. Not long ago they failed to meet this requirement and were backed up with a landfill application. What causes this problem and what should be done to solve it?
For the case of process and efficiency, it may be necessary to look at the different elements or steps of the process.
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Once you systematically list all the steps in a process, you can identify pain points or bottlenecks that cause problems and determine how to improve the process.
A profit case might look like this: “Not long ago, an electric car manufacturer was experiencing declining profits. What should they do?”
In terms of income, what is causing the decline? Is it from a decrease in sales volume? If so, is the placement focused on a specific product line, geography or customer segment?
Or is the decline due to lower prices? Do we sell products at low prices? Does sales make a difference? In other words, are we selling cheaper products and less expensive products?
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In terms of cost of living, what is driving up the cost of living? Is it from variable inflation? If so, what was the increased value?
Or the increase in the cost of living because of the increase in the cost of living? If so, what are the fixed costs that have increased?
Next, you need to understand exactly what causes the decrease in profits that you know in the previous step.
Looking at the customer, have the customer’s needs or preferences changed? Have their bad habits or behavior changed? Has his view of the company changed?
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Looking at competitors, have new players entered the market? Have existing competitors done so recently?