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