Every product or service gives customers some benefit, for which they are willing to pay up to some maximum price. 6. First mover advantage, Porter's 5 Forces, SWOT, competitive advantage, bargaining power of suppliers Blue Ocean Strategy is where a company creates a completely new market space (or market category). Once you know the types of questions they ask, preparation is straightforward. Definition and brief explanation. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof) of an industry in terms of its profitability. Blue Ocean Strategy is where a company creates a completely new market space (or market category). Market Sizing Questions in Consulting Interviews – The Three Golden Rules Market Sizing Questions During Your Case Interview. Figure 3: Strategy Canvas (Example: Cirque du Soleil) The Strategy Canvas. — In this article, we’ve covered: What market entry case interview looks like, Breaking down the framework into 4 easy steps, A market entry case example, Tips on using the framework… GE McKinsey Matrix: A Multifactorial Portfolio Analysis in Corporate Strategy; Product Life Cycle: The Introduction, Growth, Maturity and Decline of a Product Category; Three Levels of Strategy: Corporate Strategy, Business Strategy and Functional Strategy; Fiedler’s Contingency Model of Leadership: Matching the Leader to the Situation GE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi business corporation to prioritize its investments among its business units. McKinsey’s strategic horizons approach defines three “horizons” intended … Porter's Five Forces Framework is a method for analysing competition of a business. Cascade Strategy describes five of the most popular business strategy frameworks that build on the concepts presented in Porter’s three-part strategy model: McKinsey’s Strategic Horizons. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. In the 1981 staff paper "Market strategy and the price-value model," Harvey Golub and Jane Henry introduce a framework designed for industries whose products have a sizable share of intangible or subjective value. Market segmentation is the process of dividing up mass markets into groups with similar needs and wants. Case interviews at management consulting firms are among the most difficult job interviews, but they are also quite predictable. At McKinsey, the salary for entry-level consultants (Analysts) ranges from $90,000 to $110,000 per year, while the figure for MBA-level/experienced Associates can go up to $233,000.Engagement Managers typically earn around $250,000, while Partners and Directors can earn up to $1,300,000. This matrix is a strategy tool that provides guidance on how a corporation should prioritize its investments among its business units, leading to three possible scenarios: invest, protect, harvest, and divest. GE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi business corporation to prioritize its investments among its business units. In our experience, the combination of a robust outside view and an improved inside one—better assessments of value propositions, capabilities, market size, competitors, market share and revenue, and costs—dramatically raises the odds of making good entry decisions. identifying what factors current players in the industry are competing on. The company entering India would be likely to follow a very different and more aggressive entry strategy if it knew for certain that its customer penetration rates would be closer to 30% than to 10%. Market segmentation is the process of dividing up mass markets into groups with similar needs and wants. The Strategy Canvas serves two purposes: The first one is to capture the current state of play in the known market space i.e. Key elements to consider include: timing of market entry (now vs. delay), speed of market entry (test region vs. whole country), opportunity to buy competitor or do a JV, management approach (control from HQ vs. decentralise), etc. Relevant factors often include the situation of the market being entered, the state of the competition, and the process & strategy of making the first entrance into the market. Read all CFI articles and resources on business and corporate strategy, important concepts for financial analysts to incorporate in their financial modeling and analysis. Pricing case framework ↑ The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets. Every product or service gives customers some benefit, for which they are willing to pay up to some maximum price. In our experience, the combination of a robust outside view and an improved inside one—better assessments of value propositions, capabilities, market size, competitors, market share and revenue, and costs—dramatically raises the odds of making good entry decisions. The cash cows are the most stable for any business and hence the strategy generally includes retention of the market share. This McKinsey article: Beating the Odds in Market Entry is a great resource for those who want to dig deeper on this subject. Entry strategy: How should the client go about entering the new market? Market Sizing Questions in Consulting Interviews – The Three Golden Rules Market Sizing Questions During Your Case Interview. Corporate and business strategy guides. To understand red ocean strategy let us begin by defining blue ocean strategy. Pricing case framework ↑ It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof) of an industry in terms of its profitability. This new market space is created by launching new offerings, with the aim being to make the competition irrelevant so that an organization can grow, uncontested, at least in the beginning. The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets. This McKinsey article: Beating the Odds in Market Entry is a great resource for those who want to dig deeper on this subject. Market Sizing can be tricky since there is no uniquely correct answer so be prepared beforehand. 6. Definition and brief explanation. The next case is mostly useful for its framework question. Read all CFI articles and resources on business and corporate strategy, important concepts for financial analysts to incorporate in their financial modeling and analysis. The GE McKinsey Matrix was developed in the 1970s after General Electric asked its consultant McKinsey to develop a portfolio management model. Corporate and business strategy guides. This matrix is a strategy tool that provides guidance on how a corporation should prioritize its investments among its business units, leading to three possible scenarios: invest, protect, harvest, and divest. The market entry framework is the general framework for dealing with this kind of scenario. Relevant factors often include the situation of the market being entered, the state of the competition, and the process & strategy of making the first entrance into the market. The market entry framework is the general framework for dealing with this kind of scenario. You can be given a market sizing question as a standalone case (though less frequent) or as a part of a broader business situation case like “entering a new market”. The GE matrix / McKinsey matrix (MKM) is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.. A business portfolio is the collection of Strategic Business Units that make up a corporation. — In this article, we’ve covered: What market entry case interview looks like, Breaking down the framework into 4 easy steps, A market entry case example, Tips on using the framework… In the 1981 staff paper "Market strategy and the price-value model," Harvey Golub and Jane Henry introduce a framework designed for industries whose products have a sizable share of intangible or subjective value. McKinsey’s strategic horizons approach defines three “horizons” intended … The GE McKinsey Matrix was developed in the 1970s after General Electric asked its consultant McKinsey to develop a portfolio management model. As the market is not growing, acquisition is less and customer retention is high. The next case is mostly useful for its framework question. Once you know the types of questions they ask, preparation is straightforward. The company entering India would be likely to follow a very different and more aggressive entry strategy if it knew for certain that its customer penetration rates would be closer to 30% than to 10%. First mover advantage, Porter's 5 Forces, SWOT, competitive advantage, bargaining power of suppliers Market Sizing can be tricky since there is no uniquely correct answer so be prepared beforehand. The problem with this case is… It requires either a well-structured answer or a ton of business sense, and the candidate solving it … As the market is not growing, acquisition is less and customer retention is high. The cash cows are the most stable for any business and hence the strategy generally includes retention of the market share. Case interviews at management consulting firms are among the most difficult job interviews, but they are also quite predictable. You can be given a market sizing question as a standalone case (though less frequent) or as a part of a broader business situation case like “entering a new market”. 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