CASEBOOK
CONSULT CLUB
IIM AHMEDABAD
AUGUST 2015

Issue Details and Copyrights
Casebook, Consult Club, 2/e
©2014 by Consult Club
All rights reserved.
Notice
No part of this publication may be reproduced or transmitted in any form or by any means – electronic or mechanical,
including photocopy, recording or any information storage and retrieval system – without permission in writing from the
Consult Club, IIM Ahmedabad.
First edition: July 2014
Second edition: August 2015

(C) Consult Club, IIM Ahmedabad
What is this year’s IIMA Casebook all about?
Foreword
Building on the 1st edition of IIMA Case Book, the Consult Club of IIM Ahmedabad is proud to present the 2nd edition of the IIMA Case
Book. This edition leverages the 1st edition, and feedback from alumni and the student community. The objective of the Case Book is
to give the reader a comprehensive view of the basic frameworks covering multiple industry horizontals and solution verticals. The
broad framework is then followed by specific interview experiences in both a transcript and crisp format. Throughout the Case Book,
we have tried to ensure enhanced readability while retaining the comprehensiveness of the cases.
Structure of the Case Book
This Case Book covers an extensive range of Conventional cases to build the basics of frameworks and their usage. However, since real
life problem solving may not involve deploying specific frameworks, we have incorporated a host of Unconventional cases which may
involve deploying multiple frameworks or no framework at all.
•Each of the 8 conventional frameworks has one page explaining the basic framework followed by cases based on those frameworks
•Conventional Cases: In the pages that follow, for each conventional case there are 2 pages, an interview transcript page to show how
the case interview could go, and the next page is a an outline of the solution process including interviewee notes, case facts and
recommendations, which provide the reader a detailed step-by-step process for case solving. The direction taken by the interviewee
in the interview has been highlighted in the basic decision tree here.
•Unconventional Cases: The unconventional cases have the solution process page only; the emphasis is on solving these cases in a
logical and structured way.
How to make the most of it?
While reading this Case Book, we would suggest the reader should use the interview transcripts to set up a case between 2 people(or
groups), and after solving the case, the solution process sheet should be looked into to gain a broader understanding of the approach
and areas of improvement.
The frameworks are there to give a direction initially to new case-solvers and should not be treated as a fixed boundary, but could be
utilized by the reader to cover any case which comes up their way according to their own logical structure. Also, the reader should
leverage the Recommendations, Tips, and Suggestions to apply learnings from one case to another.
Remember, journey is as important as the destination. Case preparation is a group exercise with individual self-preparation as well.
Enjoy the process of preparation and let’s crack the case!

We would like to thank Harshita Singh, Rajat Shaw & Stuti Agarwal (PGP 2014-16, Consult Club) for leading the Case Book
initiative, and putting together this second edition of the IIMA Case Book. They have ensured breadth, and depth in the cases to
give the reader a comprehensive view of the kind of cases they may be administered.
We would also like to thank members of the PGP 2014-16 batch of the Consult Club who have contributed through cases,
thoughts, comments and feedback. We would also like to acknowledge the efforts of Parv Aggrwal, Aditya B, Apoorv Singh,
Shrey Agarwal and Hardik Wadhwa for volunteering to help the Club put together this case book.
We are also grateful to the alumni of the Consult Club, IIM Ahmedabad for their feedback on the cases which has helped us
further enhance the overall quality of the book. We would like to extend a special acknowledgement to the contributors of the
First Edition of the IIMA Case Book on which we have built the Second Edition.
Copyright © 2014
Consult Club, IIM Ahmedabad
Vastrapur, Ahmedabad 380015
Acknowledgements

Table of Contents
SERIAL NO. FRAMEWORK/CASE PAGE NO.
1. COST REDUCTION – Overview 8
Telecom Billing Process 9
Biscuit Manufacturer 11
Retail Store 13
2. INDUSTRY ANALYSIS – Overview 15
Insurance 16
Consumer Appliances 18
E-Commerce 20
3. NEW MARKET ENTRY – Overview 22
Lock Manufacturer 23
Retail Banking 25
Diagnostic Chain 27
4. GROWTH STRATEGY - Overview 28
Telecom Market 29
Boiler Company 31
5. NEW PRODUCT ENTRY – Overview 33
Anti-Smoking Pills 34
Automobile Service Station 36
Application Software and Bundling 38
6. SALES GROWTH – Overview 40
B2B Telecommunications Provider 41
Software Product Company 43
Retail Apparel Chain 45
7. PRICING – Overview 47
Proprietary Light Bulb 48
World Spacelines 50
Diagnostic Laboratory Chain 52
8. DIVERSIFICATION – Overview 54
Pharmaceutical Company 55
Oil Marketing Company 57
Mobster 59
CONVENTIONAL CASES

Table of Contents (Continued)
UNCONVENTIONAL CASES, GUESSTIMATES
SERIAL NO. CASE PAGE NO.
1. Help a Painter 63
2. Customers for an F.S. Product 64
3. US Airline Entry into China 65
4. Declining Response in a Competition 66
5. Pricing Strategy for Portkey 67
6. Call Operator 68
7. Vernier Calliper Manufacturer 69
8. School’s Deteriorating Performance 70
9. Partner Late to Office 71
10. Dip in Profitability of C.T. 72
11. Higher Costs faced by S.E. Asian Bank 73
12. Turn around a Copper Mining Company 74
13. Toffee Manufacturer 75
14. Restaurant 76
15. Open Plot of Land 77
16. Football Team – Diagnostics 78
17. Elementary, Dr. Watson 79
18. Merger and Acquisition 80
19. Pencil Manufacturer in India 81
20. Airline 82
21. Petrol Pump losing Business 83
22. Local Hospital 84
23. Hotel Mini Fridge 85
24. Robbery Planning 86
25. Consult a Consulting Company 87
26. Paint Manufacturer in India 88
27. Restaurant in Paris 89
28. PPP for Metro in Bangalore 90
29. Shahrukh Khan’s Net Worth 91
30. Inventory Management in a Milk Company 92
31. English Music Magazine 93
32. Entry of Home Furniture Maker 94
33. Surviving the Ad-Blockers 95
34. Testing a New Feature 96
35. Understanding the Customer 97
36. Hats in London 98
37. Books in IIM Ahmedabad 99
38. CASE INTERVIEW ASSESSMENT SHEET 100

Conventional Cases - Overview
Interview Transcripts
Conventional Cases - Solved

R & D Raw Material Processing
Storage &
Transportation
Distribution-
Sale force
Marketing
Customer
Service
Equipment
Human Capital
Cost of finance
Cost of raw
material
Contract & bulk
deals
Quantity used
Machinery
Factory rent
Labor hours
Technology
Capacity utilization
Packaging
Transport to
warehouse
Storage (Rent,
Labor, Inventory)
Transport to
customers
Sales Channel
Sales Force
Training
Marketing
channels
Strategy
Repairs
Spare parts
Returns
8
In a cost reduction case, a company is likely to aim for becoming more profitable by reducing their bottom line. An interviewee is expected to first
identify various cost component, followed by validating them, identify major cost drivers along with levers affecting their values, and finally
recommend how the company can change it’s ways to become more cost efficient.
Cost Reduction - Overview
Approach/ Framework (High Level) for the Case Type
Framework Summary
A company can reduce cost and become more efficient across its components. The best way is the look at the journey of a product/service right from the time its raw materials are bought to the
time it is delivered to the customer and he is happy after the post sale support etc. This is called a value chain analysis as each step of the process adds some value to the initial raw material and
accelerates its journey towards the final product. At each of these stages, we expect to find some levers which can be tweaked to make the process more efficient.
Tips
• Clarify objective, especially the cost buckets the interviewer wants you to delve into
• Cost cases are generally very streamlined till the time you are identifying places where cost can be reduced. Creativity comes into play when recommendations are asked by the interviewer.
Key Questions
• Is this particular company facing the problem of high costs or is it something that the industry is facing as a whole?
• Chalk the value chain and then ask if it is the correct way to do it? Or should it be done by splitting fixed and variable costs?
• What are the last 3 year trends in growth for the organization?
• Any major shifts in cost over time?
• Does any of these cost seem out of line?
2015-16

(C) Consult Club, IIM Ahmedabad 9
Cost Reduction - Telecom Billing Process– Interview Transcript
You have been approached by the CEO of a telecommunications provider company. He is worried
about the high expenditure in their billing process and wants your help in identifying areas where
you can reduce costs.
What are the different ways in which the client’s company send out bills to the customers?
There are three ways in which the bill can be sent to the customer. Through post, internet and by
sms. For this interview just concentrate on post and internet.
Since sending bills thrugh internet would involve minimalistic cost, focusing first on snail mail and
looking at different cost component involved in the value chain.
Sure. Go ahead and list down various cost components.
There will be cost involved in buying raw material, printing bills, sending bills to customers. And
fixed cost involved will be the infrastructure renting cost and the employee cost.
Assume both rental cost and the employee cost to be optimal.
OK. So, let’s begin by evaluating the first component of the value chain. Raw material for printing
are paper and ink.
Let’s take paper first and try to reduce paper cost followed by ways to reduce the cost of ink.
Sounds reasonable. Go ahead.
We can bring down the paper cost by using thinner paper, by using smaller size of paper, by
printing on both sides of the bill, by leaving lesser margin, may also use a recyclable paper.
To reduce the cost of ink used, reduce the number of words on the bill by eliminating unnecessary
details. Reduce the font size and only print a black and white bill to save on the coloured ink.
Should I move ahead and explore ways in which the client can save cost in sending the bills to the
customer?
Yes. Why don’t you help the client in reducing their expenditure in sending the bills by snail mail.
OK. So, the total annual cost in sending bills by courir will be equal to = No. of bills sent/month*
Frequency of sending bills* (Base price for mail+ (Price/km)*No. of kms)
Let’s start with Price/km first. To reduce this, switch to a cheaper mail/courier service. This can be
achieved by using regional courier services as well.
Next, I would want to understand the base price for mail. How many hubs does the client have to
send out the bills to the customers?
As of now, the client has one facility in Mumbai and the bills are mailed all across India from the
Mumbai hub itself.
Ok. Another way in which we can optimize this is have smaller facilities in cities like Delhi, chennai,
Kolkata and send the bills to customer sin that region from there.
It would serve the purpose of lower base price as well as quicker and timely delivery of bills with
lower bill loss rates.
That’s interesting. How else can you reduce the cost of sending the bill to the customer?
Apart from this we can reduce the frequency of sending out the bills to the customers. Here, the
tradeoff is between the cost saved in mailing the bills and interest forgone from the money recieived
a month earlier.
Let’s reduce the frequency of sending bills from one per month to one per two months. When do
you think this will become feasible?
Okay. To analyse this I would want to understand the approximate cost in sending out one bill by
mail/courier.
Sure. You can assume that one time cost of sending the bill by mail is around Rs. 20. And for all
practical purposes, take the interest rate to be 10% annually.
By not sending the bills every month, The client will save Rs.20/bill. Assuming the rate of interest to
be approximately 1% per month, the bill amount should be above Rs.2000 for the client to be
making losses by reducing frequency of sending bills.
i.e. if the bill amount is more than Rs.2000 then the bill should be sent every month, But the majority
of bill value in India would be much less than even Rs.500. So, in that case, reducing the frequency
becomes a cost saving option.
Can you think of a way in which you can reduce the costs overall?
I think sending the bills through internet or sms would lead to massive reduction in overall cost.
How much does it currently cost to send a bill through internet?
Around 5 paise.
Okay, so our aim should be to encourage the customers to start using internet as a medium to pay
bills/ view bills.
Interesting. How do you plan to do that?
In the intitial phase we can target those customers who use internet to pay their bills. We ce shuld
incentivize them by telling them about the benefits of sending bills online. A few of them are-
1.Prompt delivery of bills
2.No losses- no fudging of content, it wouldn’t get lost during transit, lesser chance of a bill going to
the wrong address
3.Convenience of having a bill online. You can check it whenever you want and there’s no hassle of
storing them carefully.
4. Incentivize people to use internet to pay bills by giving some discounts in the initial phase.
2015-16

You have been approached by the CEO of a telecommunications provider company. He is worried about the high expenditure in their billing
process and wants your help in identifying areas where you can reduce costs.
Cost Reduction - Telecommunication Billing Process
Approach/ Framework
Recommendations
• Reduce the unnecessary expenditure on paper and ink. This being an inelastic good, customers won’t be bothered by smaller size or lesser words until relevant info is present
• Explore the alternate route of sending the bill to the customer. Keep in mind the new evolving technology and try to push customers towards using it
• Highest cost component of snail mail can be brought down by reducing the frequency of sending bills to one bill per two months. Only when bill amount is less than Rs.2000
Interview Summary
This is a cost reduction case where the interviewee should quickly establish the major cost buckets after discussing with the interviewer. Also, instead of probing into each bucket, ask the
interviewer if he has a particular cost bucket in mind.
Observations/Tips/Suggestions
• Each cost component should be broken down into multiple cost levers to ensure that nothing is being missed out
• Breaking down cost of snail mail into components helped the interviewee to analyze each one carefully
• Further having to shift the customers to the low cost option is also relevant and important to bring down cost drastically and for having convenience in the future
Interviewee Notes
• Reduce cost of bills
• A cost benefit analysis for
each mode of sending bill
• Reducing the cost of
preparing bill itself
Case Facts
• 3 ways of sending bills- SMS,
internet & Snail mail
• Internet and SMS are
optimized, possibility only in
snail mail
• Rental and employee cost are
optimal
• Only one billing hub in India- in
Mumbai and bills are sent all
over india from Mumbai
• Cost of sending a bill by snail
mail=Rs. 20
• Cost of sending a bill though
internet= 5 paise
• Rate of return annually= 10%
2015-16
R & D
Raw
Material
Processing
Storage &
Transportation
Distribution-
Sale force
Marketing
Customer
Service
Equipment
Human Capital
Cost of finance
Cost of raw
material
Contract & bulk
deals
Quantity used
Machinery
Factory rent
Labor hours
Technology
Capacity
utilization
Packaging
Transport to
warehouse
Storage (Rent,
Labor)
Transport to
customers
Sales Channel
Sales Force
Training
Marketing
channels
Strategy
Repairs
Spare parts
Returns
Quantity of
paper
No. of bills
Size of
paper
Utilization
Quantity of
ink
Fewer
words
Black only
Small font
size
Transport to
customer
Move to
cheaper option
Reduce
frequency
Increase
ticket size
Hubs at shorter
distance

Cost Reduction - Biscuit Manufacturer - Interview Transcript
Your client is a biscuit manufacturer. Over the past couple of months it has seen a decline in
profits. Diagnose and recommend solutions.
I would like to ask a few clarifying questions before I begin to analyse the case. I would want to
understand the client’s business. What kind of biscuits does the company make?
The company makes only 1 kind of biscuits.
Which country is the client based out of and how many factories do they have? I want to
understand the scale of business and extent of coverage.
The biscuit company is based in one state of India with three factories spread uniformly across
the state.
Ok. So the company manufacturers biscuits in a particular state of India. To understand about the
distribution process, to whom does the company sell the biscuits and are they based pan India?
The supply of the biscuits is done to the wholesellers who can be from any state in India.
That’s very helpful. Now since they supply the biscuits to these wholesellers across the country,
are their warehouses also located pan India?
Yes.You are correct. The warehouses are also spread uniformly across the country. I would urge
you to focus only on the cost side of their business.
I would want to analyse this problem by looking at various components of the value chain in
biscuit manufacturing. According to me, this can be broken down into raw material procurement,
processing costs, storage & transportation, marketing & promotions. Do you think I have missed
out on any cost bucket?
No. I would like you to focus on stoarge and transportation cost for the purpose of this problem.
Ok. Looking into the storage costs first. Is the storage cost/packet of biscuit higher for the client
as compared to the avergae market? And is this trend uniform across all the warehouses
belonging to the client?
Yes, the overall cost of storage/unit is higher for the client as comparred to the competitors.
Storgae cost is one area where we can reduce costs for the client. Storage cost can be broken
down into rental cost, labor wages and inventory losses. Do you want me to look into a particular
component or should I go ahead and explore all of them?
Focus only on inventory losses for now.
Okay. So, inventory can be damaged because of three factors. First one is due to spoilage
(Breakage, pest infestation, warehouse conditions like moisture). Second one is due to
inefficiency in turning over the inventory due to which it might get expired. Third might be
because of pilferage.
The inventry losses in our case are high because of the presence of high percentage of expired
biscuits.
The client’s warehouse has a lot of expired goods which keep sitting in the warehouse for longer
duration and hence lead to higher storage costs. Reasons for this might be poor demand prediction,
delay in supply of goods to the warehouse or incorrect process for inventory management. Does
the client have a system in place to predict the demand of biscuits?
Yes, the client owns a software which takes into account the demand in the previous intervals and
then predicts the demand for the next interval.
Since the problem of expiry is uniform across the warehouses, delay in supply to the far off
warehouses can be ruled out. Therefore, the biscuits might be getting expired due to inefficient
inventory management system.
What are the different ways in which an inventory can be turned over and what might be going
wrong here?
An inventory management system can be First in First out or it can be Last in First out. The problem
of expiry might arise if the inventory management system is of LIFO type.
Yes. You are correct. At present the biscuit cartons which enter the warehouse last are the ones
which are sent to the retailers first. The company has employed two different transportation
agaencies to take care of moving biscuits from factory to warehouse and then from warehouse to
the retailers. Due to the lack in coordinaiton between these two entities, a lot of biscuits were
getting spoilt. Now that we have zeroed in on the problem area, how do you propose to solve this?
As per my understanding, the cartons of biscuits which come in last are placed near the gate of the
warehouse and the transportation company which takes them to the retailers just picks it up from
there for the sake of convenience. Is that correct?
Yes. Please go on.
To ensure that FIFO is followed, either give the job to the same transportation company. Second
solution could be to place the cartons that come in later behind those which have been lying in the
warehouse for some time. Everytime, some of the boxes are taken away to retailers, the boxes kept
at the back should be moved in the front. This will ensure that lesser biscuits get expired.
2015-16

Your client is a biscuit manufacturer. Over the past couple of months it has seen a decline in profits. Diagnose and recommend solutions.
Cost Reduction - Biscuit Manufacturer
Approach/ Framework
Recommendations
• Use the same transport company to move the biscuit from the factory to the retailer
• Placement of the biscuits which come later should be done so that the ones which have come earlier remain visible and in the front
• Move the biscuits at the back to the front as soon as the biscuits kept in the front are being taken away for delivery
Interview Summary
• Always list down few possible options and then clarify with the interviewer if you’ve missed out on anything. Also, Ask him to whether he wants you to delve into a particular bucket
Interviewee
Notes
• High storage & warehouse
costs
• Makes 1 type of biscuits
• Warehouses spread
uniformly across the
country whereas factories
only in one state
• Supplies biscuits to
wholesellers
Case Facts
• 3 factories concentrated in one
state
• Higher storage cost/unit in all
warehouses as compared to
the competitors
• Different transport company
used for bringing biscuits form
factrory to warehouse and
from warehouse to the retailer
2015-16
Storage &
Transportation
Distribution-
Sale force
Marketing
Customer
Service
Equipment
Human Capital
Cost of finance
Machinery
Factory rent
Labor hours
Technology
Capacity
utilization
Packaging
Transport to
warehouse
Storage (Rent,
Labor)
Transport to
customers
Sales Channel
Sales Force
Training
Marketing
channels
Strategy
Repairs
Spare parts
Returns
Cost of raw
material
Contract & bulk
deal
Quantity used
Storage
Rental Labor
Inventory
Losses
Expiry
Poor demand
prediction
Poor inventory
management
Late supply
Spoilage Pilferage

Cost Reduction - Retail Store - Interview Transcript
The CEO of a retail company has approached you with the problem that his company is burning
cash. He wants you to provide suggestions to improve his business.
Sir, I would like to understand the question better. By burning cash you mean to say that the
store is incurring losses.
Yes
Sir, before I analyse the reasons for this loss, I would like to understand the business better.
What kind of retailing are they into?.
They are in apparel retailing.
I would like to know the region of operation of these stores and the number of stores that
they have.
So they have 12 stores across India. Out of these 2 are profitable and 10 others are in loss..
As I understand the market conditions in different parts of India would be different and
hence it would take different analyses for them. I would have to group the stores region wise and
understand what causes them to be in profit or loss.
Sounds good. Let us concentrate on the Bombay city region..
Sir, within the Bombay region I would like to know the number of stores and the kind of
segment they are targeting. Also I would like to know the kind of competition we have.
So, they have 1 store in Bombay which is situated in a suburban mall. We are a value for
money store. There are 2 similar stores in the mall which target the same segment.
Sir, the decline of profit may depend on external or internal factors. If the profit of all the
stores in the region is dropping then it may be due to a drop in demand or some regulatory
issues.
Internal issues will consider the operation side of the business.
There have been no external factors as you say. In fact the business of the competitors has
been growing steadily
In order to understand the loss I would like to consider the revenue and costs aspects of the
business. So, have the costs of our business been increasing?
Yes they have been. Let us focus only on the cost end.
Fine. The costs can be divided into fixed and variable costs. The fixed costs components would
include the rent of the store if it is not owned, maintenance, lighting etc. The variable costs would
include the procurement cost of clothes and the salaries of the employees.
Sounds good. The store is rented. The cost of leasing is fixed. Can you think of something to
reduce that?
Sir, we can go in with the arrangement wherein the cost of leasing can be made a direct function of
the variable component of sales
Ok.
Sir, I can make the salaries of the employees also variable and link them to the sales
generated. That would spur sales. Also are the cloth procurement costs stable and comparable to
competition?
Yes they are similar. Can you think of something else that could affect this cost?
Sir, there might be damages related to the clothes. The clothes that are on display get
damaged generally. Is there a cost related to them?
Yes we do have to sell such clothes at a 20% discount. Also, the number of customer returns the store
has been experiencing has been increasing at a steady rate
We can ensure that such clothes are sold off quickly. AT the same time, we might want to add
resources in the preliminary inspection & training front to reduce the number of returns incidents.
Well, that’s fine. The store has also been experiencing greater costs on account of loss of
merchandise. Can you think any which way this might be happening?
This could either be on account of either stealing by external or internal customers(pilferage). This
could easily be prevented by having better security measures in place such as CCTV recordings,
employee frisking etc.
2015-16

The CEO of a retail company has approached you with the problem that his company is burning cash. He wants you to provide suggestions to
improve his business.
Cost Reduction - Retail Store
Approach/ Framework
Recommendations
• Exploring the possibility of linking the rental costs and the employee wages as variable components of sale rather than as fixed components
• Countering Pilferage by investing in security measures
• Customer returns issue should be traced back to the procurement end of the chain with better monitoring & inspection systems in place.
Interview Summary
• In case of chains, for problem simplification always look for possible clustering /segmentation. This also suggests clarity of thought
• Issues may link across the value chain. For example a Customer returns issue in this case may have been primarily triggered at the procurement stage itself.
Interviewee
Notes
• Limited to apparel
retailing business
• Value for money store
• Focus only on reduction
of costs (may have
revenue stream problems
too)
• Rented Store with a fixed
cost of leasing
• Stable costs of cloth
procurement
Case Facts
• They have 12 stores across
India. Out of these 2 are
profitable and 10 others are in
loss
• Higher storage cost/unit in all
warehouses as compared to
the competitors
2015-16
Storage &
Transportation
Distribution-
Sale force
Marketing
Customer
Service
Equipment
Human Capital
Cost of finance
Machinery
Factory rent
Labor hours
Technology
Capacity
utilization
Packaging
Transport to
warehouse
Storage (Rent,
Labor)
Transport to
customers
Sales Channel
Sales Force
Training
Marketing
channels
Strategy
Cost of raw
material
Contract & bulk
deal
Quantity used
Storage
Inventory
Losses
Pilferage
External
Customers
Employees
Damages Spoilage
Rental
Costs
Labor
(Wages)
Repairs
Returns
Spare Parts

A company is looking to enter/expand into an industry and wants to know about the industry. The candidate is expected to elucidate the relevant
characteristics of the industry and decide whether the industry is attractive for the client or not.
Industry Analysis - Overview
Approach/ Framework (Broad) for the Case Type
Framework Summary
Industry analysis is usually required in most types of cases, where the candidate usually begins by analyzing the industry. Depending on the exact problem statement, parts of the framework
may be used to analyze the industry.
Tips
The interviewer will expect the candidate to know about certain aspects of particular industries. For e.g. the value chain for an industry might be very obvious and the candidate should avoid
asking about it and make their own assumptions. On the other hand, it might be detrimental to make assumptions about the market situation and the candidate should extract as much
information on that as possible from the interviewer.
Key Questions
• Is this industry synergetic to our current business?
• Are there barriers to entry?
• Are substitutions available?
• How will we price our products and services?
2015-16
Identify risks
Analyse a given
industry
Objective of
analysis
Entry into the
market
Decision on
expansion/ growth
Regulatory Substitutes Entry/Exit barriers
Current Macro-
economics
Opportunity
identification
Need-gap
Synergies with
existing business
Industry
fundamentals
Verdict on
attractiveness

Industry Analysis - Insurance - Interview Transcript
A financial services provider wants to understand the insurance industry. Can you analyse the
industry for them?
Sure Sir. So I have to analyse the insurance industry from a market-entry point-of –view. Is that
correct?
Yes.
So can I begin by asking some clarifying questions? Are we looking at the insurance industry as a
whole or certain specific verticals under it like life insurance, home insurance or health
insurance?
I would like you to analyse the broader industry first, we can narrow it down later.
Do we know the current status of the industry? About its recent performance as a whole?
What do you think? On what factors will the industry performance depend?
On a broader level, I think the top-line of this industry will be defined by the number of policy
holders. People will buy insurance policies only if they have some disposable income. This means
that the number of policies will be in some ways proportional to the economic status of the
country. Thus I am assuming, as more and more countries are becoming economically advanced,
more policies must have been bought over the years.
Coming to the bottom-line, we need to look at how insurance companies make profits. As per my
understanding, insurance companies make money by investing the premiums collected into
government securities and other investments. Hence, their profits will be determined by the
interest rates prevailing in the market. Do we know how the rates are in the market, currently?
That will depend on which market we are looking at. Let us focus on the Indian market for now.
So interest rates in India have been historically on the higher side.
This would mean that the industry is structurally attractive in India at first glance. But we will have
to look at several other factors before arriving on a verdict. And I think these factors will differ
significantly on which sector within insurance we are focusing at. Do we know which sector is the
client looking at?
You need to advise on that. Which sector makes more sense for our client
For this I would first like to know a little bit more about the client. What all financial services does
our client provide currently?
The client has major interest in asset management and corporate treasury management for some
large conglomerates in India.
Okay. So our client has experience in handling the assets of large companies, which indicates they
already have the knowhow of investment and liquidity management. This means it will not be
that difficult for the client to enter into insurance. But may I know how the client has been doing
in their business currently?
The client has been in business for past 10 years and has grown to capture 10% of the market share
in the asset management space, which is significant considering there are 50+ competitors. But
recently, the share has stagnated and the company is finding it difficult to acquire new customers.
India, due to its large population, will be offering a large market to tap into for financial services
providers. But considering that there is only a limited population will have disposable income, I
believe the client is looking to sell other products to the same customers rather than trying to
acquire new customers. I think this makes sense in the long run. Also, since there are so many
competitors and it might be difficult to make the customers switch their service providers, the client
should definitely look at other avenues.
Yes that is correct.
Also, since our client is having 10% share, this means it will have already have a large customer base.
Coming to the sectors within insurance, I believe there are 3 major sectors- Life, health and property
insurance. Is that correct?
Partially. Property insurance is a part of the larger liability insurance area . This can also include
insurance for automobiles, business mishaps and other miscellaneous insurance apart from property
insurance.
So, among these the client should venture into property insurance first. There are two major reasons
for this- first, our client already has the knowledge of asset management and hence will be able to
locate lucrative investment opportunities. Second, since the customers for life and health insurance
will be individuals while those for liability insurance will be both individuals and corporates. Our
client has a customer base of large conglomerates which will like to insure their property and the
like.
That is a good way to look at it. Any other thing you think the client should know about the insurance
industry?
I feel in the insurance industry, as is the case with the larger financial services sector, the role of
regulations is very large. The client should carefully study all the regulations in place and analyse
how they will affect their current business as well as their future in the insurance industry before
entering into this industry. Also, I believe this industry should continue to grow in India as more and
more people are entering into the medium-income groups.
Okay. Thank you for your time.
2015-16

To analyze the insurance industry for a financial services provider
Industry Analysis - Insurance
Approach/ Framework
Recommendations
• Should focus on liability insurance
• Should leverage the current user base
• Should be mindful of the regulations
Interview Summary
The candidate did a good job in figuring out the fundamentals in terms of the factors on which the top-line and bottom-line of the industry depend. Identifying liability insurance as the target
area was the easiest part. She seemed to know the basics of the finance industry and it could have been difficult for someone oblivious to those basics. Overall a good performance.
Since the client was already present in an allied industry, the question was designed to judge the candidate’s knowledge about the industry fundamentals. The interviewer must have been
impressed by her knowledge of the industry and the overall logical consistency.
Interviewee Notes
• Market entry into insurance
industry
• Client currently in financial
services
• Top-line- no. of policies,
bottom-line- interest rates
• Look at broader industry
first, then narrow down on
area. Tell about industry
fundamentals, depending on
synergies choose the area.
• Ask about the current status
of the industry
• Which area within
insurance?
• Risks
Case Facts
• Interest rates high in India
• Client in the market for 10 years;
holds 10% share in current market
• Client in asset management and
corporate treasury
• Customers are large
conglomerates
• 3 areas- Life, health and liability
2015-16
Analyse insurance
industry
Objective of
analysis
Identify
risks
Entry into
the market
Decision on
expansion/
growth
Regulatory Substitutes
Entry/Exit
barriers
Current
Macro-
economics
Opportunity
identification
Need-gap
Synergies with
existing
business
Industry
fundamentals
Verdict on
attractiveness
Top-line,
bottom line
determinants
Area within the
industry

Industry Analysis - Consumer Appliances - Interview Transcript
Our client is looking at investing in the solar energy business, and would like us to advise him
regarding the attractiveness of the industry
So, our client would like to advise him about the attractiveness of investing in the solar energy
business. Is that correct?
Yes
So, I would like to begin by asking a few preliminary questions about our client. What business is it
currently engaged in? What geography does it operate in? What are the products that it sells?
The client is a consumer appliances manufacturer, with a strong presence in most of the top Indian
cities, and some sales in Sri Lanka, Bangladesh and Malaysia. It manufactures various household
products such as ovens, food processors, vacuum cleaners, air coolers etc
Why is it looking at investing in solar energy? Also, is it looking at investing in India, or abroad?
Our client has significant cash reserves, and is looking at investing in emerging industries. It has
been told that solar energy is an industry with a lot of growth prospects, and it would like to get a
piece of the action. It wishes to focus on India
Alright. Could you tell me a little about the solar energy industry in India? What is the current
installed capacity? What are the growth prospects?
Well, India is well-positioned to exploit solar as a potential energy source, due to the abundant
sunshine that it receives. It has a current installed capacity of 34000MW, and solar energy accounts
for 1% of India’s total energy mix. The government recently unveiled a plan to boost capacity to
100,000 MW by 2022.
What are the different components of the industry?
Can you hazard a guess at the different applications of solar energy?
Sure. We can classify the applications of solar energy into two main components- industrial and
commercial. Under industrial, we can have solar energy used for generating electricity to replace
thermal power plants, or for agricultural purposes, such as water pumps for irrigation. Under
commercial, you could have different applications such as lighting, solar water heaters, cookers etc
That sounds like a good classification of the applications. What could our client focus on?
Considering that our client is a consumer electronics manufacturer, it could focus on the
commercial side of the industry, as there could be synergies with its existing products. Also, its
existing infrastructure, such as manufacturing and distribution network, may facilitate that. It
could expand its current portfolio to include solar-based products such as solar cookers, lamps
and water heaters.
And how could it do that?
It could do that in three ways. First, it could invest in technology to build new products. Second, it
could acquire a company which manufactures such products. Third, it could enter into a joint
venture with a solar company to manufacture solar-based products.
And what are some of the factors it will have to keep in mind before investing?
Should it go for in-house development of solar-based products, it will have to develop
technological capability, which may require developing R&D facilities and hiring capable
engineers. It will also have to consider the rate of return on investment and the time taken to
recover its investment. It may need to look at new markets, such as the rural market, and may
need to invest resources in developing distribution channels, if they do not currently exist. It may
also need to look at the regulatory scenario around investing in the sector
Alright. Could you please summarize our discussion?
Our client, a consumer appliances manufacturer, would like to invest in the solar energy industry.
We looked at the different applications of solar energy and thought that, keeping in mind
synergies with the existing business, it could focus on the commercial side, such as solar cookers,
water heaters etc. Regarding mode of entry, it could go for in-house development, acquisition of
a smaller company or a joint venture. However, it would need to consider R&D capabilities, rate
of return on investment and regulatory aspects before taking any decision.
That’s good. Thank you for your time.
2015-16

To analyze the solar energy industry for a consumer appliances manufacturer
Industry Analysis - Consumer Appliances
Recommendations
• Test structuring approach of candidate (Eg: describing applications of solar energy)
• Test ability of candidate ideate (Eg: factors to keep in mind before investing)
• Direct toward synergistic link between current business and target area
Interview Summary
The candidate did a good job in laying out the framework. Through her preliminary questions about the client, she was able to later establish a connection which helped in narrowing down
focus area of investment. She laid out the approach to market entry quite well, and was able to identify certain key issues to be kept in mind for the investment
Interviewee Notes
• Similar to market entry case
• Queries about client; later
used to identify synergy
areas
• Structured approach to
laying out applications of
solar energy
• Market entry framework- in-
house
development/acquisition/JV
for mode of entry
Case Facts
• Client among top 5 consumer
appliances manufacturers in India-
makes ovens, food processors,
vacuum cleaners, air coolers etc
• Presence in top Indian cities, Sri
Lanka, Bangladesh, Malaysia
• Solar energy- installed capacity of
34000MW, govt plan to boost
capacity to 100,000MW by 2022
2015-16
Analyse insurance
industry
Objective of
analysis
Identify
risks
Entry into
the market
Decision on
expansion/
growth
Regulatory Substitutes
Entry/Exit
barriers
Current
Macro-
economics
Opportunity
identification
Need-gap
Synergies with
existing
business
Industry
fundamentals
Verdict on
attractiveness
Applications
Mode of entry
Approach/ Framework

Industry Analysis - e-Commerce - Interview Transcript
Our client is a watch brand, who wants to move into the online space. However, he has no
understanding or experience of the e-commerce space, and wants us to conduct an industry
analysis. Can you help him with that?
Sure sir. So, just to clarify the question, our client is a watch brand which wants to move into the
online space, and wants us to analyse the e-commerce space. Is that correct?
Yes.
To start off, I’d like to ask a few clarifying questions about our client. What sort of watches does
he sell, and in what proportion? Does he sell both men’s and women’s watches, and if so, what is
the percentage of each?
Our client sells wrist-watches in two main segments- luxury and midrange. He sells both men’s
and women’s watches, in a 40:60 ratio
What is the proportion of sales and profits of each of the segments? What is our market share in
each segment?
Well, the luxury watches account for 20% of sales and 30% of profits. We have 26% market share
in the mid-range segment and 24% market share in the luxury segment
That’s great. I’d also like to understand a little bit about our competitors. How many competitors
do we have in each space? What are their market shares?
In mid-range, segment, we have two main competitors, Arya and Sansa, with 30% and 18%
market share respectively. In the luxury segment, there are three other major players, Riordan,
Vance and Le Guin, with 29%, 26% and 18% market share each.
And do any of these players have a presence in the online space?
Arya and Sansa have their own online retail stores, and sell a few of their watches on major e-
commerce websites such as Flipkart and Amazon. Of the luxury watch makers, only Riordan has
its own online store. So, do you have any ideas as to how the client can develop an online
presence?
Sure. Let me take a couple of moments to gather my thoughts.
Our client could build its online presence in two ways- standalone website or e-commerce portal. If it
goes for a standalone website, it will need to drive traffic to it, by means of advertisements and SEO
activities. If it goes the e-commerce portal way, it can do one of three things- put its entire product
portfolio online, have only the bestselling products sold online, or have initiatives like flash sales such
as those conducted by Xiaomi, to generate publicity, especially for new watch variants.
That’s good. Say our client goes in for the e-commerce portal option. Which of his segments would
you suggest he focus on?
The mid-range segment accounts for most of the sales and profits. Also, online shoppers are quite
price-conscious and are always looking out for the best deals. It may be easier to offer discounts on
the mid-range segment, as doing so for the luxury segment may dilute brand equity. So I would
recommend that it sell some or all of his mid-range watches online.
That’s good. Anything else?
Well, our client can use its offline stores to develop its online presence, maybe through promotion
activities in the stores which direct customers to the online store. Apart from the major e-commerce
portals, it may also choose to look at the niche websites, which cater to a particular category of
products, where it may be able to get better traction. However, it will have to look at differentiating
with respect to its competitors on aspects other than price, and communicating the value of its
products to customers
Great. Thank you for your time.
2015-16

To analyze the e-commerce industry for a watch brand
Industry Analysis - e-Commerce
Recommendations
• Category to focus on for e-commerce option
• Explore niche websites for greater traction
• Could have explored more sales growth options
Interview Summary
This is a strategy case where some knowledge about the existing e-commerce environment would be helpful in making targeted recommendations.
• Do Keep a tab on industry happenings
• Further brainstorming to come up with challenges if the interviewer asks, “Anything else”?
Interviewee Notes
• Understand client and
current market situation
properly
• Use general knowledge
about e-commerce to make
recommendations
Case Facts
• Client sells two types of wrist
watches- luxury (24% market
share) and mid-range (26% market
share)
• Mid-range competitors- Arya (30%
market share) and Sansa (18%
market share)
• Luxury competitors- Riordan (29%
market share), Vance(26% market
share) and Le Guin(28% market
share)
• 17 stores across 10 cities in India
2015-16
Analyse insurance
industry
Objective of
analysis
Entry into
the market
Decision on
expansion/
growth
Opportunity
identification
Need-gap
Synergies with
existing
business
Industry
fundamentals
Verdict on
attractiveness
Competitor
assessment
Approach/ Framework

Market Entry, Analyze and recommend entry strategy
New Market Entry - Overview
2015-16
New Market
Entry
Vision
Goals
Objectives
Customer –
New Market
Segments
Needs
Profiling
Size &
Growth
Client’s
Target
market share
Product
Customer
Expectation
Available
Products
Identify
Gaps of
above 2
Company
Product
Offerings
Resources –
Capital,
Technology
& Labour
Industry
SWOT
Analysis
Barrier to
Entry/Exit
Our
Estimate of
Market
Share
Identify Gaps
of above 2 Our
Strengths &
Strategic
Assets
Market Share
Competitors
& Share
Entering
Strategy?
If Yes,
How?
Start from
Scratch
Acquisition
Joint Venture
No
Framework Summary
Understand what the company ‘s objectives and expectations are. Does it make business sense for them/ Does it align with the overall firm strategy. Analyze the feasibility of market entry by
considering 4 different buckets. Then recommend whether they should enter or not. If yes, how should they do it.
Tips
Not every aspect of the framework mentioned will be applicable to all cases. But try to cover as much as you can, so that you get a good idea of the industry and the client current status. It is
very important to identify where the client would stand in the industry compared to the existing competitors and what measures should be taken to mitigate competitive edge of incumbent.
Observations
Most of the times interviewer will be satisfied if you analyze and suggest, whether to enter or not. But it is always good to take an extra mile by giving a high level plan on how to enter and
capture the market.

New Market Entry - Lock Manufacturer – Interview Transcript
Our client is a leading lock manufacturer in India. He wants to enter the Nigerian market. Nigerian
market has a lot of oil refineries. He has approached us to know how he should go about entering
the market.
Reiterating my understanding of the question. Can you tell me a bit more about the Nigerian
market? I am unable to get the connection between the oil refineries and the lock manufacturers.
Basically, locks are used for both the residential purposes and industrial purposes.
What kind of locks are we in? Do we manufacture some hi-tech number locks or simple vanilla
locks?
We basically manufacture simple door locks. We also provide industrial purpose locks to
safeguard oil and other industrial products. These are similar to door locks.
One final question: Has our client already decided to enter the Nigerian market. Or does he want
us to analyse this as well?
No he is yet to decide whether to enter this market or not. He wants our advice regarding whether
to enter or not? And if entry, how to go about entering this market?
Now the candidate comes up with a framework which captures industry parameters, client’s
competencies, financials and mode of entry
Let’s just focus on the industry part. This is the data
available on the parameters you mentioned..
I would like to focus on how we sell our products. I assume we would be selling residential
products through a distribution channel comprising of distributors and retailers while the
industrial products would be sold directly to the clients.
Yeah that’s true. Focus on residential aspect as of now
Next, I would like to focus on our customers. Do we know the buying behaviour of our customers?
Ok good, now you are coming to the point. Nigeria is a land where you see a lot of thefts happening in
broad day light. As a result, customers purchase locks not to protect their goods but to delay the theft.
They lock their houses with some 10-20 locks in order to delay the theft.
Ok, that is interesting. Now I assume if this is the case, then primarily 2 things would drive the
purchase – a) Price b) Availability
I assume quality of the product won’t drive the customers.
Yes, the customers are not at all quality conscious. They buy local China locks.
How different are we on the price point?
Our locks are 40% expensive than the local China locks.
Is there any specific reason why our locks are so expensive?
Yes, we provide premium quality locks that last for 15 years compared to Chinese locks.
But, I assume customers don’t bother much about the quality.
Yes, that is true. So, now what you recommend?
The 2 most important factors for customers are price and availability. On the price point, we are
expensive compared to the competition but superior in quality. But, the customers don’t bother much
about our quality. On the availability front, it would take us huge time and investment to build up a
distribution network. Based on this, I am a bit apprehensive of going forward in the residential space
in this market.
2015-16

Client wants to enter into Nigerian market. The objective is to analyze the market and recommend the client an entry strategy
New Market Entry - Lock Manufacturer
Approach/ Framework
Interviewee Notes
• Noted down client industry
and the target market
• Clarifying questions on
client industry and target
market
• Trying to understand client
product portfolio
• Questions on purchase
pattern to understand
customer behaviour
Broad-approach
• Considered 4 different
buckets to understand
market dynamics,
competition, entry strategy
and financial strength
• Identified purchase drivers –
Price and availability
Case Facts
• Client manufacture both simple
locks and industrial purpose locks
for oil refineries etc.,
•Lot of thefts happen in Nigeria,
hence customers buy 10-20 locks
to delay theft
•Customers are not quality
conscious
•Client locks are 40% expensive
than china locks
•Client lock are premium quality
which last for 15 years
2015-16
R I
Size 400m 100m
Growth 12% 6%
Lifecycle Growing Growing
Profitabilit
y
low high
Competiti
on
3 major
players
8 major
players
New
Market
Entry
Vision
Goals
Objectiv
es
Customer –
New
Market
Segments
Needs
Profiling
Size &
Growth
Client’s
Target
market
share
Product
Customer
Expectation
Available
Products
Company
Product
Offerings
Resources
– Capital,
Technology
& Labour
Industry
SWOT
Analysis
Barrier to
Entry/Exit
Our
Estimate
of
Market
Share
Identify
Gaps of
above 2 Our
Strengths &
Strategic
Assets
Market
Share
Competit
ors &
Share
Entering
Strategy?
If Yes,
How?
Start
from
Scratch
Acquisiti
on
Joint
Venture
No
Recommendations
• Client’s product did not match the customer requirements in the market. The client also had to invest heavily on new distribution channel. Hence going ahead with the client’s product in
this market is not attractive
Interview Summary
The interviewer was happy with the overall analysis. But the candidate could have consider all possible solutions.
• Interviewee did not consider other possibilities such as customizing the product based on customer needs. Customers tend to buy locks in bulk, this market could be a great way of getting
into a new product portfolio
• Always come up with all possible solutions and eliminate based on feasibility
• Try to back up the entry strategy with cost benefit analysis

New Market Entry - Retail Banking - Interview Transcript
The industry is characterized by significant competition from numerous public sector banks, domestic
private banks and other international banks like the client; besides the numerous smaller scheduled
and co-operative banks throughout India.
That’s not very encouraging for the client as it might significant barriers in penetrating the market.
However, this does not necessarily mean that the competition is fierce in all services. As I understand,
most of the business in the retail banking industry is currently generated out of
corporate and consumer loans where banks primarily cater to the larger corporate and the upper
classes of the society. Would you agree with me?
That’s right but I am not quite sure where this is leading. Please make your point.
Sure. I was trying to explore was the presence of untapped opportunities for the client in the market.
As you had mentioned earlier, the client has a strong presence in the personal and business loans
business for small and medium enterprises. However, the other banks in the Indian
banking industry focus primarily on the larger enterprises. This means that the client can strongly
leverage its core expertise in the Indian market and tap into the huge market of SME enterprises
Okay, I follow your arguments now. Do you see any other roadblocks besides competition for the
client’s growth prospects?
I believe the existing regulations in the banking sector significantly restrict the number of branches
foreign banks can operate and it is very difficult for them to get the authorization for every new
branch. This would pose a serious bottleneck to the client’s growth
So would you recommend the client to enter India?
Yes, I believe the Indian retail banking business holds immense potential and based on this discussion
about the market, the competition and the clients existing core businesses and strengths, I’d make a
favourable recommendation. The regulatory restrictions exist but the presence
of numerous other international banks like HSBC, Standard Chartered Bank, Citibank; I believe the
opportunities surpass the threats. Also, I might sound too pragmatic but given the pace of India’s
liberalization and development, I would definitely expect the regulatory restrictions to get relaxed in
the near future.
2015-16
A UK based banking giant wants to enter the Indian market. They have hired you as a consultant to
guide them with this decision and advise them on various aspects of this move.
Foremost, I’d like to know more about the client to evaluate their entry into the Indian market. Is
the client an investment bank or a retail bank?
The client is into Universal banking i.e. they have both investment and retail banking arms.
Can you tell me more about the core strong business areas of the client?
The client has a strong presence in the retail banking business. It is the market leader in retail
banking in UK, Belgium, Netherlands, Luxembourg, Germany and Austria. Personal loans and
business loans for small and medium enterprises has been a big driver of its growth globally.
Alright, in that case, I believe that the client should probably enter the Indian market with an initial
focus on retail banking. The client clearly has a lot of expertise in this segment and can efficiently
leverage on its strengths to make an impact in the Indian market. However, I’d also like to look at
the Indian market before making this recommendation and first gauge whether entering the Indian
market in itself makes good business sense.
Okay, that sounds reasonable. How would you ascertain the attractiveness of the market?
Foremost, the market should have attractive growth prospects in the near future. Can you help with
an estimate of the growth projections in the Indian retail banking industry?
The retail banking industry is booming ever since the liberalization of the economy was initiated.
The industry is expected to grow at a CAGR of 28% to touch a figure of INR 9,700 billion by 2010.
The industry shows quite promising growth prospects and definitely looks attractive for the client to
enter. Can you tell me something about the degree of competition in the industry?

UK based banking giant wants to enter Indian market. Objective is to asses the market and to advise an entry strategy
New Market Entry - Retail Banking
Approach/ Framework
Interviewee Notes
client industry and core
competencies
• Questions on market trends
to understand future
prospects of the industry
• Assessed the competition by
seeking information on
existing players in the
market
• Touched upon regulatory
issues in the market
Broad Approach:
• Covered four major
aspects such as target
industry segments and
growth prospects,
competition, client core
competencies, Entry barriers
Case Facts
•Client into universal banking i.e.
both investment and retail banking
•Market leader in retail banking
business in UK, Belgium,
Netherland, Luxembourg, Germany
and Austria
•Client has core competencies in
personal and business loan for
small and medium enterprises
•CAGR of retail industry is 28%
•Highly competitive industry with
presence of public, private and
foreign banks
2015-16
New
Market
Entry
Vision
Goals
Objectiv
es
Customer –
New
Market
Segments
Needs
Profiling
Size &
Growth
Client’s
Target
market
share
Product
Customer
Expectation
Available
Products
Company
Product
Offerings
Resources
– Capital,
Technology
& Labour
Industry
SWOT
Analysis
Barrier to
Entry/Exit
Our
Estimate
of
Market
Share
Identify
Gaps of
above 2 Our
Strengths &
Strategic
Assets
Market
Share
Competit
ors &
Share
Entering
Strategy?
If Yes,
How?
Start
from
Scratch
Acquisiti
on
Joint
Venture
No
Recommendations
• As the core competency of client is retail banking, they should first focus on leveraging that in Indian market
• Competitors largely focus on loans to large scale enterprises, Client can leverage their core competency by providing loans to small and medium scale enterprises
• Enter the market focusing on retail banking and leverage expertise on personal and business loans for small and medium enterprises
Interview Summary
Identified opportunities in the target market, mapped it to the core competencies of client. Assessed competition and suggested focusing on services which does not majorly overlap with
competitors.
After making a recommendation to enter to the market always suggest a full blown strategy on how to establish in the market, how the client should attract the customers, additional services to
mitigate competition etc., This will further strengthen your recommendation.

New Market Entry - Diagnostic Chain - Interview Transcript
Interviewer: A diagnostic laboratory chain based in America wishes to enter the Indian market.
What are the factors which you would look into in order to advise them?
Candidate: Before I start, I would like to know more about the kind of operations this lab
undertakes. For instance, is it a general-purpose health laboratory or does it specialize in certain
areas of health?
Interviewer: Well, it basically tests patients’ blood and urine samples for diseases as wide-ranging
as cancer, AIDS, diabetes, hepatitis etc. So you can refer to it as being fairly general in its
operations.
Candidate: And what is the nature of technology used in the labs?
Interviewer: They use the latest technology, the very cutting-edge.
Candidate: Okay. And lastly, what is the modus operandi of these labs by way of getting clientele.
Do they advertise or are they prescribed to patients by doctors in hospitals when the former need
tests to be performed?
Interviewer: These labs are fairly high-end and use the latest technology. So the main source of
revenues from us is the hospitals which recommend patients to us.
Candidate: Okay. To start my analysis, I would try and look at the nature of health services
industry in India and compare it what exists in the United States. In the course of so doing, I would
need to examine and compare the demographics, purchasing power and health infrastructure of
the 2 countries, amid other factors. Does that sound okay to you?
Interviewer: That sounds right. All I want from you is an enumeration of the various factors you
would want to consider, just that.
Candidate: Okay. In keeping with what I said just now, I would like at the following. First, I would
look at the kind of market India possesses as far as diagnostic laboratories are concerned. In
relation to this, I would divide the market into urban and rural markets. In urban areas, I would
examine the kind of labs which currently exist and the nature of clientele they cater to. I would try
and explore how the patients are recommended to these labs viz. is it by the hospitals/doctors or
is word-of mouth ‘publicity’ important.
Interviewer: Okay. What other things?
Candidate: I would also look at prevailing competition from the point of view of the nature of
services that they offer. Such analysis will help in figuring out the competitive advantage our client
enjoys by way of tests not performed by other labs. Also, it would be important to find out about
the range of incomes we would cater to. For instance, we could depend on high volumes based on
low margins or on high margin low volume based services. While in the former, specialized
services would not be required and the client’s core competencies would not be the revenue-
generators, the high fixed costs of opening labs makes me believe that a high volume model may
in fact be feasible. On the other hand, the lab could service high-end clientele and use its
expertise in health matters relating to ‘rich’ and upwardly mobile lifestyles.
Interviewer: That sounds interesting. Tell me something more about the fixed costs and other details
the company should consider before launching services in India.
Candidate: Well, the sourcing of the technology will have to be thought of, as also the regulatory
regime regarding investment in health infrastructure in India. Tie-ups with big hospitals will need to
be explored as the first step toward gaining a foothold in the diagnostic laboratory industry, since
trust would be of paramount importance when it comes to health-related matters. Subsequent to that
of course, the client may want to extend operations to capture higher volumes.
Interviewer: What about rural areas?
Candidate: In rural areas, there is huge scope for such labs because of two reasons. One- the large
number of people residing in rural areas. Two, the huge investments that rural health-care has seen in
the last few years. However, there are certainly problematic issues as regards operating a diagnostic
laboratory in the rural areas. Firstly, for such labs to be successful, strong backward and forward
linkages with key infrastructural elements covering health as well as other fields are required. For
instance, if there are no functioning hospitals, the labs will be of no use to patients.
Similarly, the sourcing of technical equipment, medical supplies etc. to labs requires well-functioning
roads, communication networks etc. Secondly, and perhaps most importantly, the nature of health
services which would be in demand may be very different from that of the services demanded in
America.
Interviewer: Different in what way?
Candidate: Typically, the nature of health ailments people in rural India will face will be very
different from that of those faced by Americans because of the vast difference in lifestyles. So, the
client will need to gauge if it is capable of catering to these widely different needs in a cost-effective
manner.
Interviewer: Good. That will be all.
2015-16

Client wants to enter into Indian Diagnostics space. The objective is to analyze market in terms of cultural, regulatory and customer preparedness
New Market Entry - Diagnostic Chain
Approach/ Framework
Recommendations
• This case did not have a definite solution, more of capturing factors to be considered before entry. Candidate did a good job to capture most factors in terms of influencers, purchase
frequency, market segments willingness to pay.
Interview Summary
The interviewer was happy with the overall analysis. But the candidate could have consider all possible solutions.
• Niche positioning or acting as technology partner with existing players or hospitals could have been considered as an entry point
• Always come up with all possible solutions and eliminate based on feasibility
• Try to back up the entry strategy with cost benefit analysis
• The candidate could have given an high level entry strategy and idea of implementation which would have added more value to his arguments
Interviewee Notes
• Identify current client
location and market
client industry and target
market
• Understand technology,
operations, market
positioning
• Questions on purchase
behaviour to understand
customer behaviour
Broad-approach
• Considered 4 different
buckets to understand
market dynamics,
competition, entry strategy
and financial strength
• Identified purchase drivers –
Price and availability
• Analysed competition and
demography of customers
• Understand cost structure
• Study mass market vs niche
playing position
• ID cost structures & BEV
Case Facts
• Client is cutting edge latest
technology in the US
• Tests blood and urine samples for
diseases – Cancer to Aids, hepatitis
etc.
•Mass player in blood test, no
niche as such
•Rely on hospitals to promote
testing and acquire customers
2015-16
New
Market
Entry
Vision
Goals
Objectiv
es
Customer –
New
Market
Segments
Needs
Profiling
Size &
Growth
Client’s
Target
market
share
Product
Customer
Expectation
Available
Products
Company
Product
Offerings
Resources
– Capital,
Technology
& Labour
Industry
SWOT
Analysis
Barrier to
Entry/Exit
Our
Estimate
of
Market
Share
Identify
Gaps of
above 2 Our
Strengths &
Strategic
Assets
Market
Share
Competit
ors &
Share
Entering
Strategy?
If Yes,
How?
Start
from
Scratch
Acquisiti
on
Joint
Venture
No

Growth strategy cases are generally open ended and have enough room to test the candidate for both creativity and comprehensiveness of
approach.
Growth Strategy - Overview
2015-16
Revenue Growth
Increase revenue per
customer
Increase volume per
customer
Cross-selling
Loyalty programs
Bulk Discounts
Increase price
Increase number of
customers
New markets
New geographies
New customer segments
New product launches
Existing markets
Improve marketing
Improve access / distribution
channels
Framework summary
The growth in revenues is broken down into growth in revenue/customer and
number of customers and then further methods like increase of prices, new
products, new geographies etc are utilized to achieve the desired growth
Tips
• Always ask probing questions immediately around time-frame, and
quantification of impact. E.g. If the case interviewer states “XYZ wants to
increase it revenues quickly.”
• The first questions should be “What magnitude of increase is being
envisaged?” and “What is time-frame to achieve this impact?”
Key Questions
• What are the major revenue streams, and what percentage of the total revenue does
each stream represent?
• Does anything seem unusual in the balance of the percentages for this firm compared
to the industry?
• Have the percentages changed lately?
• What are the companies trends in terms of revenue over the last 3 years?

Growth Strategy - Telecom Market - Interview Transcript
The client is a telecom service provider and wants to grow in a saturated telecom market. How
would you go about this?
I would like to start by understanding the telecom market in India, looking at the revenue drivers
and advise the client on which ones he could use. I understand that the telecom sector works by
hiring its services from tower operators and then use their own brand name and services to
generate revenues.
Interviewer: True. Our client too hires such service at market rates.
Okay. Then I shall explore the meaning of saturated market. Has the client explored all
geographies? Like the whole of rural market? I recently read that we have about 680 million
telecom connections. So, I believe there is still some untapped market to explore.
Right. There is an untapped market. Let us go on and say the rural market has been penetrated
to the extent possible and they have probably done what they could in that respect.
Okay. So assuming a saturated market, we should look at increasing revenue from existing
consumers. We could analyse the existing calls being done and could think of schemes like STD
call rate packages, local call packages, local and STD SMS packages that suit to the area to
increase per user usage. The idea would be to have lower rates more than compensated by
higher usage.
Good, what else?
We could look at various value-added services like revenues through internet services on
mobiles. Having different plans and offering better speeds, we can get more consumers to use
internet on their mobiles. Also, with 3G technology, mobile internet will surely be a huge source
of revenues.
Good. Anything else?
Also from games and applications. There are many businesses coming up in the area of mobile
gaming and product development of applications. We could buy them and use them as sources
of additional revenue.
Okay, thanks for the inputs. We will now move to the next interview. Thanks for your time.
2015-16

The client is a telecom operator in India and wants to increase his revenues and grow in this saturated market. What would your
recommendations be?
Growth Strategy - Telecom Market
Approach/ Framework
Recommendations
• Client needs to increase revenue from existing customers which can be done through analyzing services like STD calls & SMS packages to increase usage/customer
• Offering value added services like high-speed internet services, 3G could be a huge source of revenue
• Generate additional revenue sources by buying businesses concerning mobile gaming and application development
Interview Summary
This is a revenue growth case where interviewee should eliminate the option of increasing market penetration by asking directed question about the meaning of a saturated market in the
beginning itself. This tests candidate’s ability to quickly come up with new methods of revenue growth in a saturated market.
Observations/tips/Suggestions
• Candidate should have clarified upfront the potential targets and time period for revenue growth
• Increasing revenue by expanding in new geographies could have been discussed by asking the client’s objective of growth in the beginning as pertaining to just India or other geographies
• Multiple options for increasing usage/customer s could have been mentioned in addition to just mentioning analysis of STD calls and SMS packages
Interviewee Notes
• How does the telecom
market in India is
performing? Is it growing?
• What are the possible
revenue drivers for the
client?
• What is meant by saturated
market? Maximum
penetration or saturation in
economy or any other
factor?
• Rural market has been
penetrated to the maximum
extent
Case Facts
• Client operates by hiring services
from tower operators and
provides various services to earn
revenues
• Rural market has been penetrated
to the maximum extent possible
2015-16
Increase
Revenue
Increase
revenue/ user
Increase
usage/user
Cross-selling
Loyalty
programs
Bulk and other
Discounts
Increase
price
Increase # of
customers
New
markets
New
geographies
New customer
segments-
New product
launches
Existing
markets
Improve
marketing
Improve
channels
Tying up with mobile
manufacturers and so on
Loyalty benefits, free talk-time,
discounts etc
Discounts on high usage, benefits
on referrals etc
Rural/urban India, lowly-
penetrated states, outside India
etc
Age based(Youth, old), Usage
based: Loyal vs first timers etc
Value added services, games and
applications, internet etc
Celebrity endorsements,
innovative ad campaign etc
Strategically located stores, better
availability in existing stores

Growth Strategy - Boiler Company - Interview Transcript
You’ve been approached by a boiler company and they want your help in devising a growth
strategy.
I’d like to confirm that the company wants to increase its sales drastically and preferably its
profits too.
That’s right.
Before we take a look at the company specific information, I would like to know more about the
industry – current trends, any new technological advances, nature of competition etc.
Boiler companies typically have a line of products based on capacity and fuel used. There are no
new advances in recent times. 80% of the market is organized and main customers are the
thermal power plants.
A company can grow either by expanding market share in its existing market, entering new
geographical markets, coming out with new products or by acquiring another company. I would
like to know more about this company. What this company’s products are? Who are its customers
are? Where does it operate? Its access to cash/financing resources? Its competitors?
It’s a medium size firm – about $100 MN in sales, operates primarily in India. It’s the biggest player
in the organized segment which is approx. 80% of total market. Its main customers are thermal
power plants, etc. Products can be classified on the basis of capacity and fuel for the boilers. It
doesn’t have much cash or technology. It’s a midget compared to global players in the same
industry
Well, not being cash-rich restricts the firm from exploring various growth options. For instance,
new product development seems to be out of question given no access to technology advances.
Similarly, exploring new geographical markets, even overseas markets, would be out of reach
presently as there is dearth of capital. Acquiring another company is a possibility if synergies exist
that can to offer significant benefits out of the merged entity. But, we also must keep in mind the
results realization lag in case of a merger. Again, M&A activity presently does not seem feasible.
Sounds reasonable
Now that we have eliminated some of the options, I would like to focus on current market and
consolidation of the existing product line. Specifically, I would like to know the individual products on
offer, margins to be made on each of them and their individual growth potential.
I think you have figured it out. What would you like to suggest to the company?
In my opinion, company should focus on the products which promise growth and also offer higher
margins. Possibly, they are currently providing a standard capacity type or a fuel type to most of the
customers. They should rather look at the individual customer needs and design their offer
accordingly. This benefit to customer would also enable them to command a greater margin on each
product sold. Sales force incentives could also be aligned with customer-centricity in terms of correct
product requirement assessment and supply. In short, focusing on the right product is the key for
growth for our client.
I think the analysis is sufficiently thorough. We can stop here. Thank you.
2015-16

You’ve been approached by a boiler company and they want your help in devising a growth strategy.
Growth Strategy - Boiler Company
Approach/ Framework
Recommendations
• Company should focus on the products which promise growth and also offer higher margins
• look at the individual customer needs and design their offer accordingly
• Sales force incentives could also be aligned with customer-centricity in terms of correct product requirement assessment and supply
Interview Summary
This is a revenue growth case where interviewee should give a broad framework with different options before filtering down to the recommended option.
• Candidate should have clarified upfront the potential targets and time period for revenue growth
• Candidate should have broadly tested each option with the interviewer instead of simply mentioned them all.
Interviewee Notes
• Industry analysis – current
trends, any new
technological advances,
nature of competition etc.
• Understand client business
• Low on cash – restricts new
product development, M&A
not possible
Case Facts
• 80% of the market is organized and
main customers are the thermal
power plants.
• Medium size firm – about $100
MN in sales, operates primarily in
India. It’s the
• biggest player in the organized
segment which is approx. 80% of
total market. Its main customers
are thermal power plants, etc.
Products can be classified on the
basis of capacity and fuel for the
boilers. It doesn’t have much cash
or technology. It’s a midget
compared to global players in the
same industry
2015-16
Increase
Revenue
Increase
revenue/ user
Increase
usage/user
Cross-selling
Loyalty
programs
Bulk and other
Discounts
Increase
price
Increase # of
customers
New
markets
New
geographies
New customer
segments-
New product
launches
Existing
markets
Improve
marketing
Improve
channels
Machines/devices across value
chain
Discounts for repeat purchase for
new plants
N/A
New markets beyond India
Diversify into unorganized
segments
Customized and tailored solutions
Highlight USP in markets
Build relationships with purchase
managers

In a new product entry case, a company is likely to aim for introducing a completely new product in a market or expand its existing product’s
reach in a new geography. A interviewee is expected to first align on the product’s viability to succeed in the market followed by identifying the
correct price point and target market and finally recommend levers that can drive product success in the market.
New Product Entry - Overview
2015-16
New Product
Introduction
Initial Investment
Profit and Break
even point
Self Financed
Equity
Financed
Production
challenges
Marketing
challenges
# Units sold Price per unit
Variable cost per
unit
Fixed cost
Establish Value
chain
Debt
Financed
Distribution
Challenges
Framework Summary
A company can either introduce a product in a market
where it has no presence or can extend product line in its
current market. Launching a product in a market with no
presence pose not only operational challenges but
viability of product’s success in the market also needs to
be explored. Extending the product line in current market
may require looking into cannibalization while doing a
feasibility check of product in the market and how the
current value chain can be leveraged in making the
product available to its customers.
Tips
• Clarify objective, especially focus area of a new
product entry case
• New product entry cases might involved multiple
issues linked to it and hence both depth and the
breadth needs to be covered for exhaustiveness
Key Questions
• What is the purpose of the new product
introduction – capture increased market
share, entry into a new business line, profits,
build brand?
• How big is the market for the product?
• Segments in the target population?
• What is the price at which the product has
been introduced?
Initial Investment
• What is rate of interest?
• Do sales cover the interest expense?
• Expected period of payback?
Establish Value Chain
• Are there any barriers to entry into the new areas?
• Number and type of competition? Market share?
• For distribution etc. do you do it in-house or contract it
out?
Profit or Break Even Point
• Expected time before break even? Should not be too long
a time

New Product Entry - Anti Smoking Pills - Interview Transcript
The client is in the business of making anti smoking pills - the way we have those patches and
lozenges in the market to curb the urge to smoke. The client wants to sell it at a premium price. You
have been hired to find out if the product can be introduced in a country like India - and if so - what
is the expected target market, market share and a feasible price at which the drug should be sold.
I would like to confirm if I have understood all the critical aspects of the client’s situation. Our client
is in the business of making anti-smoking pills that reduce the urge to smoke for smokers. We need
to do see if the product is feasible to be launched in India and evaluate the market characteristics
such as size and client’s share based on the price.
That’s right. Now that you’ve understood the situation well, how do you propose going about the
solution?
Since this is a new product launch, I would like to structure my discussion around the product
characteristics (development and customization) for the Indian market and then move on to the
launch (competition, distribution and promotion) part of the case.
This sounds fine to me. Also, please note that this product is not entirely new; it has been
introduced in other countries already.
Ok, that experience should definitely help us. To start with, can you tell me something more about
the product? How is it different?
Unlike the lozenges or patches, this product is completely nicotine free - it is 5 times more effective
as proved by lab results and 50% of the test results responded to the pill (which in this industry is an
extremely high number thus indicating success). Moreover, it is a drug that cannot be sold over the
counter – it requires a prescribed dosage given by the doctor. It is to be taken for 3 months daily, 3
times a day.
That is good. It gives us the advantage to position our product as superior due to the higher efficacy
of treatment. I would like to know take up the competitive scenario next so that we can decide the
price before determining the overall market size.
That’s a fair point. So, there is no similar product in the market. Cheaper products like lozenges exist
but they contain nicotine and sell for Re. 1 per unit.
What are the other countries where the product has been introduced? How receptive have the
customers been in those countries?
The other countries have smokers who are quite similar to the Indian consumers. The product has
been quite a success.
Ok, this means that the target audience will be receptive to the product and we can assume that
there is a strong market for the same. I will now proceed with the estimation of the price and
market size. There are two ways that we can price a new product in a non-competitive market: Cost
based and ‘willingness-to-pay’ based. In the first, I would calculate the cost to company and charge
a margin on the same while in the second case; I would calculate the propensity of the consumer to
pay for this drug. This would vary with my target segment chosen. Ideally, we should be able to
calculate the optimal profit case by considering the trade-off in sales volume vs. price for various
price points. The solution will also be influenced to an extent by the growth rates of the different
target segments overall, say movement of people to upper-class from lower-middle class.
Hmm… that is good. In our case, let us assume we did this and came up with Rs. 8 per unit. You
think that sounds reasonable?
I think a price of Rs. 8 per pill is feasible because of the lab results - people will be convinced that it
is a medically prescribed drug and since it is a pre-scheduled dosage for 3 months, results are
guaranteed. We can also stress on the on nicotine bit and indirectly position this as a life saving
drug.
Ok, let’s estimate the market size assuming we decide to price it at Rs. 5 per unit.
Let’s take Delhi as a base case. Population: 150 lakh. Target segment: 40% of them smoke * 20% of
them would want to quit smoking * 75% can afford (Rs. 8 * 3 * 90 = Rs. 2160 drug to quit) = 9 lakh
people or INR 9 * 2160 ~ INR 200 crores. We can now assume that this drug will reach out to 25% of
the population across India (urban + rural since its effective and one-time payment to quit
smoking), which means the total market is 200/150 * 0.25 * 10,000 lakh = INR 3,333 crores.
Very interesting. What will drive the market growth our market share?
Candidate: The market growth rate will be affected by the sales and distribution coverage,
willingness of people to quit smoking and addition of new smokers who would want to quit after
sometime. We can look to capture about 80% of this market eventually, assuming no major
competitor enters the market, which can be prevented by IPR support. Since this is a prescription
drug, the bulk of the promotion costs in this industry are in targeting the doctors and chemists via
direct sales agents or Medical Representative to convey the pros and cons for them to a) prescribe
the drug and b) keep it in their pharmacies. This will drive our market share from the potential
market size.
Good. What about the other 20%?
Candidate: I am assuming that the remaining 20% will comprise of smokers who are unwilling to
quit smoking (10%), perceive the price to be high (5%) or are not aware of the product (5%). This
percentage can decrease as we move further in the product life cycle and the product becomes well
established through marketing and promotion efforts.
Good. Any other costs/concerns that you would like to address?
The training costs for the direct sales agents will also be critical as this is a new product and local
agents would need an in-depth understanding of the product. No. of sales people can be calculated
by total workload method: Assuming Doctor/Population ratio and say 3 doctors per day and repeat
visits every 2 months; and Chemist/Population ratio and 3 chemists per day and repeat visits every
15 days. The supply chain will have to be considered - the warehousing, distribution network, retail
chains etc. We can perform the cost benefit analysis for using middle distributors v/s direct
distribution.
Good, I think we have covered the different aspects of the case. Thank You.
2015-16

The client is in the business of making anti smoking pills - the way we have those patches and lozenges in the market to curb the urge to smoke.
The client wants to sell it at a premium price. You have been hired to find out if the product can be introduced in a country like India - and if so -
what is the expected target market, market share and a feasible price at which the drug should be sold.
New Product Entry – Anti Smoking Pills
Approach/ Framework
Recommendations
• Price point should consider both customer’s willingness to pay and product’s incremental value proposition over existing products in the market
• IPR/ Patenting the drug can prevent competitors to enter market and facilitate capture of market share
• Spend more on training the medical representatives and direct sales agents to push the product to the doctors who in turn will prescribe it to the patients
Interview Summary
This is new product entry case where the interviewee should not only check products success viability in market but also touch upon operational issues
• Marketing of the product can be briefly discussed since the product charges a premium price to its customers
• Long term product goals and ways to improve product penetration across its lifecycle could have been discussed
• Candidate should have clarified upfront if the product has already been launched in other countries
Interviewee Notes
• New product launch – Anti
smoking pills
• Country - India
• Premium product- requires
premium price
• Product characteristics
(suitability for Indian
market) & Product launch
(competition, distribution
and promotion)
• How is the product different
from existing? products
• What is the competitive
scenario in the market
• Product has already been
introduced in some
countries
Case Facts
• Client is in the business of making
anti-smoking pills
• Client wants premium price for its
product
• Client wants to find product’s
potential in India – target market,
market share and feasible price
2015-16
Introduce Anti-
smoking pills in
India
Initial
Investment
Profit and
Break even
points
Distribution
challenges
Product
marketing Potential
Revenue
Cost
Establish value
chain
Target market
size
Price
The drug cannot be sold as OTC and would
require prescription. Medical
representative and direct sales agents need
to be hired who can push the product to the
doctors who in turn will prescribe it to the
patients.
Client needs to invest in training of its sales
reps so that they can convince doctors with
product’s value proposition
Filters Number projections
Population base (Delhi) 150 lakhs
% population who smoke
% smokers who want to quit
% quitters who can afford the product
40%
20%
75%
Potential customer base
Potential revenue
150*.4*.5*.75 = 9 lakhs
9*2160 = 200 Cr
Revenue projection across India (25%
penetration)
200/150*0.25*10000 =
3333 Cr

New Product Entry - Automobile Service Station - Interview Transcript
You are having tea with Mr. Ratan Tata. He has just returned from Germany where he saw third
party car service stations which were doing very well. So, he is thinking of opening a chain of such
stations in India. You need to give him your thoughts and make a pitch from our side for helping
him with the project.
I’m not very sure of what you mean by third party service stations. Can you explain a little?
To service a car there are service stations. They can be authorized stations like the chain that
Maruti has or they can be local garages. The third type, which is currently missing in India, is an
independent chain of service stations which will service any brand. These are third party service
stations
Ok. This is a new business that Tata would want to enter. I’d like to look at a few things while
considering the new venture :
•Tata’s final aim - do they have a target profit /market share/return on assets as their target from
the venture
•Market scenario – growth & size, competition
•Tata’s capabilities – financial capability, expertise in area, synergies with other businesses
Tata is a big & profitable company, they want as high profits as possible from the venture. Also,
they have no constraints with regards to finances. They build automobiles as you know and have
authorized service stations for their automobiles.
So, the aim of Tata is high profits and they have sufficient finances and expertise in the
automobile area. I’ll go on to look at the automobile maintenance market. Currently in India there
are 2 kinds of garages – the local ones and authorized service stations. So, when we enter the
market, would we be servicing all kinds of brands and providing a full range of services?
Yes. All brands and full range of services.
We would need to differentiate ourselves from the 2 kinds of competitors that we have in order
to get customers.
Ok. How would you do that?
I’ll look at why a customer goes to a service station and why he chooses a particular station to go
to. A car would be taken to a service station for regular check-ups/services, in case of an accident
and maintenance when it breaks down.
Ok
Now when an owner chooses a service station he would want :
•Quality – In terms of genuine parts if replacements are done, trained mechanics, the car being
treated properly, delivery on time
•Cost – He would want the service to be as cheap as possible
•Convenience – The service station should be close or should have a pick & drop service.
There would be a segment of customers who would lay a lot of emphasis on cost while another
segment would lay emphasis on quality. In case of an accident or break-down convenience would
play a big role. Local garages will have low quality and low cost while authorized service stations
will have high quality and high cost. Also, local garages are generally more in number so would be
more convenient to reach in most cases.
Ok. Now I want you to make a grid of the dimensions that you’ve mentioned and figure out where our
competitors lie and where we should go.
(Starts drawing a 2X2 matrix)
Let us club convenience with quality.
We’ll just analyze the situation based on 2 parameters. Now, Tata wants to start a third party chain of
service stations which will serve all brands. If Tata targets low quality, local garages will beat them
since these garages can service all brands and charge very low unbeatable prices. Also, they would be
built at strategic locations which Tata may not be able to acquire, coming late into the market. On
comparing Tata stations with authorized service stations, Tata could stand a chance. They could
ensure quality by sourcing parts from manufacturing companies and employing well trained
mechanics. Since such a service station will service all brands it will be a convenient place to come to
for high quality services. However, the price charged will be high.
Do you think anyone will come to such a service station when they can go to a Maruti or Hyundai
authorized service station?
In India a majority of cars are Maruti and Maruti has a very good chain of service stations which are
convenient to reach and high quality. Hence, Maruti cars will definitely not come to Tata’s stations.
Other brands like Hyundai would come since their service stations are few and far apart. If Tata offers
the same quality at the same price; it might be cheaper and more convenient for consumers if Tata’s
chain has numerous stations at strategic locations.
Maruti has almost 50% of India’s car market share. Now do you think it is beneficial to set up Tata’s
third party service chain?
Owners of other brands will prefer to go to their authorized service stations as they would be more
trusted. And given such a lopsided market in favor of Maruti, it will be difficult for us to compete with
Maruti directly. So, the number of cars coming to Tata’s stations might be too low for the venture to
be viable. But, if there are expectations that many new brands will enter India as some already have,
then Tata’s venture could be viable given that these firms would not want to open a service chain of
their own due to small numbers and newer vehicles could mean that the local garages might not be
well-equipped to deal with all kinds of problems with the vehicle.
What would your final recommendation be?
My final recommendation would be to not start such a venture currently since Tata would not be able
to beat competitors on any dimension - cost or quality. However, in the near future this could turn
sustainable so an eye should be kept on this market.
Ok. Thanks.
2015-16

Here are some suggestions to reduce costs in the billing process:For paper:- Use thinner paper which reduces paper consumption and cost. Ensure print quality is not compromised. - Negotiate better rates with paper suppliers by increasing order volumes or committing to longer term contracts.For printing: - Explore outsourcing printing to specialized vendors who may offer economies of scale.- Invest in more efficient multi-function printers which can print multiple bills in one go.- Consider centralized printing instead of local printing to leverage scale.For dispatch:- Offer e-billing and auto-debit options to customers to reduce physical mailing. Provide incentives for switching.- Negotiate better postal rates

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