Consulting Case Advise to Stay out of Market?
Has anyone ever done a consulting case in entering a new market/starting a new business where you ended up recommending that the client stay out of the market or look for a different investment? All the cases I've seen recommend that the "client" enter the market and then describe some sort of strategy, but what if the barriers were just to high? How do you come up with Alternative Investment Strategies on the spot?
Yes, a couple actually, and they were both part of summer internship interviews (with different consultancies). You don't necessarily have to come up with alternative strategies (how would you do that on the spot btw?), but you need to go carefully through the case and be clear on why the company should not enter a certain market.
Agree with Cowfoot. Market entry cases usually boil down to two factors: Is the market attractive? and Can we gain share?
If the answer to any of those questions is no then you would probably advise against entering. Usually, for the sake of the progression of the case, the market ends up being lucrative so you have to answer the second question (probably involving a Porter-esque analysis).
It's hard to give general 'alternative investment' recommendations without knowing the business or the objective of the case so definitely make sure you are certain about what the business' core capabilities are and what the client's goals are (maximum revenue/share within X years vs. profitable entry). After that, just make sure any answers or brainstorming you do is structured and you should be fine.
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