Casebook of IIM bangalore which was free

Casebook

1. ICON –ConsultingClub
IIM Bangalore
IIMB Casebook and
Industry Reports
2022-23
Volume 12 (b)
ICON, IIM Bangalore 1

2. Copyright
©2023,ICON–ConsultingClub,IIMBangalore.Allrightsreserved.
Thisbookorpartsthereofmaynotbereproducedinanyform,storedinanyretrievalsystem,ortransmittedinany
formbyanymeans–electronic,mechanical,photocopy,recording,orotherwise–withoutpriorwrittenpermissionof
ICON–ConsultingClub,IIMBangalore.Forpermissionrequests,[email protected].
ICON, IIM Bangalore 2

3. Foreword
ThiscasebookdocumentstheinterviewexperiencesofthestudentsofIIMBangalore.Theaimofsharingthese
experiencesistoinformstudentsaboutthecaseinterviewexperiencesofpastbatchandtohelpthempreparefor
theirplacementsaccordingly.Theexperienceslistedbelowarenotnecessarilythebestortheonlywaytohandlecase
interviews.Theyonlyservetogivestudentsanideaofwhattoexpectwhentheywalkintoacaseinterview.Every
individualcouldhavehis/heruniquewayoftacklingconsultinginterviews,eachofwhichcouldbecorrect.
Thisdocumenthascontributionsfromstudentswhoappearedforcampusinterviewsconductedbyconsultingfirms
duringthefinalplacementprocessoftheBatchof2020-22andsummerplacementprocessoftheBatchof2022-24.
Theinterviewexperienceshavebeensortedbasedonthetypeofcase,consultingfirm,difficultyandtheroundinthe
selectionprocess.
Inthisedition,toprovideholisticpreparationforthecaseinterviews,wehaveincluded18industryreportsaswell.
Theaimofthesereportsistoprovideabasicunderstandingoftheindustry'svaluechain,keyperformancemetrics,
currentmarkettrendsandmajordriversforcost,revenueandgrowth.Eventhoughhavingindustry-specific
knowledgeisnotmandatoryforcasesolving,havingabasicindustryunderstandinghelpstacklecaseinterviewsbetter.
TeamICONwishesyoutheverybestforyoursummerplacements!
ICON, IIM Bangalore 3

4. 4ICON, IIM Bangalore
Contents -I
S.NoParticularsDifficultyCompanyPage
I.Introduction7
II.Profitability Framework11
1Retail StoreEasyBain13
2Private SchoolEasyBain16
3Airport ProfitsEasyBain19
4Restaurant OwnerModerateBain21
5Biscuit ManufacturerModerateBain24
6Travel Agency -IT InfrastructureEasyKearney27
7Hair SalonModerateKearney30
8Grocery Retail ChainModerateKearney32
9Hedge Fund LLPModerateKearney34
10Pump ManufacturerChallengingKearney37
11Bike Manufacturer in NigeriaModerateStrategy&
ME40
12Beauty Product ManufacturerModerateAccenture42
13Retail Jewellery ChainModerateAccenture44
14Non-Profit Church OrganizationChallengingAccenture46
15Infra & Construction CompanyChallengingMcKinsey48
III.Market Entry Framework51
16EdTech Business StrategyEasyMcKinsey53
17Senior Citizen Business IdeaChallengingMcKinsey55
S.NoParticularsDifficultyCompanyPage
18Gig Workers Business ModelModerateBCG58
19Multibillion Dollar Textile
ConglomerateChallengingBCG61
20E-Commerce (Furniture Segment)ModerateKearney64
21Home Textile ManufacturerModerateKearney66
22Telecom Operator in the 80'sModerateStrategy& ME68
23After School Tutoring ClientModerateLEK Consulting71
24Uber for HelicoptersChallengingGEP74
III.Pricing Framework78
25Factory OwnerEasyBain79
26New Medicine LaunchModerateMcKinsey81
27Autism Digital Therapy ProductModerateMcKinsey83
28Tooth Brush ManufacturerModerateAccenture85
29Coca Cola PricingModerateGEP87
IV. Growth Framework90
30iPhone ManufacturerEasyBCG92
31Increasing WhatsApp Pay ShareEasyBCG94
32Express Logistics CompanyModerateKearney96
33Fantasy Sports CompanyModerateBain98
34Pharmaceutical CompanyModerateAccenture100
35E-Commerce ClientModerateStrategy&102

5. 5ICON, IIM Bangalore
Contents -I
S.NoParticularsDifficultyCompanyPage
36French Newspaper DistributorModerateStrategy& ME105
37Ministry of RailwaysChallengingStrategy& ME108
V.M&A & PE Cases111
38Healthcare FacilitiesModerateBCG
39Army Cantonment HotelModerateAccenture
40Pre-Kindergarten School
InvestmentModerateMcKinsey
41Coal Mine InvestmentChallengingMcKinsey
VI.Unconventional Cases121
42Firing Strategy for Twitter
EmployeesEasyBCG122
43Cancellation Rates of a Cab
AggregatorEasyBCG124
44Transport Infrastructure
ImprovementEasyADL127
45Construction CompanyModerateBain131
46Indian Football FanbaseModerateBain133
47Consulting Firm ExpensesModerateKearney136
48Boiler Manufacturing CompanyModerateStrategy&139
49Football MatchModerateStrategy&141
50Women Driving in SaudiChallengingStrategy& ME143
VII.Guesstimates145
S.NoParticularsDifficultyCompanyPage
51Squash BallsEasyBain146
52Fantasy Sports AppChallengingBain148
53EV Market in IndiaModerateMcKinsey151
54Snow Melting LiquidModerateMcKinsey154
55Tennis Balls ConsumptionModerateStrategy&156
56Global AircraftsModerateBCG158
57Perfume RetailerChallengingAuctus Advisors160
S.NoIndustry ReportsPage
1.Airlines Industry163
2.Automobile Industry 164
3.Cement Industry165
4.E-commerce Industry166
5.Financial Services –Asset Management 167
6.Financial Services –Banking168
7.FMCG Industry169
8.Food Processing Industry170
9.Healthcare Services Industry171
10.Hospitality Industry172
11.Insurance Industry173
12.Iron & Steel Industry174

6. 6ICON, IIM Bangalore
Contents -III
S.NoIndustry Page
13.IT & ITeSIndustry 175
14.Logistics Industry176
15.Oil & Gas Industry177
16.Pharmaceutical Industry178
17.Retail 179
18.Telecom Industry180

7. Approach to Cracking Case Interviews
7ICON, IIM Bangalore

8. Introduction –Case Interviews
Case Interviews
vPersonalitybasedques.(5min);Casediscussion(20-30min);Closingques.forinterviewer(2
min)
vKnowyourCVwell→personalityquesarebasedonCVtobreakiceandgettingtoknowyou
vCasediscussionsdon’thaveapredeterminedanswer.Evaluationisbasedonapproach,exercising
judgementsandsteeringthroughtheproblemstatement
vReallifeconsultingproject,thattheinterviewerwasinvolvedin→basisofcasediscussion
vConsultprojectscanvaryfrom2-3monthstoevenayear→condensedintominutesfor
interviews
vProvidedasa3-5statementcaseletintroducingtheclientandproblemfacedbythem
vCanbenumberbasedorstrategydriven;guesstimatescanbeapartaswell
Why Case Interview?
vTest the ability to perform on the job in a similar setup as the case-interview (consult-fit)
vUnderstand thought process of the candidate and capability to make decisions/ prioritize
vPut you under same pressure, like any consult project, to assess your poise, self confidence and
communication skills (interpersonal skills)
vDrawing on personal experiences, if any, can come very handy –appreciated by interviewer
Business Case
ICON, IIM Bangalore 8

9. Introduction –Case Interview Process
Case Analysis
Summary/
Recommendation
Questions for
Interviewer
Case Interview
Question
Developing the
structure
Interview StageWhat to expect?Skills Tested
vInterviewertellsaboutthebusinessproblemandobjective
vAskclarifyingquestions;ensureyouheardthequestioncorrectly
vAskfortimetostructuretheproblemathand
vCome-upwithastructuredMECEapproachquickly
vUseahypothesisdrivenapproachforcasesolving
vAskrelevantquestions,use80-20ruleappropriately
vCasecangetnumberintensive
vSummarizethe case with recommendations backed up by insights discovered
in the case
vOpportunity to show enthusiasmtowards consulting
vAsk relevant, non-generic question
vAbility to listen
and synthesize
vStructured
thinking
vCommunication
vProblem solving
vAnalytical skills
vCommunication
vCreativity
vConcision
vCommunication
vConsulting fit
ICON, IIM Bangalore 9

10. IIMB Profitability Cases
2022-23
10ICON, IIM Bangalore

11. ICON, IIM Bangalore 11
Profitability Framework -Revenue
Profit
Revenue
Selling Price
per Unit
Number of
Units
Supply
Value Chain
Primary
Activities
Support
Activities
Demand
Number of
Customers
Pre ServiceDuring
Service
Firm LevelIndustry LevelMacro
(PESTEL)
Post-Service
AvgOrder
Amount
Order
Frequency
Product Mix
Cost
(What product in the
portfolio; apply 80/20)
If relevant, use industry value chain
SG&A
Infrastructure & IT
Human Capital
Procurement
Manufacturing
Distribution
Post Sales Service
For a manufacturing firm,
use Need, Awareness, Accessibility,
Affordability, Customer Experience
Preliminary Questions
•Clarify objective, quantum of change in
profit and timeline
•Geography -Location of the firm, its
branches
•Business Model –Where does the firm lie
in the value chain? What are its revenue
streams and distribution channels?
•Understand customer segments
•What is the product mix? Any new
differentiation/ change in products?
•What is the competitive landscape?
Revenue = Core & Non-core sources like
Advertisement, Parking, VAS,
Reinvestment

12. ICON, IIM Bangalore 12
Profitability Framework -Cost
Procuring Raw
MaterialsManufacturingDistribution and
StoragePost Sales Service
●Cost of raw materials
●Transportation & Packaging costs
●# Suppliers x Contract amount; Duration
●Plant maintenance
●Idle capacity opportunity costs
●Wastage, wear and tear
●Setup time, cost
●Number of distributors x avgorder amount x frequency of orders
●Transport & Packaging
●Intermediate Storage
●Distributors x AvgDistance from hub x Cost per km
●Number of customers x Frequency of service x cost incurred
●Spare parts, returns, replacements, waste
Research and Development
Financing costs
Branding and Advertising
Human Capital (Capacity x Efficiency x Utilization)
Selling, General & Administrative
Primary Activities
Support Activities
Cost

13. 13
Retail StoreProfitability | Easy | Bain (Buddy)
ICON, IIM Bangalore
Yourclientistheownerofaretailstorewhichhasbeenfacingadeclineinprofits.Youhave
beenhiredtoidentifytherootcauseoftheproblemandproviderecommendations.
Iwouldliketoknowmoreaboutclientbeforeproceeding.Doestheclienthaveonlyone
storeoraretheremoreoutlets?Whereistheclient’sbusinesslocated?Additionally,can
youtellmewhatdoestheclientsellthroughtheseretailstores?
Sure!Theclienthasmultiplestoresbutthedeclineinprofitsisspecifictojustonestore,
locatedinMumbai.Theclientsellsalltypesofclothingandaccessories.
WhereisthisstorelocatedwithinMumbai,ahigh-crowdstreetoramallmaybe?
Yes,thestoreislocatedinafamousmallwhichhasagoodfootfallofcustomers.
Howlonghastheclientbeenfacingthisproblemanddoweknowthequantum?Also,isthe
problemclientspecificorareothercompetitorsalsofacingthisissue?
Theclienthasbeenfacingthisissueforacoupleofmonthsnowandtheproblemisspecific
totheclient.
NowthatIhaveanunderstandingoftheproblem,Iwouldliketobreakdownprofitsinto
revenuesandcostsofthestore.Doweknowifrevenueshavedeclined,costshave
increased,orbothchangedsimultaneously?
Therevenueshavedeclined.
Foraretailstore,Therevenueswouldlargelybefromthesalesmadewhichcanbebroken
downasnumberofunitssoldxpriceperunit.Isitfairtoassumethatrevenuefromvalue
addedserviceswouldnotaffecttheprofitability?
Yes,fairassumption.Wedonotprovideotherservices.Ourpriceshavealsoremained
constantinthelastfewmonths.
Sincenumberofunitssoldhasdeclined,hastherebeenafallindemandoristhereasupply
sideconstraintinmeetingthedemand?
Therehasbeennosupplysideconstraint.
Sincedemandhasfallen,hasthenumberofcustomersreducedortheaveragebasketsize?
Numberofcustomerscomingtothestorehavedeclined.
Sinceweknowthedemandhasgonedown,Iwouldliketoexploretheentirecustomer
journey.Itcanbebrokendownintothreeparts–pre-purchase,duringthepurchase
experience,andpost-purchaseexperience.DoweknowwheretheproblemliesorshouldI
exploreeachindetail?
Let’sexplorethepre-purchasejourney.
Forpre-purchasejourney,wewilltracethecustomer’spathfromthebeginningtothestore.
Thiswillincludethenavigationandsearchofthemall,traveltothemallthroughpublic
(cab,auto,metro)orpersonalvehicles,parkingfacilitiesatthemall,navigationinsidethe
mall(infodesks,escalators,signboards,etc.)andfinallyexploringissuesontheflooron
whichthestoreislocated.
Thatseemslikeacomprehensivebreakdown.Thestoreislocatedonthesecondfloorofthe
mall.Whatdoyouthinkarethepossibleissuesonthefloor?
Issuesonthefloorthatcouldhamperthecustomershoppingexperiencecanbecategorized
intofloorlayout,construction,cleanliness,andstore-frontdisplay.
Whatcouldbetheproblemsundercleanliness?
Essentially,cleanlinessissueswouldincludecleanlinessofthesecondfloor-inparticular,
theareaaroundtheclient’sstoresincethecompetitorsarenotfacingthisissue,cleanliness
atthestorefrontandhygieneconditionsofnearbywashrooms,dustbinsandfoodcourts.
Correct,thewashroomlocatedadjacenttotheclient’sstorehasnotbeenkeptcleanfora
whilenowduetowhichithasstartedsmelling.Thisishavingadirectimpactonthenumber
ofcustomersenteringtheclient’sstore.
Doweknowwhythisishappening?Also,whoseresponsibilityisit,theclientorthemall?

14. 14
Retail StoreProfitability | Easy | Bain (Buddy)
ICON, IIM Bangalore
Thisisthemall’sresponsibility.Theproblemisarisingduetolackofstaff.Thereisnostaff
assignedforthesecond-floorsanitation.Whatdoyourecommend?
Therearetwowaystodealwiththis.Onthemall’spart,themanagementcanclosethe
washroomintheshortrunifitisnotabletomanagethestaffingandinthelongterm,hire
morestaffforthesecond-floorsanitation.Additionally,themall’smanagementcanlookto
rotatetheexistingstafftodocleaningshiftsacrossthefloorsandhence,keepthe
washroomsclean.
Letusassumethatshiftrotationandhiringnewstaffisnotpossibleforthemallrightnow.
Also,theseareoutoftheclient’scontrol.Whatcantheclientdotoimproverevenues?
Theclientcandovariousthingstorecoverthelostsales.Firstly,theycanlookatalternative
channelsofsalelikesettingupawebsiteandsellthroughonlineaggregators.Theclientcan
movethecurrentstoretoanotherfloororwholeotherlocation,ifpossible,inthelongrun.
Currently,theclientcanevenlookintosomenegotiationswiththemallandhireanew
cleaningstaffonitsownexpense.
Great!Wewillwrapupthecasehere.

15. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
15
•The client is a retail store facing declining revenues
•The store is in a mall and the issue is client-specific
•Need to identify root cause and give recommendations to improve profits
•Floor located on the second
floor of a popular mall in
Mumbai
•Client specific issue
•No change in prices or supply
capabilities –customers
coming to the store have
reduced
Retail StoreProfitability | Easy | Bain (Buddy)
•The mall should hire new staff or rotate the current staff across floors
•The foul smelling washroom can be closed in the short run
•The client can look at alternative selling channels like a website, online aggregators or setting up the retail some elsewhere
ICON, IIM Bangalore
Profits
Revenues
Number of units sold
Supply constraintDemand constraint
Number of customers
Pre-purchase
Journey to the mallParkingNavigation inside mallFloor specific issue
LayoutConstructionCleanlinessStore front/ display
During purchasePost-purchase
Average basket size
Price per unit
Cost

16. 16
Private SchoolProfitability | Easy | Bain (Buddy)
ICON, IIM Bangalore
Yourclientisaprivateschoolowner.Theyhavereachedouttoyoutoidentifythereasonfor
decliningprofitinthelastyearandtoturnthissituationaround.
BeforeIdeepdiveintothecaseanalysis,Iwouldliketogetmoreinformationontheclient
andtheircurrentsituation.CanIgoaheadandaskfewpreliminaryquestions?
Sure,pleasegoahead.
Iwouldliketoknowwhatkindofschoolitisandwhereitislocated.
ItisaprivateCBSEboardschoolandhasclassesfromnurserytoclass12.Itisoneofthetop
schoolsinJharkhandandhashugerealestate/campuslocatedontheoutskirtsonRanchi.
Theychargepremiumfeescomparedtomostoftheotherschoolsinthesamestate.
Thankyoufortheinformation,couldyoutellmeaboutthecompetitivelandscapei.e.,other
schoolspresentinthesamearea?Aretheyfacingsimilarissueofdroppingprofits?
WithinJharkhandthereare3otherschoolswelargelycompetewith,andtheyaredoing
finewithrespecttotheirprofits.
Gotit,soIcanassumethisisaninternalclientspecificissueandnotanexternalindustry
widetrend.
Yes,yourassumptionisvalid.
Haveweseenadropinrevenuesinthepastyearorincreaseincostorboth?
Wehaveobservedbotheffects.Let’sfocusondropinrevenuefirst.
Sure, since our client is a school, they will have multiple streams of revenue. Major stream
is student fees. Next if we provide boarding option then boarding/ lodging fees. Next would
be bus/ transportation service fees, daily meals, donation/ endowments. Since it is a school,
I would ignore the revenue from any research grants/ publications. Have we seen a drop in
revenue in any specific stream or multiple streams?
Good analysis. We are seeing a drop in the primary stream that is the fees and by a function
of that a drop in bus and daily meals as well. You can focus on only fees for now.
Feescollectedbytheschoolcanbefurtherbrokendownintonumberofstudentsperclassx
numberofclassesxfeesperstudent.Haveanyofthefactorschangedinthepastyear?
Yes,thenumberofstudentsperclasshasreduced.
Istheschoolfacingsomechallengewithcapacityandhasreducedthemaximumnumberof
studentsthatcanbeacceptedorisitfacingreduceddemandofenrollments?
Thenumberofclasseshaveremainedthesamesohastheintakecapacity.Weareseeinga
decreaseinenrollments.
InthatcaseIwouldtogothroughthestudentjourneytofigureoutwhyhasthenumberof
enrollmentsdecreased.Iwouldliketobreakupthejourneyinto3phases–(Student’s
(Parent’s)decisiontojointheschool(b)Student’stimespentintheschool(c)Postschool
experience.
1.Thedecisiontojointheschooldependsonthelegacyoftheschool,awareness,quality
ofeducation
2.Astudent’stimeinschoolwilldependontheschooltimings,peoples/heinteractswith,
infrastructure,externalfactorsaffectingstudentexperience
3.Postschoolexperiencewillbethevalueaddtheschoolgivestothestudent
Thatisacomprehensivebreakdown.Couldyoutellmehowwillyouevaluatethevalue
additionoftheschoolpostgraduation?
Valueadditionorthelegacyevencanbecheckedby1.theschool’sranking2.alumbaseand
wheretheycurrentlyare3.theboardexaminationscoresandstandingamongotherCBSE
schools.
Okay,fairenough.Youcanfocusonthestudentjourneyduringschoolhours.Wehavenot
changedourtimings,norarethereanyexternaldisturbancesthathamperthestudent
experience.Youcantellmemoreaboutwhatdoyoumeansbythepeoplethestudent
interactswith.
Intheschool,astudentcaninteractwithpeers,teachersandtheadministrativestaff.Would
youlikemetolookatanyoneinparticular?

17. 17
Private SchoolProfitability | Easy | Bain (Buddy)
ICON, IIM Bangalore
Canyoufurtheranalyzepeerinteractionsandpossiblereasonsastowhyaretheyaffecting
ourenrollments?
Sure.Thepeerinteractionsmighthavemadetheenvironmentnotconduciveforstudying.I
cancurrentlythinkof4reasonsforthesame
1.Thestudentsarenotequallymotivatedtostudy
2.Fewstudentsareunrulyandnoisymakingclassesdifficulttounderstand
3.Fewstudentsareoverlycompetitiveandnothelpful
4.Therehavebeenincidentsofbullyingintheschool
Haveweseenanyofthefollowingreasonshamperingthestudent’sschoolexperience?
Yes,youareright.Wehavebeenexperiencinganincreaseinbullying.RecentlyRTEwas
implementedwhichmandatedthatprivateschoolstakeinstudentsfromtribaland
economicallybackwardscommunities.Oncethatbegan,thesestudentswereslowtopick
uppace.Addingon,duetoculturaldifferences,theyfounditdifficulttofitin.Thecurrent
studentsdidnotgetalongwiththenewstudentsandbulliedthem.Asretaliation,thenew
studentsengagedinviolence.Seeingthis,theparentsarenowreluctanttosendtheir
childrentotheschool.
Duetoviolence,weareseeinganincreaseinthecostofrepairinginfrastructure.
Couldyouthinkofwhatsolutionscanbeimplemented?
Sure.Intheshorttermtheschoolcanfirstaddresstheviolenceandbullyingwithstrict
actionsandsensitivitytraining.Thenewstudentswhoareenrolledcanbegivenextra
classestocatchupwithrestofthestudents.
Inthelongerrun,theschoolshouldpositionitselfasaschoolthatencouragesequalityand
doesnotstanddiscrimination.Theschoolcanlaunchprogramsthatstarttrainingthetribal
kidsbeforetheyjointheschool,sotheyaremorecomfortablewhentheyjointhe
classroom.Theotherstudentsshouldbeencouragedtobefriendthenewstudentsthrough
buddyprograms.
Goodsuggestions.Wecanwrapupthecase.

18. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
18
•Decline in the profitability of a private school
•Analyze the reason for the decline and provide recommendations to improve profits
•The type of school and
students’ profile is important
to ask
•Address different revenue
streams for the school
Private SchoolProfitability | Easy | Bain (Buddy)
•Identifying different revenue streams is essential and a good way to MECE. In case of educational institutions also account for endowments and grants.
•Use solutions that are feasible and divide them in short and long term solutions.
ICON, IIM Bangalore
Profits
Revenue
Fees
# of students/ Class
Decision to join schoolStudent experience in school
TimingPeople
Peer
MotivationUnruly CompetitionBullying
RTE
TeachersAdmin
InfrastructureExternal
Disturbance
Post school value add
ClassesFees/ Student
Boarding feesBus/ Meal
ServicesDonations
Costs

19. 19
Airport ProfitsProfitability | Easy | Bain (Partner)
ICON, IIM Bangalore
YourclientistheownerofDelhiAirport.Theairportisfacingdeclineinprofit,theowner
hiredyoutoidentifythecorereasonandprovidesuitablerecommendation.
Beforedivingdeepintosolvingtheproblem,Iwouldliketoknowbitabouttheclient.CanI
asksomepreliminaryquestionsabouttheclient?
Yeahsure,goahead!
Sincehowlongourclienthasbeennoticingthedeclineinprofit?Isitindustrywideissueor
specifictoourclientandisthereonly1airportinDelhi(noothercompetitors)?Apartfrom
that,areweconcernedaboutdomesticairportorinternationaltoo?
So,theprofithasbeendecliningsincelastquarter.Thedeclineisspecifictoourclientand
thereisonly1airportinDelhi.Wecanlimitourscopetodomesticairportonlyforthiscase.
Okaysir,IthinkIhaveenoughinformationabouttheclient.Icannowbreakdownthe
problem.CanItakefewmomentstostructuremythoughts?
Yeahsure!
Alright!Iamreadywithmyapproach.So,theprofitisthefunctionofrevenueandcost.
Eithertherevenuehasbeengoingdownorthecosthasbeenincreasing.Dowehaveany
ideaaboutanyoftheabove?
Yes,therevenuehasbeendeclining.Canyouthinkofthesourceifrevenueinatypical
airportoperation?
Sure,therevenueatanyairportgeneratesfromtheflightoperations,parkingfees,airport
freights,retailsshops,advertisingspacesellinsideandouttheairportetc.HaveIcovered
everything?
Yesindeed!So,thereisproblemintheonetheshopswhichisoperatinginsidetheairport.
Canyoutelldifferenttypesofshopswhichoperateinairport?
Thereare3typesofshopsinsideanyairport–food&beverages,accessories,serviceslike
massageetc.
Correct.Nowithasbeenobservedthattherevenuecomingfromoftheperfumeshophas
declinedwhichiscausingtheoveralldeclineintheairport'sprofit.Canyoufigureoutthe
reasonbehindthedeclineintherevenueofthisshopandsuggestsomeremedies?
Yeah,suresir.Asweknowtherevenueisthefunctionofpriceperunit*numberofunits
sold*productmix.Didwenotechangeinanyoftheabovefactor?
Thereisdeclineinnumberofunitsold.Othertwofactorsaresame.
Ohokay,sothenumberofunitshavebeendeclining,theproblemcanbesupplysideorthe
demandside.Dowehaveanyinformationaboutifthereisasupplyconstraintorademand
crunch?
Thesupplyhasremainedconstant,problemliesinthedemandsideofit.
Thedemandisagainthefunctionofnumberofcustomers*averageordervalue*order
frequency.Sincetherearelimitcustomerwhodorepeatpurchaseatairport,wecanfocus
onthenumberofnewcustomerdecline.Didwenoticedeclineintheaverageordervalue?
Interestingobservationabouttherepeatcustomer.No,theaverageordervalueisalmost
constant.Youcanmoveaheadwiththereasonswhythenumberofcust.arereducing?
Alrightsir,heretheproblemcouldlieinoneofthethreefactor–presales,duringsalesand
postsalesservice.Doyouwantmetofocusonanyofthem?
Thereisanissueinpresalepart.Canyoufigureoutthat?
Suresir.Theproblemcanwiththeawarenessoftheproductthattheperfumeshopis
sellingortheawarenessaboutthebrands.Apartformtheotherproblemcouldlieinthe
accessibilitytotheshop,customersmightnotbeabletoreachtheshopduetosome
obstaclearoundtheshop.Also,thekindofthecustomerswhicharecomingtotheshop
mightnotbeabletoaffordthepriceswhichtheshopisoffering.Atlastcustomercouldbe
unsatisfiedwiththeserviceswhicharebeingprovideattheshoporthestaffbehavior.
Right,sothereissomeconstructionworkgoingjustoutsidetheperfumeshopwhich
affectedtheaccessibilitytotheshop.Intheinterestoftime,we’llstophere.Thanks!

20. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
20
•Decline in profits of the airport
•Find of the reason and recommend the resolution for the same
•One 1 airport at Delhi, no
othercompetitor
•Focus on domestic airport
•Decline specific to our client
•Happening since last quarter
Airport ProfitsProfitability| Easy| Bain (Partner)
•Break down the problem at each step using MECE
•Pre sales problem can be structurally addressed by using 4As framework
ICON, IIM Bangalore
Airport’s
Profit
Cost
Revenue
Flight
operation
Airport
Freight
Parking fees
Advertising
Shops
Food &
Beverages
AccessoriesRevenue
No. of
units
sold
Supply
Demand
Number of
customers
Pre-sales
AccessibilityReach
Awareness
Affordability
AdaptabilityDuring sale
Post salesAverage
order
value
Order
Frequency
price per
unit
Product
mix
Additional
services

21. 21
Restaurant owner Profitability | Moderate | Bain (Buddy)
ICON, IIM Bangalore
Goodmorning.Howiseverythinggoingonyourside?
Goodmorning,sir.Everythingisgoingwell.
Amazing!Iwantyoutosolveaproblemforourclient.Ourclientisarestaurantownerand
operatestworestaurantsinMumbai(forthesakeofsimplicitylet’snamethemR1andR2.
ThesesarelocatedinBKCwhichisabusiness&residentiallocationinMumbai.Bothofthe
restaurantshavesharedkitchens.R2isfacingadeclineinprofits.Couldyouhelpthemfind
outwhat’swrongandrecommendcertainsolutions?
Interesting.Sobeforeanalyzingtheissue,Iwouldliketoaskafewmoreclarifyingquestions
tounderstandthesituationorthecontextherebetter.
Yes.Pleasegoahead.
Whattypeofrestaurantsarewetalkingabout?Aretheyfineorcasualdining,fastfood
cafes/chains,pubsorclubs?Lastly,myexistinghypothesisisthisbeingaclientspecific
problem,givenweknowthatR1isnotfacinganylosses.Letmepleaseknowotherwise
Great,sotheserestaurantsarepremiumcasualdiningspaceswithaveragerevenueper
headasINR1300-1600.Also,yourassumptionisright;thisisaclientspecificproblem.
Understood.Also,finediningrestaurantscanbemultiplecuisineorsinglecuisine,dowe
havemoreinformationonthis?Thiswillhelpmeimaginethesituationbetter
That’saverygoodquestion–SoR1offersItaliancuisinesandR2offersthaicuisine.
Alright,thanksforthis.IthinkIhaveenoughcontextandagoodinitialpointtostructuremy
thoughtsaroundtheproblem.MayItakesometimeforthesame?
Yeahsure.Pleasetakeyourtime.
Thedeclineinprofitscouldbeduetoincreaseincostsordecreaseinrevenueora
combinationoftheboth.Doweunderstandalreadyforwhichsidetheproblemlies?
Therevenueshavedeclinedsignificantly,whilethecostshaveremainedthesame.
Revenueherecanbe:AveragespendperbillxAverage#ofbills.Iamassuming#oftables
usuallywouldn’thavereduced,sodoweunderstandiftheaveragenumberofbillsbeing
servedattherestaurantinadayand/ortheaverageamountspentperbillhasdecreased?
Theaverageamountspentperbillhasnotchangedbutthenumberofbillsorratherthe
numberofcustomersvisitingtherestauranthasdecreased.
Understood.Basically,#ofcustomersherewouldbe#oftables*numberofbillspertable.I
amassumingnumberoftableshavenotbeenreduced,sofortheotherbuckettoreduce
therecanbeoneorbothofthefollowingtwoissues:Eitherwehavenotbeenabletoeither
attractcustomerstothesamedegreeasearlier(demandgenerationissue)ortheoverall
serviceseessupplysideconstraintfornotbeingabletoservicethedemandfaster(service
issueorupstreamissues).
Fair,wecannotsaythatonaveragethenumberofpeoplewantingtovisittherestaurant
hasdeclined,soyoucanproceedwiththeotherhypothesis
Thisimpliesthatthecustomersvisitingtherestauranthavedecreasedbecauseourservice
perbillpertablehasbeenslower/notuptopreviousstandardandthus,limitingthe#of
billspertable.
Yes,correct.Infact,thefirmhasobservedadeclineinthenumberofbillspertable.
Tounderstandthereasonbehindthesame,Iwouldliketoanalyzethecustomerjourneyby
dividingitintothreeparts.Thefirstpartofthejourneywillstartwiththedecisiontoeating
foodtillreachingtherestaurant.Thesecondpartwillincludetheexperience/serviceinside
therestaurantandthethirdpartwillincludethejourneyduringpaymentandexitingthe
restaurant.
Sure,pleasegoahead.
Tofinalizetheclient’srestauranttoeat,thecustomerneedstobe‘aware’aboutthe
restaurant.ItsavailabilityonZomatoandSwiggyfordineout,discountsandbenefits
offered,modeofconvenienceandconnectivity.

22. 22
Restaurant owner Profitability | Moderate | Bain (Buddy)
ICON, IIM Bangalore
Thecustomerwillthencheckthepriceoftherestauranttoensure‘affordability’.Finally,
oncetherestauranthasbeendecided,thecustomerwillheadtowardstherestaurant.The
restaurantshouldbe‘accessible’.Mismatchinlocationfromgooglemaps,changeinroutes
orrouteblocksduetoconstructionactivities,difficultyinparkingspacesetc.could
negativelyimpactthedecisiontovisittherestaurant.Doweknowisthereanyproblem
here?
Nothereisnoproblemonthisside.Pleasemovetothenextstage.
Once,thecustomersreachtherestaurant,theymayhavetowaitbeforetheirturncomes.
Thentheyentertherestaurantandtakeaseat.Theseatingarrangement,presentationof
cutleryandotheramenitieswillaffecttheoverallperception.Thecustomerplacesanorder
usingamenu,wherethepresentationinthemenuisimportant.Havingplacedtheorder,
thewaitingtime,waiter’shospitalityandfoodqualityandquantitywillbeimportant.
Oncethecustomerhasfinishedeating,Iwouldconsiderthefactorslikeeaseofpayment,
easeoffindingcabservices,customersallowedtowaitattherestaurantetc.Theymayhave
totakeatransportmodetovisitanotherplace.Therestaurantmayengageinloyalty
programsaswell.Doweknowwhereexactlyistheissue?
Thejourneylookscomprehensive.So,inourclient’scasewaitingtimeafterplacingan
orderhasincreased.Couldyouthinkofpossiblereasonsforthesame?
Great.Sincetheservicetimehasincreased.Itcouldbeduetotheprocedurethatis
incorporatedintakinganorder,queuingitandthenpreparingthefood.Forexample,
numberofwaiterscouldhavereducedintakingorder.Inpreparation,delaycanoccurdue
to:
1)Waypreparationwasdoneearliervsnow(e.g.,precookedmixisused)
2)Chefcouldhavebeenreplacedwithaninexperiencedchef.
3)SincethekitchenissharedbetweenR1andR2–availabilityofcounters,utensilsandstaff
canalsobeareasonforincreasedwaitingtime.
Yes,correct.Thereisnoissueintermsofstaff,bututensilshavebeenamajorproblem
givensharingthekitchenisthere.Also,sinceR2caterstoThaicuisineprecookmixisa
limitationandchefshavetoprepareallthedishesfromscratchleadingtoanincreaseinthe
waitingtimeforcustomerandwithlimitationoftheutensil,Thai-cuisinerestaurantfaces
muchmoreofanissue.Nowthatyouhaveidentifiedtheissue,recommendcertain
solutionsfortheclient.
Iwouldliketodividetherecommendationsintoshorttermandlongterm.
Undershortterm,sincethereisalimitationofprecookandalso,wearelocatedinanoffice
space.Ifeelcorporateemployeeswouldbelookingforaquickgrabsduringthebreaks.
Hence,wecanprepareaprecookforthehighrunningdishesduringsomepeakhoursto
avoidanywaitingtimeforourcustomers.Intermsofsharedkitchen–acleardemarcation
ofcountersandutensilscanbemadetoavoidanydelaysandconfusions.
Forlongterm,giventheexpertiseiscurrentlylimitedtothaichefs-wecanfocusontraining
thestaffwhocoulddirectlyhelpthechefsbypreparingtheprecookandthechefscanfocus
onotherimmediateneedsrelatedtopreparationofthaidish.Also,aplatformcouldbe
developedwherecustomerscanpreordertheirdishesonlineandcanpickthemupina
stipulatedperiodoftime.
Those are some great recommendations. Nice interacting with you. All the best !

23. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
23
Your client is a restaurant owner and operates two restaurants in Mumbai (for the sake of simplicity let’s name them R1 and R2. Theses are in
BKC which is a business & residential location in Mumbai. Both the restaurants have shared kitchens. R2 is facing a decline in profits. Could you
help them find out what’s wrong and recommend certain solutions?
•Type of restaurant
•Type of cuisines
•Industry wide/ client specific
•Customer journey mapping
Restaurant OwnerProfitability | Moderate | Bain (Buddy)
•While moving from one phase of the customer journey to another (say from pre phase to the during phase), one should confirm fromthe interviewer if
she has covered all the aspects. This ensures that one doesn’t move back and forth the phases of the customer journey.
•Structure the recommendation to short term and long term and do not give a laundry list of suggestions.
ICON, IIM Bangalore
Profits
CostsRevenue
Average spent
per customer
Average no. of
customers
Number of
tables
Pre-dining
Accessibility
Number of
bills/table
(customers)
During diningPost dining
Affordability
Awareness
Entry and waiting
Seating
arrangement
Service time
Menu
Food quality
Transport
Loyalty program
Staying back

24. 24
Biscuit ManufacturerProfitability | Moderate| Bain (Buddy)
ICON, IIM Bangalore
Yourclientisabiscuitmanufacturerwhohasbeenfacingadeclineinprofitsfor6months
andtheywantyourhelpinthissituation,pleaseproceed.
BeforeIjumpintofindingthepotentialrootcausefortheproblem,I’dfirstliketoknowour
clientbetter.Whenwesaytheyareabiscuitmanufacturer,isitfairtoassumethattheir
productofferingsarejustbiscuitsandifyes,arewelookingataconventionalbiscuitlikea
Parle-GequivalentorshouldIknowofanyotherproductattributes?
Itisafairassumption,ourclientoffersonlyonetypeofbiscuitandcanbeconsideredasa
Parle-Gequivalent.
Okaygreat,I’dalsoliketoknowaboutourclient’sgeographicalpresenceandwheretheylie
onthevaluechain?
TheclientisonlypresentinthesouthernpartofIndiaandholdsahighmarketshare.They
areinvolvedinmanufacturingofthebiscuitandthenthereiszonaldistributionbythird
party.
Sure,Iseethatourclientisamarketleaderinafragmentedbiscuitindustry.Isthisproblem
ofdecliningprofitsbeingfacedbyclientonlyorthisphenomenahasbeenobservedacross
theindustryaswell?
No,otherplayersintheindustryhavenotbeenfacingsuchanissue.
Okay,IbelieveIhaveenoughinformationtoproceednow.I’dliketogoaheadwithabasic
breakupofprofitsintorevenueandcosts.Dowehaveanydataorinformationtoindicatea
decreaseinrevenueoranincreaseincostorbothhappeningsimultaneously?
Therevenuehasremainedfairlyconstantwhilewe’veseenanincreaseincosts.
Inthatcase,Iwouldliketofocusonthecostside.Consideringit’samanufacturingsetup,I’d
liketoconsiderthevaluechainstartingwithR&D,Rawmaterials,Manufacturingand
Processing,StorageandTransportations,Distribution,Marketing&Promotionandpost
salesservicesincludinginboundandoutboundlogistics.DoyouthinkI’vecoveredallthe
majorleversandifyes,dowehaveanyinformationonacostincreaseinanyofthese?
Good,Ithinkyou’vecoveredeverything.Thereisaprobleminstorage.Howwouldyougo
aboutanalyzingit?
Beforegoingontothefactorsaffectingstorage,Iwanttogetabetterideaofthecurrent
storagesystem.Havingworkedinmanufacturing,ourstoragefacilitywasbuiltinrightnext
tothefactory.Oncetheproductisstackedandpackedontopalettes,theyaretransported
totheWIPareafromwheretheywerefurthersenttotheDCwhichwasalsoinclose
proximity.Doweanyinformationonhowandwherethisstorageistakingplaceforour
client?
Perfect,theprocessseemsalmostsimilarexceptforsomeminoralterations.Ourclient’s
factoryisintheoutskirtsofBangalorewhilethewarehouseforstorageiswithincitylimits.
Thebiscuitstravelfromthefactorytothewarehousefromwherethedistributorscollectit.
Okay,nowI’dliketoconsidersomeofthefactorswhichaffectthewarehouse.Iwouldlike
tocategorizeitintointernalandexternalfactors.Ininternalfactorswewouldconsider
capacity,packing,transportwithinwarehouse,employeesandexternalfactorscouldbethe
environment,legalrestrictions,infrastructurearoundfacilityetc.
Whileyou’velistedvalidfactors,I’mafraidourproblemmightnotlieinthese.Couldyou
thinkmoreontheanalysis?
Right,I’dliketobacktrackabitandmodifymystructurehere.Let’sconsiderthejourneyof
abiscuitpacket,Iwoulddefineitasapre-storage,duringstorageandpost-storageprocess.
Inthepre-storagepart,weconsiderthejourneyofthebiscuitfromthefactorytothe
warehouse.Duringstoragewouldencompassthebiscuit’sjourneyfromthereceivingofthe
biscuittillthedistributorcollectsit.Andpost-storagewouldincludetheprocessofthe
biscuitleavingthewarehousefacility.ShouldIproceedwithanalyzingeachpart?
Thatseemslikeabetterapproach,couldyoulookfurtherintotheduringstoragepartonly.
Duringstoragecanbeanalyzedwithpeople,processandtechnology.Wouldyouwantme
todrilldeeperintoeachoftheselevers?
Maybeyoucanexploremoreontheprocessaspect,whatfactorswouldyouconsider?

25. 25
Biscuit ManufacturerProfitability | Moderate| Bain (Buddy)
ICON, IIM Bangalore
Inprocess,IwouldincludeStorageutilization,Packingfractionandmethods,Utilitiesand
Rent,EfficiencyandMachinery.DoyouthinkIhavecoveredeverything,orshouldIdig
deeper?
Thisseemssufficientfornow,whatdoyoumeanbyefficiencyhere?
Inthecontextofaprocessedinstoragefacility,efficiencycouldbeseenasno.ofbiscuits
thataregoodtoproceedtoadistributor,essentiallyconsideringitasameasurefor
wastage.AmIontherighttrackoristheresomethingI’mmissinghere?
You’removingintherightdirection;wehaveseenanincreaseinthewastagenumbersin
thepastfewmonths.Couldyouhelpusunderstandwhyitcouldbehappening?
Yes,wastagecouldbeduetophysicaldamagewhichcouldbevisiblei.edamagedpackaging
orinvisiblei.edamagedbiscuitsorbothwhichmakesthebiscuitsnoteligibleforsale.Since
biscuitsareaperishablegood,expirybeyondtheirshelflifecouldleadtowastageaswell.
Yes!Thatseemstobetheproblem,thenumberofbiscuitsexpiringhaveincreased,whatdo
youthinkcouldbehappeninginthewarehouse?
ThefirstthingwhichcomestomymindistheconceptofFIFOandLIFO.Itcouldhappen
thattheclientwasusingtheFIFOmethodoffirst-in-first-outearlierandthenswitchedto
LIFOlast-in-first-outwhichmeansthattheolderbiscuitswouldexpire,andthenewerones
areoutofthefacilitybeforetheoldones.
Perfect,itsohappenedthatoneofthegatesofthewarehousegotdamagedwhichledto
thedrop-offofbiscuitsfromthefactoryandthecollectionbythedistributor’strucksstarted
happeningfromthesamegate.Thisledtotheolderbiscuitsbeingpushedtothebackof
thewarehouse.Thatshouldbeall,wecanstopthecasehere,thankyou.

26. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
26
•Client is a biscuit manufacturer and has been facing declining profits for 6 months.
•Analyze the situation and identify reasons for the same.
•Client is a market leader in
southern India with one major
product offering.
•Only involved in
manufacturing of biscuits in
the value chain.
•Basic breakup of profits into
revenue and costs and value
chain in a manufacturing.
Revenue has remained same,
there is an increase in costs.
•Issue was in the warehouse
storage and product outbound
method.
Biscuit ManufacturerProfitability | Moderate| Bain (Buddy)
•Draw parallels to experiences if there is existing knowledge of product, for better communication and crisp questions.
•Be thorough with base value chain in manufacturing cases, customer/product journey analysis helps in almost all cases if you’re stuck during case
solving.
•Focus on dissecting and MECE at each level, ask permission to re-modify structure if you realise the current approach might not yield results.
ICON, IIM Bangalore
Profit
Revenue Cost
R&DRaw
material
Manufacturing &
processingStorageTransportationDistribution
Marketing
and
promotion
Sales & post
sales
services
Pre-storageDuring StoragePost-Storage
ProcessPeopleTechnology
Storage
utilizationPackingEfficiency/
Wastage
Utilities
and rentMachinery

27. 27
Travel Agency –IT InfrastructureProfitability | Easy | Kearney (Buddy)
ICON, IIM Bangalore
Yourclientisatravelagency,andtheyarefacingincreasedITcostsforthepast1year.They
havenowhiredyoutodiagnosethisproblemandprovidethemwithsomesolutions
Thank you for the case. Before I proceed with the analysis, may I ask a few preliminary
questions regarding the case?
Yeah,pleasegoahead.
MayIpleaseknowthegeographiclocationsthattheclientoperatesinandifincasethere
aremultiplelocations,aretheincreasedcostsobservedacrossalllocationsorisitspecific
toaparticularlocation.Inaddition,couldyoupleasealsoclarifyifthisisanindustrywide
scenarioorlocalizedtoourclient.
OurclientisoperatingpanIndiaandtheincreaseincostisprevalentacrossalllocationsin
Indiacurrently.Theissueisspecifictoourclient.
MayIalsoknowthetypeofproductsandservicesthattheclientoffers?Forexample,do
theycatertotheairtravelsegment,therailwaysegment,orroadwaysegment,orisita
combinationofallofthem?
Okay,sotheyhelpthecustomersbookticketsforairtravel,hotelsandrailwaytravel.These
aretheonly3segmentsthattheyoperatein.
Thankyoufortheinformation.Iwillnowdelveintothecase.So,whenweconsidertheIT
costsforatravelagency,therecouldbemultiplecomponentsinvolved.Hence,Iwouldlike
tocategorizethemasSoftwarerelatedcostsandHardwarerelatedcosts.Softwarecost
couldbeincurredforutilizingsoftwaresuchasERPs,CRMsandbookingmanagement
systems.Dowehaveinformationonthesoftwarethatthecompanydeploys?
Right,sowedon’thavedataonthesoftwarethatthecompanyuses,butyouareonthe
righttrack,pleaseproceed.
Acompany’sinfrastructurehassoftwareastheprimarycomponentandhardwareasthe
secondarycomponent.Iwouldnowliketofocusonthehardwarecategoryfortheanalysis.
Okay,pleasegoahead.
Consideringhardwarerelatedcosts,andtheconcernedwindowperiodof1year,the
increaseincostscouldbeattributedtothepurchaseofnewhardware,theupgradationof
existinghardwareortherepairofthedefuncthardware.Dowehavedataonwhichofthese
componentsattributetotheincreaseincosts?
Yeah,wedohavedataonthat,butIamnotquitesureofwhatallarebeingincludedunder
thehardwarecategory.Couldyouprobeintoitfurtherandlistdownthevarious
componentsthatcouldbeconsidered?
Yeah,sure.So,hardwarecostsforatraditionaltravelagencycouldcompriseofdesktops
whichwouldincludecomponentssuchasthemonitor,mouse,keyboard,CPU,inverter
(consideringthelocationoftheclient)oritcouldincludelaptops.Inadditiontotheabove,
hardwarecouldalsocoverthecentralservers,theprinters&thefaxmachinesthatthe
companyemploys.Thesecomponentscouldattributetothechangeincosts.
Yeah,youareintherighttrack.Thelaptopcostshavebeenincreasingforthepast1year.
Canyouthinkofsomereasonsforthesame?
Sure,soanincreaseinlaptopcostscouldbeaffectedbyrecentpurchasesofnewlaptops,or
itcouldbebecauseofanincreaseinrepairsofexistinglaptops,oritcouldbeduetothe
upgradationoftheexistinglaptopssuchasupgradingtheRAM,theSSD,battery,etc.
Forsimplicity,letsassumethatthiscostisonlyduetothepurchaseofnewlaptopsandthat
tooforthenewemployeesthattheyarehiring.Wearenotundergoinganysortof
upgradations,butifalaptophasmalfunctioned,wereplacethelaptopfortheexisting
employees.So,itisjustnewpurchasesandreplacementsandnotupgradations.
Gotit,thanks.Basedontheinformationprovided,Iamassumingthatasignificantportion
ofthecostareduetothepurchaseofnewlaptopsandhenceIwouldliketofocusonthe
same.Theincreaseincostscouldbeattributedtoanincreaseinhiringwhichwouldleadto
abudgetovershoot,purchaseofasinglestandardmodelforallemployeesirrespectiveof
theirneedsforexample,providingoverconfiguredlaptopsforbaselevelemployees,or
therecouldbeapolicychangeregardingthelaptopprocurement.
Yes,youhaveidentifiedcorrectlynow,Thereisnostandardizationofmodelsforthepast

28. 28
Travel Agency –IT InfrastructureProfitability | Easy | Kearney (Buddy)
ICON, IIM Bangalore
Year.Duringthebeginningofthelastyear,thecontractwiththevendorforourclientwho
usedtoprovidestandardizedmodeloflaptopsgotterminated.Insteadofre-enteringthe
contract,ourclientimplementedanewprocurementpolicystatingthattheemployees
couldbuytheirownlaptopsandthegetthemreimbursedfromourclient.Doyouseeany
problemwiththispolicy?
Yes, thank you for the information. I see that this policy is particularly detrimental to our
client as there is no upper cap on the amount that one could spend on their laptops. Also
the lack of a standard operating procedure delineating the hardware, software and pricing
cap could cause adequate problems to the cost structure.
Yes, that is true. You have identified the problem. Now could you provide some
recommendations to the client?
Sure,soIwouldsuggestthefollowingtotheclient,
1.Documenttherules&regulationsintoaSOPandimplementiturgingtheemployeesto
adheretotheinstructions.
2.Buythebasemodellaptopwhichcouldsavesignificantamountofmoneyandreinvestit
intoarobustcloudinfrastructuresoemployeescouldworkonvirtualenvironments.
3.Refurbisholdlaptopsorprocurerefurbishedlaptopsfromvendorsandpairthesame
withacloudinfrastructure.
4.Negotiateacontractwithavendortoleverageeconomiesofscaletobringdowncosts.
Bulkorderscouldattractvolumediscounts.
Thosearegoodrecommendations,Thankyou.Wecouldclosethecasenow.Allthebest.
Thankyousomuch.Haveaniceday.

29. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
29
•Client is a travel agency who operates pan India. They have been facing increased IT cost for the past year.
•As consultant find the reason and provide your recommendations
•Increase in costs is directly
provided in the case
•Based on the services they
provide, costs could be
classified as hardware and
software
•Delineating various hardware
and analyzing the root cause
reveals the issue.
•Client has been facing issue
for the past 1 year. Hence a
recent change has caused the
issue
Travel Agency –IT InfrastructureProfitability | Easy | Kearney (Buddy)
•Used the Profitability framework, directly by analysing the cost.
•Asking preliminary questions helped narrow down the scope. This also helps in structuring ones thoughts and delivering key analysis.
•Considering out of the box components such as cloud computing earns brownie points.
ICON, IIM Bangalore
•Monitor
•Keyboard
•Mouse
•CPU
•UPS
No standardization
and
policy changes
Profit
RevenueCost
Hardware
Cost
Desktop
CostLaptop CostServer CostPrinter & Fax
Machines
Software
Cost

30. 30
Hair SalonProfitability | Moderate| Kearney (Buddy)
ICON, IIM Bangalore
YourclientistheownerofthehairsalonatIIMBandisworriedaboutthedropinhisprofits
recently.Hewouldlikeyourhelpinunderstandingtheissueandaresolutionforthesame.
Okay.BeforeIproceedwiththeanalysisofthecase,Iwouldliketoaskafewclarifying
questionstogetabetterideaaboutthecontext.ShallIgoahead?
Yeasure!
Hasourclientnoticedhowlonghasitbeensincetheprofitsstarteddroppingandbyhow
muchhasitbeen?Dowealsoknowifthesituationissameforothersalonsaswell?
Therehasbeena2-3%dropconsistentlyforthelast6monthsthat’sofconcerntoourclient
andnoneoftheothersalonsareknowntohavebeenfacingprofitdrop
Okay.SinceourclientisthesalonowneratIIMB,canIknowiftheycateronlytotheneeds
ofIIMBstudentsandifitisafranchiseeofasalonoperatingelsewhereorastandalone
one?Isittheonlysaloninthecampus?Also,whataretheservicesthattheyofferatthe
salon?
Thereisonlyonesaloninthecampus,anditisnotafranchiseeofanyothersalon.They
offerhaircut,haircolorandheadmassageandthesefacilitiescanbeavailedbythe
studentsoftheinstitute.
Alright.Thedropinprofitscouldbeduetoincreaseincostsoradeclineinrevenueora
relativechangeinboth,thatisaffectingprofitsnegatively.Doweknowifanyofthisisthe
situationwithourclient?
Therehasnotbeenanysignificantchangeincostforthepasttwoyearsandourclienthas
noticedthathisrevenuesaredropping.
Okay,sothatmightbepointingtoachangeinthepricingofhisofferings,oradecreasein
thenumberofcustomerscomingtothesalonoritcouldbethathehasaddedordropped
anyofhisserviceofferings.Hasanyofthisbeenthecasewithourclient?
Notreally.Hisserviceofferingshaveremainedthesamesincethesalon’sopeningandthe
priceswerelastupdatedmorethanayearback.Interestinglyourclienthasalsoobserved
thatthenumberofstudentsvisitingthesalonismoreorlessthesameasitwas6months
back.Canyouthinkofwhatelsecouldbethecause?
Sure.IfIthinkalongthecustomerjourneyandsinceweknowthatthenumberof
customershasremainedthesame,itcouldbethatthestudentsarevisitingthesalonbut
notavailinganyservicesduetoreasonslikehugewaitingtimeorhygieneconcerns.There
mightbeadropinthefrequencyofvisitsofthecustomers.Itmightalsobethattheyare
availingtheservicesbutnotasmanyastheyusedto,meaningthosewhoavailedhaircut
andheadmassagepreviouslyarenowdemandingonlyhaircut.Thereisapossibilitythat
someofthemmightnotbepayingfortheservicesatthesalontrickingtheowner.
Wellitseemslikestudentsareavailingtheservicesastheyusedtobeforeandtheowneris
diligenttoensurethateveryonepays.Butinterestingpoint!Giveathoughttotherevenue
realisationitselfandseeifyoucanfindsomething.
Hastherebeenanychangeinhowthepaymentsaremaderecently.Didheintroduceany
newsystemthatmightbeeatingupsomeofhisrevenuelikeaservicecharge?Orhasthere
beenanypolicychangewherehemustshareapartofhisearningswithsomeotherparty?
Perfect!Hehasbeenonboardedintoanewpaymentsystemtrialbytheinstitute,wherehe
ispaidattheendofthemonthfromtheamountdeductedfromstudentaccount.The
platformalsochargesasmallamountasservicechargepereachcustomertransaction.
Couldyouthinksomewayshecanovercomethis?
Hecaneitheroptoutofthepaymentsystemandreverttohowitwasearlierorleverage
theconvenienceoftheplatformtogetmorecustomerstohissalon.Hecanalsonegotiate
withtheinstituteonhowshouldtheservicechargesbeborne.
Thankyou!Wecanclosethecase

31. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
31
•Client is a hair salon owner
•Identify the cause for drop in profitability and provide recommendations
•Small drop in profits for the
past 6 months.
•Salon offers hair cut, hair
color and head massage to
students at college.
•Drop in profits specific to our
client.
•No change in costs.
•No change in offerings or
price of offerings or no of
customers recently.
•New payment method
introduced.
Hair SalonProfitability | Moderate| Kearney (Buddy)
•Interviewer wanted the candidate to think beyond the typical profitability framework.
•Covering all possible reasons and a structured thought process can help narrow down to the actual cause
•Could have clarified if there is any alternate source of income at the salon, like advertising or sale of any cosmetic products to cover all possibilities
ICON, IIM Bangalore
Drop in Profit
Increasing
cost
Decreasing
Revenue
Number of
customers
Revenue per
customerNumber of
services offered
Price of each
service
Revenue
Realisation
Payment not
done
Delay in
payment
Transaction
charges

32. 32
Grocery Retail ChainProfitability | Moderate | Kearney (Buddy)
ICON, IIM Bangalore
Yourclientisagroceryretainchainownerandisfacingdecreaseinprofits.Heneedsyouto
findtherootcauseandproviderecommendationsforthesame.
Iwouldjustliketoreiteratemyunderstandingoftheproblemstatement.Ourclientisa
groceryretailchainownerandisfacingdecreasedprofits.Weneedtoanalysethesituation
toreachtherootcauseandrecommendthesolution.
That’scorrect.
Thankyou.Beforeproceeding,Ihaveafewclarificationquestions.ShallIgoahead?
Sure.
Whatarethelocationofthegrocerystores?Whatisthetimelineoftheissuethattheclient
hasbeenfacing?Isitparticulartoonestoreorallthestores?
ThechainislocatedPan-India.Theclientisfacingthisissuefrompast6monthsanditis
particulartoonestore.
Iwouldalsoliketoknowwhetherthisisanindustry-wideissueorspecifictoourclient.
Also,isitbeingfacedinanyspecificproductcategorye.g.perishableornon-perishable.
Itisspecifictoourclientandisbeingfacedinfreshfruitsandvegetablescategory.
Alright.Sincewearefacingdecreasedprofits,itcanbeattributedtodecreasingrevenuesor
increasingcosts.Dowehaveanyinformationonthesame?
Yes,wearefacingdecreasedrevenue.
Iwouldlikestructuretheproblembyformulatingforrevenue.Itcanbewrittenasnumber
ofcustomersvisitingthestore*%ofcustomersbuyingfruits&vegetables*avgvalue/
customer.Doweknowifanyofthesefactorshasgonedown?
Theavgvalueoforderhasgonedown.
Justtohaveaclearunderstandingbeforeproceeding,Iwanttoknowifwearesupplying
thesamequantityasweusedto?
Yes.
Great.Sincethereisnoissueatthesupplyside,thedemandfromcustomer’sendhas
decreasedforsuchgoods.Toanalysethisfurther,Iamgoingtogothroughthecomplete
customerjourneyi.e.pre-purchase,duringpurchaseandpostpurchase.Wealsoknowthat
thenumberofcustomersvisitinghasremainedsame,soIwillignoretheprepurchasepart
andfocusontheduringpurchaseofthecustomerjourney.
Goahead.
Iwilldividetheduringpurchaseintothreeparts:journeytillfruits&veggiessection,buying
thegoodsandpaymentprocessintheend.Thefirstpartwillcompriseoftheeaseofaccess
tothatsection,ambience(lights,AC),secondpartinvolvespresenceofsalesperson,
affordabilityofgoods,gettingthegoodsfromshelf(nametags,pricetags),weighingand
packagingandthethirdpartconsistsofqueueforthepaymentandpaymentoptions.Issue
inthirdpartwouldhaveaffectedsaleofotherproductsaswellsoIwillignorethat.Dowe
haveanyinformationwhethertherehasbeenanychangeinthedisplayorambienceofthe
storeoranyoftheotherfactorsthatIhavementioned?
Okay.Thecustomersareperceivingthegoodstobeexpensive.Thereissomeissuewith
pricetags.
Thechangeinperceptioncouldbeduetotwothings:theunitofpricetaghaschangedor
thepricetagsarenotreflectingcorrectprice.
Youareright.Thepricetagsarenotreflectingcorrectprice.Sincetheseareperishable
goods,thepricekeepschangingandthestoremanagementisnotchangingthetags
simultaneously.Thankyou,wewillclosethecasehere.

33. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
33
•ClientisaGroceryRetailChainownerwhichhasPan-Indiapresence.
•Clientisfacingdecreasedprofitsfrompast6monthsandwantstounderstandtherootcauseofthesame.Advicetheclientonthesame.
•Profit decreased in past 6
months in fresh fruits &
veggies
•Only one store problem, not
industry-wide problem
Grocery Retail ChainProfitability | Moderate | Kearney (Buddy)
•Used profitability framework-demand side issue.
•Asking the product category facing the issue was a key question. It helped to drill down to the variability in prices of suchproducts.
•Creating buckets in the customer journey to analyse the demand side issue helped to maintain structure throughout the case.
ICON, IIM Bangalore
Profit
Revenue
No. of customers
visiting
% of customers
making a purchase
Avg. order value
per customer
SupplyDemand
Pre-PurchaseDuring PurchasePost-Purchase
Cost

34. 34
Hedge Fund LLPProfitability | Moderate| Kearney (Sr Manager)
ICON, IIM Bangalore
YourclientisMNPPartners,ahedgefundinUS.Overthelast2years,theyhaveseena
declineinprofitsofthefirm.Theyhavehiredyoutoturnaroundthesituation.
Justtogetahigh-levelsenseofthebusinessandindustrysituation,canIaskafew
preliminaryquestionsbeforewedelvedeeperintotheproblem?
Sure,pleasegoahead.
Couldyoupleasehelpmeunderstandthefollowing-1.WhatistheAUMofthefirm?2.
DoesthefirmprimarilyinvestonlyinU.S.Securities?Ordotheyalsohaveoffshore
investments?3.Whatkindofassetclassesdoesthefirminvestin?
Alright,that’squitecomprehensivesetofquestions.ThefirmhasanAUMof$2.1bn.There
havebeennonewfundraisingsorredemptionsinanyofthesub-fundsinthepast2years.
Itinvestsinallassetclassesincludingsyntheticproductsandtheyhavededicatedstrategies
forthesame.
Alright,Additionally,Isdecliningprofitabilityacasewithclient’scompetitorsintheindustry
aswell?AndIsthisaproblemwithaparticularstrategyorassetclass?
Thereturnshavedampenedforourclientacrossstrategiessincethepast2yearsbutthat’s
notbeenthecasewithourcompetitors.
Alright,IbelieveIhaveafairunderstandingofourclient’ssituation.I’dnowliketo
breakdowntheproblemfurther.
Sure,Goon.
ProfitsisafunctionofRevenuesandCosts.Doweknowifrevenueshavedeclined,orcosts
haverisenorboth?
Bothrevenuesandcostshavechangednegativelyforus.Let'sstartwiththerevenuesand
thenlookatthecosts.
So,revenuesofahedgefundcantypicallybedividedintomanagementfees(%agecutof
initialinvestment)andperformancefees(feesforgeneratingpositivereturnsbeyond
certaincutoff/benchmark).Hasthecompanyseenadeclineinanyoftherevenuestreams?
That’safairsplitofrevenues.Theperformancefeeshasn’tseenmuchchange.However,
themanagementfeeshasdeclined.Ihaveafewnumbersthatcanhelpyoudrivethis
further.2019-AUM:$1.6bn@2%;2020-AUM:[email protected]%;2021-AUM:[email protected]%.
Interesting.So,IcanseethattheManagementfeesasapercentageofnewfunddeposits
hasdeclined.Further,thegrowthofnewfundstothetotalAUMhavenotgrownenoughto
coverthesame.Andweknowthatcompetitorshaven’tbeenexperiencingthesame.
Yes,Spoton.TheclienthadcutdownonthemanagementfeeinresponsetotheCOVID-19
Pandemictoattractmoreinvestments,butthevolumegrowthhasnotbeenasper
expectation.Whydoyouthinkthiscouldbehappening?
Typicalinvestorsofahedgefundarehighnetworthindividuals.Theirprimaryconcernisto
earnareturnontheirinvestmentandhencetheyarenotverysensitivetochangesin
managementfeecutaslongasthefundsperformanceisuptothemark.
Great,Let’smoveontothecostsnow.
Thecostsofahedgefundcanbedividedinto3categories:Softwarecosts,Employeecosts
andOperationalcosts.Dowehaveanyinformationonanyofthesecostshavingchanged
forthecompanyinthepast2years?
Client’ssoftwareandtechnologycostshaveincreasedsharplyinthepast2years.Canyou
thinkofwhythatcouldbehappening?
DuringCOVID,thecompanymighthavehadtomakeasuddenshifttoworkfromhome
setupwhichwouldhaveleadtoincreasedcostsforbothhardwarelikelaptopsandother
peripheralsforemployeesandsoftwareswhichcouldnolongerbesharedbyemployeesin
anofflinesetup.

35. 35
Hedge Fund LLPProfitability | Moderate| Kearney (Sr Manager)
ICON, IIM Bangalore
Bangon,thecompanyhasseensharpriseinthecostofBloombergandEikonsoftwares
sinceithadtoinvestheavilytoprovide1:1accesstoitsemployees.Whilethecompetitors
negotiatedwiththedatavendorstoprovidesharedaccessinaworkfromhomesetupas
well.Whatwouldbeyourrecommendationstoourclient?
I would like to make following recommendations
•Negotiate with vendors to provide shared access to softwares for the employees.
•Execute time management plans and resource planning to ensure seamless movement to
the proposed plan.
•Explored the possibility of gradually increasing the management fee back to the industry
standard in consultation with investor relations team.
Thanks.Wecanclosethecasenow.

36. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
36
•Client is a Hedge fund based out of U.S.
•They are witnessing a decline in profits since the past 2 years. Advice on the same.
•Declining revenues and rising
costs
•Management Fee data
2019-AUM: $1.6bn @2%
2020-AUM: $1.8bn
@1.5% 2021-AUM:
$1.9bn @1.5%
•High Software and technology
costs
Hedge Fund LLPProfitability | Moderate| Kearney (Sr Manager)
•Hedge fund industry is different from usual industries. It is fine to clarify with interviewer about the revenue streams if required.
•If interviewer mentions the timeline of the case, it is important to keep the exogenous macro events in mind while solving. (COVID 19 in this case)
•Always keep competition in mind
ICON, IIM Bangalore
Profits
Revenue
Performance
Fees
Management
Fees
% CutNew
Investments
Costs
Employee Costs
Software &
Technology
Costs
Operational
Costs

37. 37
Pump ManufacturerProfitability | Challenging | Kearney (Buddy)
ICON, IIM Bangalore
Yourclientisapumpmanufacturerwhohasbeenfacingadeclineinprofitability.Kindly
analyzeandsuggestsolutions.
Gotit,thankyouforthequestion.BeforeIstartoffwithmyanalysis,Iwouldliketoaska
fewclarifyingquestions.
Sure!Goahead.
Tobetterunderstandthecompany,Iwouldliketoknowabouttheclient'sproductmix,the
targetsegmentitcatersto,andthepartofthevaluechaintheyarepresentit.
So,ourclientcurrentlyhas2typesofpumpsinthemarket-Retailpumpsforhouseholds
andIndustrialPumpsforthecommercialsector.Manufacturinganddistributionaredoneby
theclient.
Canyouletmeknowaboutthegeographicalareastheclientispresentin,andwhetherit
hasbeenfacingadeclineacrossallregions?
TheyoperategloballyinareassuchastheUSA,Europe,MiddleEast.Buttheproblemis
specifictotheIndianregion.
Tobetterunderstandthemarket,canyoutellmeaboutthecompetitivescenarioinIndia?
Themarketiscurrentlyveryfragmented,wehaveacoupleofbigplayers,andtherestare
smalldomesticplayers.
Canyoutellmeaboutthequantumofdeclineandforhowlongtheclienthasbeenfacing
thisissue?
Comparedtothecompetitorswehaveseena10-20%YoYlossofprofits.Wehavebeen
facingthisdeclineforthelast2to3years.
Noted.IthinkIhavetheimportantpointstostartmyanalysis,Iwillbrieflysummarizethe
keypointstomakesureIhavethecorrectdetails(*summarizesthemainpoints).Isthere
anythingelseIshouldknowbeforeIstart?
Yeah,youcanstartwithyouranalysis.
Okay.Profitmaybesplitdownasfollows:(revenue–cost).I'dliketoknowifthedeclining
profitsaretheresultofdroppingrevenues/increasingcostsorofboth.
Youcanfocusoncosts.
So,IwouldliketoinvestigatethevaluechainwhichIwouldmainlydivideinto–Pre-
Production,production&postproduction.Couldyoupleasetellmeifanyofthesehave
beenabottleneck?
Canyoufurtherelaborateonthepost-productionphase?
Sure,thepost-productionphaseprimarilyincludes–storage&transportation,distribution,
marketing,andpost-salessupport.
Ourclientprovidescheck-upandmaintenanceservicesforourindustrialclients.So,the
problemisobservedinthepost-salesservicei.e.,thewarrantyperiod.
Right,thekeycomponentsinthiscontextassociatedwithpostsalesservicingjourney
wouldmainlybe–man,material&method.Manwouldincludethesalariesandany
variablehumancapitalcost,thematerialincludesthecostofthesparepartsused,&
methodincludesanydesignchangesinthepumporincorporationofanynewrepair
technique,etc.
Thecostofsparepartshasincreased.
ThetotalcostofsparepartscanbewrittenascostperpartXVolumeofspareparts.Can
youletmeknowwhichmightbeanissue?
So,thevolumeofsparepartshasrisensignificantly.Canyouidentifythereasons?
Thenumberofsparepartscanincreasebecauseof2reasons–thenumberofspareparts
perbreakdownhasincreasedorthenumberofbreakdownshasincreased.
Right,Thenumberofsparepartsusedhasincreasedbecauseoffrequentbreakdownsof
thepumps.Canyouthinkofanyreason?
Thenumberofbreakdownscanbeattributedtointernal&externalfactors.Ininternalthe

38. 38
Pump ManufacturerProfitability | Challenging | Kearney (Buddy)
ICON, IIM Bangalore
qualityofthepump&materialused,accuratepumpspecifications,etc.Externalfactors
wouldincludeimproperemployeehandling,pumpspecificationtofluidmismatch,etc.
Well,thequalityofourpumpshasdecreasedbecauseofthepoorqualityofmaterials
suppliedbyoursuppliersleadingtohigherfailurerates.Canyourecommendanythingto
tackletheissue?
Sure,wecandividetherecommendationintotheshortandlongterm.
Shortterm:
1.Setanon-negotiableminimumqualitystandardforthesuppliers
2.In-housequalitycheckstoassurethegradeofrawmaterials
Longterm:
1.Changesuppliersifthecurrentsourcescan’tmeetthequalitythreshold
2.Incorporatemultiplesupplierstoavoidhighdependenceononesupplier
3.Acost-benefitanalysistobedoneforrecallingfaultypumps&replacingthemor
providingaddedservicesinordertomaintainlong-termcustomerrelationships.
Goodjob,wecanclosethecasehere!Allthebest.

39. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
39
•Decline in the profitability of a pump manufacturer
•Identify the problem and suggest recommendations for the same
•The client is a global pump
manufacturer but facing
decline only in the Indian
region.
•Start with the profitability
framework, focus on costs
•Use of exhaustive steps
involved in the (porter’s) value chain
Pump ManufacturerProfitability | Challenging | Kearney (Buddy)
•A good structure in precise preliminary questions and applying MECE wherever required is important to keep the interviewer engaged, as well as not
presenting them with a laundry list
•Take interviewer buy-in at every step. Summarize the problem statement after all preliminary questions and summarize the case approach before
presenting recommendations
ICON, IIM Bangalore
Profit
RevenueCost
ValueChain
Spare parts
Volume
No. of spare parts/
breakdownNo. of breakdowns
Price
Raw
Material
Inbound Logistics &
StorageProductionStorage & Outbound
LogisticsPost Sales Service
Pre-Production
Post-Production

40. 40
Bike Manufacturer in NigeriaProfitability | Moderate | Strategy& ME (Buddy)
ICON, IIM Bangalore
YourclientisaBikeManufacturerbasedoutofNigeriaandhasbeenfacingdeclining
revenuesforsometime.Youhavebeenhiredtoidentifythereason.
Beforedivingfurther,Iwouldliketoaskafewpreliminaryquestionstogetabetter
understandingofourclient.Doesourclientonlymanufacturebikes,ordowecontrolend-
to-enddistribution?IsNigeriatheonlylocationweareoperatingin?Whichdifferent
modelsofbikesdowesell?Whatdoesthecompetitivelandscapelooklike?Howlonghave
webeenfacingthedecliningprofitability?,andwhatisthequantumofthedrop?
Letssaywecontroltheend-to-enddistribution,Nigeriaistheonlygeographyweare
operatingin.Apartfromourclient,SuzukiandBajajarethemajorplayersinthemarket.Let
usjustassumethatthereisonlyonestandardmodelthatweareselling.Andwe’vebeen
facingthedecliningrevenuesforaboutayearnowandbyabout10%.
Gotit.Haveourcompetitorsfacedanydeclineinprofitabilityorisitjustus?Also,hasthe
totalmarketsizechangedoverthisduration?Finally,dowehaveanyinformationonour
customersegmentsandtheircontributiontototalsales?
Ourcompetitorsaredoingfine.Themarketsizehasincreasedbyaround20%overthepast
year.Also,whydon’tyoutellmewhatthepotentialcustomersegmentscouldbe.
So,consideringbikesinNigeria,themajorcustomersegmentsshouldbecommutersfrom
themiddle/low-incomesegments,biketaxiserviceprovidersanddeliverypersonnel.AmI
missinganything?Also,dowehaveaninformationifthedeclineinrevenuesisduetoany
ofthesesegments?
That’scorrect,thesearetheprimarysegments.Andtherevenueshavebeendecliningin
thebiketaxisegment.
Isthereanypointofdifferentiationbetweentheproductsofferedbyusandourmajor
competitors.Also,hasanycompetitorlaunchedanewproductinthetimeframe?
TherehavenotbeenalotoftechnicaladvancementsinthebikeindustryintheNigeriafor
thepast5years,sotheproductshavestayedstable.Beforecomingtonewproducts,tell
mehowwouldyouanalyzethereason.
So,theissuecanbefromdemandsideorthesupplyside.Demandsideissuewouldmean
thattheproductdemandfromthecustomershasfallen.Asupplysideissuewouldmean
thatwearenotabletocatertothedemandinthemarket.Giventhefactthatonlybiketaxi
segmenthastakenahit,itismorelikelytobeademandsideissue.
Yes,that’scorrect.
Toidentifytherootcause,wecanlookatthecustomerjourneyandtrytoidentifypotential
problemsateachstage.Forthiscase,wecanlookatwhythecustomerisbuyingthebike,
thedecision-makingmetricbetweendifferentcompetitors,thedistributionnetworkand
accessibility,financingoptionsavailableatthetimeofpurchase,andaftersales.
That’safairbreakdown,letslookattheprobablereasonsundertheseheads.
Thecustomersarebuyingthebikestobeusedasbiketaxis.Therecouldbeafallinthebike
taxiindustryingeneral.Comingtodecisionmakingmetrics,customerswouldlookatthings
suchasmileage,longevityandruggednessofthevehicle,dimensionsofthebike,comfort
forthedriverandthepillion.Thenumberofretailoutletswouldimpacttheeaseofbuying
abike.Lookingatfinancing,theinterestrates,durationandeaseofavailingtheoptions
wouldbeconsidered.Finally,foraftersales,theavailabilityofparts,pricesandlaborcosts
wouldbelookedat.
Canyoudivedeeperintothedimensionsofthebike,whatdoyoumeanbythat?
Dimensionsofthebikecaninfluencemultiplethings.Itcouldimpactthemaneuverabilityof
thebikeintrafficconditions.Thelengthoftheseatcanimpactthecomfortofthebiketaxi
customersandthenumberofpeoplethedriverscancarryinasingleride.
Correct,Bajajhascomeoutwithanewmodellastyearwithalongerseat.Thetaxidrivers
canfit2customersinasingleride,asaresulttheyarepreferringtheirmodeloverours.We
canclosethecasehere.Thanks.

41. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
41
•Client is a bike manufacturer in Nigeria and controls end-to-end sales and distribution.
•Revenues are falling for the bike taxi customer segment for the past 1 year. Need to identify the reasons.
•Nigeria as an economy is
similar to India. Customer
segments would be similar as
well.
•The market size for bikes has
increased. The competitors
are doing well. The issue is
with our product or company.
•MECE the factors along
customer journey to identify
potential reason.
Bike Manufacturer in NigeriaProfitability | Moderate | Strategy& ME (Buddy)
•Get a complete understanding of the client and market before progressing.
•Understand the customer segments to identify the root cause.
•Follow the customer journey, breaking down and listing potential reasons along each step.
ICON, IIM Bangalore
CustomerJourney
Buying
Decision
Decision Making
Metrics
Distribution
NetworkFinancingAfter Sales
Mileage
Longevity
Comfort
Dimensions
Revenue
Number of
Customers
Revenue per
Customer

42. 42
Beauty Product ManufacturerProfitability | Moderate | Accenture (Buddy)
ICON, IIM Bangalore
Yourclientisoneoftheleadingmanufacturersinpersonalbeautycare.Frompast2years
therehasbeendecreaseinsalesandtheyhavemovedfrom1stto2ndpositionintermsof
marketshare.Youhavebeenhiredtoidentifytheproblemandprovidesolutionstoit.
Beforeproceedingtocase,I’dliketoaskyouafewclarifyingquestionsaboutourclient.
Whatproductsdoesourclientproduceinpersonalbeautycare?Wheredotheyoperate?
Whatiscompetitivelandscape?
Theclientmainlyproducescolorcosmeticswhichincludesfoundation,eyeshadow,lipstick,
blush,andmore.Withrespecttogeography,theyoperatepanIndia.Thereisonemajor
competitorwhichisleadingthemarketsharecurrently.
Oh,that’sinteresting!AndmayIknowwhatpartofvaluechaintheyoperateinandhowis
thedistributiondone?
Theclientmainlyoperatesfromproductiontilldistribution.Further,theyhaveomnichannel
distributionwhereintheyhave3channels.Oneistraditionalchannelthroughdistributors
andstores,secondisthroughmoderntrade,inwhichsupermarketslikeDMartcomesand
lastisonlinechannelthroughtheirownwebsite.
Arewehavingthedropamongallchannelsorisitparticulartoanyofthem?
Thedeclineismoreevidentinmoderntradesande-commerce.Wemayignorethechannel
withdistributorsandretailstores.
Sure,thankyou.NowI’dliketobreakthesalesintoavg.priceperproduct,no.ofcustomers
andavgno.ofproductspercustomer.Shouldwefocusonallofthemoristherespecific
changeinanyoneofthem?
Thepriceshavebeenconstantandthereisnomajorchangeinavgno.ofproductsper
customer.Youcanfocusonno.ofcustomers,thereisasignificantdeclineinit.
Withinno.ofcustomer,I’dfurtherdivideitindemandandsupplybutsincetheproblemis
limitedtofewchannels,itisunlikelythatthiswouldbeissueofsupply.Isitfairtoassume
thatproblemlieswiththedemand?
That’sagoodpointandfairassumption.Youmaycontinuewiththedemand
Withindemand,I’dliketodivideitintoproduct,placeandpromotions.Sinceproblemisnot
acrossthechannels,thereshouldn’tbeanyissuewiththeproducts.Nowwithplacesand
promotions,wewillhavetofocusonmoderntradeande-commerceseparately.
Correct.Let’sfocusonmoderntradefirstandthenwe’llmoveontoe-commerce
FewaspectsIcanthinkofregardingplaceandpromotioninmoderntradesare:Promotion
banners/kiosk,Discountcoupon/membershipoffers,Companysalesadvisor,producttrials
andlastlyplacementoftheproductinshelves.Doweseeanyofthesechangewithtime?
That’sacomprehensivelist,butwedonotseeanychangesforusintheseitemswithtime
Sincethereisnochangewithrespecttotime,I’dliketobenchmarkitwithourcompetitors.
Aretheydoinganyofthesethingsdifferently?
Exactly!Ourcompetitorshaveappointedbeautyadvisorswhoselltheproductnearwithin
thestoresonaislewithbeautyproducts.Nowthatwehavesolvedformoderntrade,let’s
focusone-commerce
Sure,ine-commerce,I’dliketohavesimilarlistbutindigitalcontext.Therecanbechanges
indigitalmarketing,paymentdiscounts,UX/UIofwebsite,AIenabledtrialsorchatbox
advisor.Isthereanychangesinthemwithtimeorwithcompetitor?
That’sgood,andyes,ourcompetitorhasenablesAIforproducttrialstomatchcoloursetc.
Whydon’tyouquicklygivesomesuggestions,andwecanclosethecaseafterthat?
Sure,I’dliketodividesuggestionintwopartslong-termandshort-term.Inshort-term,
companycanenabletrialsinstoresandfewdiscounts/productbundlingwhereasine-
commerce,companycanconsiderreturnpolicyforunusedproductsifthedisplayedcolour
doesn’tmatchwithdeliveredproduct.Whereasinthelongterm,companycanhave
promotionalcampaignswherethey’dbeeducatedaboutourproduct,inasimilarwayour
competitorhasbeendoingandfore-commerce,theycangetthechatbottosuggest
productsaccordingtocustomerneeds.

43. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
43
•Aleading manufacturers in personal beauty care.
•From past 2 years there has been decrease in sales and they have moved from 1st to 2nd position in terms of market share
•Color cosmetics
•Pan-India
•Problem only with Modern
trade and e-commerce
•No change in price, place and
promotions
Profitability | Moderate | Accenture (Buddy)
•After bucketing, benchmarking can be done on both time and internal/external basis
ICON, IIM Bangalore
Revenue
Product price# of
Customers
Demand
ProductPlace
ConventionalModern
TradeE-commerce
Promotion
Supply
# of product
per customer
Beauty Product Manufacturer

44. 44
Retail Jewellery ChainProfitability | Moderate| Accenture (Buddy)
ICON, IIM Bangalore
Yourclientisaretailjewelleryandfacingdeclineinprofits.Youhavebeenhiredasa
consultanttoidentifytheissueandprovidesolutions.
Beforedrillingdownintotheproblem,Iwouldliketoaskafewclarifyingquestionsabout
ourclient.Whatgeographicallocationdoestheclientoperatein?Doesithavephysical
storesand/oronlineretailchannelaswell?
Clientoperatespan-Indiaandhasbothofflineandonlinechannelsforretailing.
Thanks.Forhowlonghavetheprofitsbeendecreasing?Isthisdecreaseinprofitspecificto
ourclientorcompetitorsalsofacingthedeclineinprofits?Isitrestrictedtoaparticular
retailingchannel?
Profitsareondeclinesincelast6months.Thisisaclientspecificproblem.Youcanfocuson
onlinechannels(clienthaswebsite)ofretailingasithasbeenfacingdeclineinprofits.
Andthisdecreaseinprofitinonlineretailinghasbeenobservedbyourcompetitorsaswell?
Thedecreaseisspecifictoourclient.
Sure.LetmejustreiteratethecaseoncetomakesureIhaveunderstooditclearly.Our
clientisajewelleryretailerinIndiawhichhasbeenseeingdecreasingprofitsforthepast6
monthsintheonlineretailbusiness.Thisdecreaseisspecifictoourclient,andwewantto
analyzethereasonbehindthedecreaseinprofitsandcomewithrecommendationsforthe
client.Dowehaveanyotherobjective?
No,that’sall.Youcancontinue.
Thankyou!Profitcanbebrokendownintorevenueandcost.Iwouldliketounderstandif
thedecliningprofitsisduetodecliningrevenuesorincreasingcosts?
Revenuesareondeclinewhilethecostsremainrelativelysame.
Revenueisnothingbutnumberofcustomers*revenuepercustomers*purchase
frequency.Therefore,eitherthenumberofcustomersarenotenoughorthebasketsizeper
customerisverylessorrepeatcustomerareveryless.Dowehaveanyinformationon
whichpartisreducing.
Focusonnumberofcustomers,wehaveseenasteadydeclineinnumberofcustomers.
Declineinnumberofcustomersisafunctionofsupply-demand,pricing,productqualityand
customerexperience/service.Doyouwantmefocusmeonanyoftheseorinvestigateany
otherfactors?
Pleasefocusoncustomerexperience,allotherfactorsarefine.
Alright!Iwoulddocustomerjourneyanalysishere.Iwoulddividecustomerjourneyinto
threephasemainlypre-purchase,duringpurchaseandpostpurchase.Inthepre-purchase
phase,Iwouldinvestigatefactorssuchaswebsiteaccessibility,SEOworkingsetc.Inthe
duringpurchasephase,Iwouldlookintofactorslikebuyingexperience,product
accessibility,selectingproducts,reviews,paymentsystemetc.Whileinpostpurchase
phase,Iwouldlookintoproductqualityandaftersalesservice.
Thiscoversalmostfactors.However,Iwouldlikeyoutofocusonduringpurchasephase.
Isee.Isthereanyissuewiththeproductaccessibilityorselection?
Therehasn’tbeenanyissuewithourwebsiteorbuyingexperiencehoweverinrecently
donesurvey,customerswerepreferringtrialoptionsbeforebuyingdecision.
Doesourwebsitehaveanytrialfeatureforthejewelry?Hasourcompetitorbeenoffering
anyspecialtrialoptions?
No,ourwebsitedoesn’thaveanyproducttrialfeatureyet,butourcompetitorhascomeup
withafeaturewhichusesAR/VRtechnologyandallowsusertoseehowaparticular
jewellerywouldlookontheirbody(fore.g.anecklaceonface)
Alright!Giventhatcustomersareconsciousonhowparticularjewellerywouldlookbefore
makingabuydecision,thetrialfeaturebuiltbyourcompetitorisdrivingthecustomers
towardsitandwearefacingthedeclineinnumberofcustomersandsubsequentlyin
profits.
Great. Thank you for the comprehensive analysis. We can close the case here.

45. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
45
•Decline in profitability of online retailing channel of jewellery chain
•Analyze reasons for decline and provide solutions to overcome
•Improve profitability with a
focus on revenues
•Client specific problem
•Customer survey depicts
preference to trial options
Retail Jewellery ChainProfitability | Moderate| Accenture (Buddy)
•Understanding the consumer journey is the key to arriving at solution.
•Breaking down the customer experience to get down to delivery time is the important step.
ICON, IIM Bangalore
Profit
CostsRevenue
No. of CustomersRevenue/CustomerPurchase Frequency
Supply-Demand PricingCustomer Experience & ServiceProduct Quality
Pre-Buy During-Buy Post-Buy
Website Functionality Trial Option Product Selection

46. 46
Non Profit Organization -ChurchProfitability | Challenging | Accenture (Buddy)
ICON, IIM Bangalore
Yourclientisachurch.Theyareobservingreducingoperatingsurplusandwantto
understandhowtoovercomethesame.Whatwouldbeyourrecommendationtothem?
Thankyouforthecasestatement.Byoperatingsurplusdowemeanthedifferencebetween
revenueandexpenditure-i.e.,thesurplusordeficit-accruingfromoperations.
Yes,thatiscorrect.
Alright,Iwouldliketoapproachthiswitharevenuesideandacostsideanalysis.Dowe
knowiftheChurchisfacingbothrevenueandcostproblemsoronlyoneofthetwo?
TheChurchhasseenreducingrevenuesoverthelast6months,costshaveremainedsame.
Alright,Ihaveafewquestionsaroundthechurch,andthereonIwilltrytoidentifytheir
sourcesofrevenue.
Okay!
Whereisthechurchlocated?Howoldisthechurch?Hastherebeenanychangesinthe#of
peoplevisitingthechurch?Hastherebeenanychangeintheinternalandexternal
environment?
ThechurchunderconsiderationinlocatedinSpain.Itisa100-year-oldchurchhasseen#of
peoplevisitingitreduceovertheobservationperiod.
Sure,Iwouldliketostatesomesourcesofrevenueforchurches,maintaininggrantsfrom
government(incaseofSpaintheCatholicRoyalfamilywillprovidethegrants),donation
fromchurchgoers,fundraisingevents,communityserviceengagements,revenuefrom
allowingprivateeventsatchurches,etc.ArethereanythatIammissingout?
Thatiscomprehensive,therevenuefrombookingforprivateeventshasgonedownand
anothersourceofrevenueisthemuseumwiththeChurchwhichhasseenadeclining
touristcrowd.
Thankyoufortheadditionalinformation.First,Iwouldtrytounderstandwhythebookings
forprivateeventshavegonedown.
IsitbecausetheChurchisfailingtoprovideaplatformfortheconveyanceoftheevents?
EitherduetopoorhumanresourseavailabilityorpoormaintenanceoftheChurch?
Correct,theChurchisindilapidatedconditionandrequiresreconstruction.
Okay,nowwewilltrytoidentifywhytherevenuefromticketshavegonedownforthe
museum.Doweknowifthefactorsaffectingtouristattendancearecontributedtothe
internalorexternalenvironmenttothechurch?
Thetouristsarebeingdrivendownbyexternalfactorsprimarily.
TounderstandthechangesintheexternalfactorsIwouldliketoidentifyiftherewereany
political,economical,socialdisruptionsorinstabilityinthecountry.
Yes,Spainhasseenalotofriotsintherecentmonthsandtouristdonotfeelsafetotravel
totheregionwherethechurchislocated.Whatrecommendationdoyouhaveforthe
Church.
Therecommendationscanbebrokenintoshorttermandlongterm.Intheshortrunthe
Churchshouldtakeimmediateeffortstorenovatethestructureandreviveincomefrom
rentforprivategatherings.InthelongruntheChurchshouldlobbywiththegovernmentto
ensuretranquilityintheregionandcreatesafechannelsfortouristandpilgrimpassage.
Thechurchcanalsoinspectopportunitieswithupdatingtheticketingsysteminthe
museumtodigitalizetheprocessforbettermanagementandrecordcapture.
Thankyoufortheanalysis.Let’swrapituphere.

47. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
47
•The client is a church
•They want to recommendations to arrest negative operating surplus
•The Church is in the European
country of Spain
•The church has seen a drop in
revenue
•Identify the revenue channels
•Check if there are external
factors beyond the church’s
control as tourists are
involved as well
Non Profit Organization -ChurchProfitability | Challenging | Accenture (Buddy)
•Every entity an be considered as business entity and a revenue model can be structured
•Importance of identifying key stakeholders as it drives better decision making while solving a case (eg.choosing to inspect external factors for tourists)
ICON, IIM Bangalore
Profitability
CostRevenue
# Customers
Tourists
External factor
Political and social
tension
Product MixOrder
Frequency
Rent for Private
Ceremonies
Internal factor
Poor maintenance of old church
infrastructure

48. 48
Infra & Construction CompanyProfitability | Challenging | McKinsey (Buddy)
ICON, IIM Bangalore
YourclientisanInfrastructure&ConstructionCompanybasedoutofNewDelhi.Theyhave
missedmeetingtheiryearlycash-flowtargettwiceinarow.Diagnosetheproblemand
providerecommendations.
Interesting.BeforeIdeepdiveintothesaidissue,I’dliketoaskafewpreliminaryquestions
tounderstandtheproblembetter.Isthatalright?
Yes,sure.Goahead.
Great.So,inwhichallgeographiesdoestheclientoperate?Doesitundertakeprojectsjust
outofNewDelhi?Also,tounderstandtherevenuestreams,doweknowwhattypeof
projectsareundertakenbythecompany?
Theclientisfairlynewtothisbusinessandiscurrentlyoperationalonlyintworegions–
NCR&UP.Ithasdecidedtoeitherundertakehighwayconstructionprojectsorventureinto
buildingcommercialoffices.Althoughtherearemultipleprojectsinthepipeline,asofnow,
thereareonlytwoactiveprojects.Oneisanewlyconstructedhighwayconnecting
GhaziabadwithNCRandanotherisanewlybuiltofficespaceinDelhi.
Isee.Doweknowthepercentageshareoftherevenuefromboththeseprojects?Also,
whenweretheseprojectscompleted?Andareboththeseprojectsofftheirtarget?
Well,morethan90%oftheclient’sannualrevenuecomesfromthehighwayproject.Both
projectswerecompleted2yearsback.Fornow,youcanfocusonthehighwayproject.The
officespaceseemstobedoingfine.
Gotit.So,letmestartbybreakingdowntheproblem.Sinceweareunabletomeetour
designatedcash-flowtargetseitherwe’veestimatedthemincorrectlyorweareseeinga
variationfromwhatwasexpected.Dowehaveanyinfoonthevalidityofourestimates?
Theestimatesseemtobeaccurateandreasonable.
Okay,sincethehighwayconstructionprojecthasbeencompleted2yearsback,isitalright
toassumethatcashoutflowsrightnowwouldbeinsignificant?
Yes,forthepurposeofouranalysisyoucanfocusjustonthecashinflows.
Gotit.Isitalsoreasonabletoassumethatonlysignificantrevenuegenerationwouldbe
throughtollcollection?
Yes.That’sfair.
Alright,sorevenuethroughtollcollectionwouldbetheproductoftheaveragenumberof
vehiclespassingthroughthetollplazaandtheaveragetollcollectedpervehicle.Havewe
seenanydeclineinthesenumbers?
Theaveragetollcollectionpervehicleseemstobeasexpected.Youcanexplorethereasons
forthedecliningaveragenumberofvehiclesthroughthetollplaza.
Alright,sothere’dbebasicallytwotypesofvehicles-passengerandcommercial.AsI
understand,commercialvehiclesusuallyformthebulkoftherevenue,soI’dliketoanalyze
themfirst.Doesthatseemreasonable?
Well,thedipinnumbersat25%ismoreprominentforpassengervehiclesthanitisfor
commercialvehicles.Youcanconsiderpassengervehiclestobeouronlypointoffocusfor
now.
Interesting.So,therecouldbemultiplereasonsforthisdecline.Firstly,wecanlookatthe
needforthisnewlybuilthighway.Therecouldbealternativeshorterroutesthatarebeing
preferredcurrently.Itcouldalsobethatpeoplearenotawareofthisnewstretchormaybe
theconnectivitywiththecityroadsisnotgreatandthatismakingitinconvenienttoaccess.
Therecouldbefurtherissueswithtollratesorthecollectionprocesswhichmightleadto
queuingandmakingthehighwaylesspreferable.Lastly,wealsolookifthedriversare
havingasub-pardrivingexperienceonthishighway.Thiscouldbebecauseofmultiple
reasonsrelatedtothesafetyandqualityofroads,lighting,andavailabilityofsecondary
serviceslikehotels,restaurants,repairshopsonthehighway,etc.
Good,thisseemsexhaustive.Well,therehavebeensafetyconcernsaboutthehighwaywith
multiplereportsoftheftandaccidentssinceitsinception.Thishasledtovehiclesnot
preferringthisroutelateinthenight.Thankyouforthecomprehensiveanalysis.Let’sclose
thecasehere!

49. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
49
•Infra & Construction Company missing the estimated cash inflows due to reduced revenue from one of their highway projects.
•Figure out the root-cause and provide recommendations
•Context: Geography –only in
NCR and UP, Company –new
player with few projects,
Product/Projects –
Construction of Highways &
Offices
•Decline in revenue because of
a 25% decline in the number
of vehicles passing through
the highway.
•Issues of safety and
accidents.
Infra & Construction CompanyProfitability | Challenging | McKinsey (Buddy)
•While considering cash flows consider possible issues with estimations along with both inflows and outflows at any point
•Used the profitability framework to drill down to the core of the problem i.e. –the declining number of vehicles at night. Further divided into pre-
process, during the process, and post-process. Pre-process: Need, Awareness, Accessibility, Affordability. In Process: Toll collection process and
payments. Post-process: Experience –Hygiene & Additional
ICON, IIM Bangalore
Net Cash
Flows
Cash
Inflows
Average toll collected
per vehicle
Avg. number of
vehicles
CommercialPassenger
Pre Process
NeedAwarenessAccessibilityAffordability
During
Process
Toll Collection &
Payments
Post
Process
Experience
Cash
Outflows
Estimates

50. IIMB Market Entry Cases
2022-23
50ICON, IIM Bangalore

51. ICON, IIM Bangalore 51
Market Entry Framework
1
Using 2 by 2s for final decision like degree of
control vs investments; competition vs own
capabilities or your own set of parameters
Porter’s 5 forces: Good to get the context of
industry as a whole2
5Cs: Company, Competitors, Customers, Context,
Collaborators →very useful in scoping 3
Value Chains for various industries to understand
nuances of market entry and objective metrics4
Basic structure Good to know frameworks
Market Entry
Strategic
Objective
Industrial
Conditions
How to
Enter?
-Why to enter?
-Target Metric
Market
Attractiveness
Competition
Customers
Barriers to
Entry
OrganicInorganic
-Joint venture
-Acquisition
-Addressable
market
-Growth rate
-Profit Margin
-Market structure
-Reaction to entry
-Segments
-Price, Product,
Place, Promotion
-Financial constraints
-Capabilities/Resources
-Suppliers
-Govt. Regulations
-Patents, IP

52. Risks
InternalExternal
Industry level
Market
AttractivenessCustomersCompetitorsBarriers to Entry
Macro
Factors
PESTEL
Regulations
Currency Fluctuations
ICON, IIM Bangalore 52
Market Entry Framework (contd.)
Preliminary Questions
•Clarify objective, growth quantum and
targeted timeline
•Geography –Why are we looking into this
geography? Have they launched this
product in another market?
•Business Model –Where does the firm lie
in the value chain?
•What are the existing products/ services,
capabilities and expertise of the firm?
•Who are the target customers? Market
size and price sensitivity
•Any side-effects of product?
•Pricing –given or required, ask for
targeted margin
1. Risks Involved
2. Market Size
and Share
3. Modes of Entry
Economic Feasibility: Mkt Size x Mkt Share x (Price –Variable cost) –Fixed Cost
Solve the guesstimate to calculate market size, qualitatively find achievable market share
OrganicJoint VentureAcquisition
Advantages
-Retain business control
-Build Experience Curve
-Boosts Brand Image
-Less investment
-Local Expertise
-High Scale and Scope
-Extend market scope
-Utilise local expertise
-Produce synergy
Disadvantages-High Capex
-High Commitment
-Limited Control
-Brand Dilution Risk
-Significant Investment
-Threat to Brand Value
-Addressable
market
-Growth rate
-Profit Margin
-Market
structure
-Reaction to
entry
-Segments
Price,
Product,
Place,
Promotion
-Financial constraints
-Capabilities/Resources
-Suppliers
-Govt. Regulations
-Patents, IP
-Constraints
-Resources

53. 53
EdTechBusiness StrategyMarket Entry | Easy| McKinsey (Partner)
ICON, IIM Bangalore
Yourclientisanengineeringandconstructioncompany.Itdoesallsortofconstructionsuch
asoilandgasrefineries,equipment,rails,roads,powerplants,etc.Theyhavetheirown
TechServicesaswell.TheclientisnowconsideringenteringintotheEdTechbusiness.Itis
notlikeanyconventionalEdTechbusiness(likeByjus,Unacademyetc.)existingalready.The
clientisconsideringcollaboratingwithengineeringcollegesandoffercoursestothe
students.Suggestwaystostrengthentheirpositionandwhatpartnershipsshouldyour
clientbuild?
Thisisareallyinterestingproblem.Thispropositionseemstobequitedifferent.MayIknow
whatistheobjectiveofourclienttoentertheEdTechbusiness?
OurclientseesgreatpotentialintheEdTechbusinessandwantstodiversifyforgrowth.
Whichgeographydoesourclientoperatein?Anddotheywanttotargetcollegesfromthe
samegeography?
TheclientoperatesinIndia,andtheyarelookingtocollaboratewithIndianengineering
colleges.
Alright!Inthatcase,Iwouldliketolookatfourthings;first–whichcollegeourclientshould
target;second–whichcoursestooffer;third–howtobuildtheplatform,integratecourses
andonboardstudents;andfourth–thefutureoutlookfortheclient.Doestheapproach
soundright?WhatshouldIlookatfirst?
Theapproachsoundsgood.Iwouldlikeyoutolookatwhichcollegestocollaborate.
Sure.Inthatcase,IwouldliketodividethetotalengineeringcollegesinIndiaintodifferent
tiers–tier1,2and3.Ibelievetier1collegesarealreadywell-establishedandhenceit
wouldbedifficultforanyEdTechbusinesstotakeoffinsuchcolleges.Tier2collegesare
goodtostartwith,sincetheyarehugeinnumberanditalsoseemslikealucrativeincentive
fornewadmissions.
Thatsoundsgood.Consideranytier2collegeinBangalore(Ramaiahforinstance).The
clientisplanningtoofferarangeof20uniquecourses.Whatarethevaluepropositionsthat
canbeofferedtodifferentstakeholders?
Okay,Iwouldliketolookatthreedifferentstakeholders:
1.Collegeadministration–Thecollegewillbebenefittedwiththeadditionalrevenue
throughtheEdTechplatforms.Collaboratingwithagoodcompanywouldalsoincrease
itsbrandname,admissionsandrankings.
2.Faculty–Ourclientcancollaboratewiththefacultyofthecollegetocuratecontentthat
isrelevanttotheexistingcurriculum.Publishingsuchcontentontheirplatformwould
alsoincreasetherankingsofthefacultymembers.
3.Students–Thecourseswillofferstudentswithconvenienceofstudyingandquality
content.Theclientcanalsoprovidejobopportunitiestostudentswhosubscribetothe
courses.
Thatisaninterestingproposition.Canyousuggestwhatshouldtheselectioncriteriafora
jobshouldbe?Shouldallthestudentswhosubscribetothecoursebeofferedwithajob?
Shouldourclientaloneprovidejobopportunities?
Ourclientshouldconsiderthefollowingthings:
1.Apartfromacademics,ourclientcanofferliveprojectshappeninginthecompanyor
simulationsasapartoftheircurriculumandevaluatestudentscumulativebasedon
academicscores,performanceinsimulationsandliveprojects.Theclientshouldalso
considerextra-curricularactivitiesforselectingstudents.
2.Jobopportunitiesshouldbeprovidedtostudentswithtopperformanceinthecourses,
maybetop5%ileofstudentswhosubscribetothecourses.Iftheclientoffersjobstoall
students,theymightgetcomplacenttocompletethecoursewithdedication.
3.Jobswillbeprovidedprimarilybyourclient.However,theycanalsointegratewith
differentothercompaniestohelpstudentsfindoutjobs,thusstrengtheningtheirbrand
image.
ThankYou.Thiswasagooddiscussion.Wecanclosethecasenow!

54. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
54
•Engineering and Construction company wants to enter EdTech Business.
•Client wants to develop collaborations with different engineering colleges and stakeholders.
•Focusedonbuildingrelations
withexistingengineering
colleges
•TechServiceswitharevenue
of$5-10Bnandgreat
capabilitiesinthedigital
space.
EdTech Business StrategyMarket Entry | Easy| McKinsey (Partner)
•No conventional framework used, conversational case.
•Think more in the perspective of incentives to different stakeholders involved in the process rather than just the client to make the value proposition stronger
•Take time before steps when you feel uncertain. Ask your interviewer if your approach is right and take his/her confirmation at each step.
ICON, IIM Bangalore
EdTech
Business
Which
college?
Which
courses?
How to develop
the platform?
Future
outlook?
Tier 1Tier 2Tier 3
College
Admin
StudentsFaculty
Selection
criteria
Recruitment
number
Who should
offer the job?

55. 55
Senior Citizen Business IdeaMarket Entry | Challenging | McKinsey (Partner)
ICON, IIM Bangalore
Yourclientisarealestatedeveloper.Hewantstoventureintonewbusinessideacateringto
60+agecategorywhichseemslikealucrativetargetsegmenttohim.Therearemultiple
unicornsinUSunderthegivencategory.Whydon’tyouhelpyourclientwithfewbusiness
ideaswhichhecanventureinto.Assumeyouaredevelopingafull-fledgedstartup.
BeforemovingonwiththecaseIwanttoaskfewclarifyingquestions.Whatexactlydoes
ourclientdo?Doesourclientwanttoventureintotherealestatesegmentorontoanew
businessall-together?
Clienthasmultiplerealestatecomplex.Hehasalsomadeafirstinclassrealestatecomplex
for60+citizenswithalltheamenitiestakingcareofneedofoldercitizens.Hedoesn’twant
tohearaboutbusinessidearelatedtorealestateandwantsyoutocomeupwith
somethingnew.
Gotit.Iwouldliketolayoutbroadstructurehighlightingvariousbucketsunderwhich
variousbusinessplancanbedetailedout.
Sure,goahead.
Sosincemostoftheoldpeoplewouldberetiredandmaywanttoexploreortravelaround
duringthesetimesoTravelwouldbeonesegmentwecanlookinto.Oldpeopleoftenface
troublewithregardtocollectionofpensionsomaybewecandosomethingaround
Banking/FinancialService.Oldpeoplehaveadifferentfoodrequirementwhichisinstark
contrasttoyoungeragegroupsowecanthinkofsomethingaroundFoodServicesegment.
Medicalsegmentisonewherewecanlooktoo,itcanbefurthersubdividedintotwo
categories–a.Checkup–Oldpeoplehavetoundergohealthcheckupquiteoftensothisis
onecategorywecanlookat.b.Prescription–Oldfolksneedconstantrequirementof
medicinebasistheirhealthstatus,sothisisonemorecategorywecanlookat.Wecan
furtherlookintoHealthsegmentwhereinitcanbefurthersubdividedintotwocategories–
a.Gym-Asfarasoldfolksareconcerned,thereisnogymthatcaterstothem.No
gym/trainerisequippedwithtrainingoldcitizens,northeequipmentpresentservethe
relevantpurpose.Somaybewecanlookintothiscategorywherewecanlookforsenior
citizenspecificgymfacilitydedicatedtotrainingjustolderfolksb.Sports–Oldercitizens
oftenfindthemselveslackingtofindaplayertoplaywith.Assportsfacilityismostlyused
byyoungerormiddle-agedfolkswhofindoldercitizenslackinginspeedandtherebyavoid
playingwiththem.Somaybewecanlookintothiscategorywherewecanlooktobuildan
ideaaroundcommunityofsorts.Oldfolkshavedifferenttasteinmusicandmoviesso
maybewecanlooksomethinginEntertainmentsegment.Oldercitizenswanttospend
moretimewiththeirfamilyespeciallytheirgrandkidssomaybewecanthinkofsomeidea
toengagebothgenerations.Hence,wecanlookintotheFunsegment.Thesearefewbroad
categorieswhichIcouldthinkof.
Canyoulistdowntopthreecategoriesamongtheseandrankthem?
I’llputHealthsegmentas1st,Medicalas2ndandFoodas3rd.
What’sthereasonforkeepingMedicalandFoodas2ndand3rdrespectively?
Formedical,wearetryingtoenteranichesegmentofanalreadyestablishedbusiness
industryandtheplayerspresentinthespacecaneasilytweaktheirproductofferingwithno
orminimalcapitalinvestmenttocatertosaidcategoryandcapturethemarketshare.
Similarlyinfoodsegmentalthoughthepersonalizedfoodcategoryforoldercitizensisa
novelidea,thealreadyestablishedplayercantweaktheirexistingbusinessmodeltocater
totheneedsofoldwithnoorminimalcapital,whereasthisisnotthecaseinhealth
segment.
Okay.Howdoyouaimtomonetizethegymcategoryunderhealthsegment?
Ifit’sourclient,thenhecandirectlyoffertheserviceintheoldcomplexhehasdeveloped.
Iwantyoutothinkintermsofsomethird-partyserviceproviderprovidingthesaidservice.
Okaygotit.Thenthesaidprovidercandirectlycontactourclienttoprovideserviceinhis
complex.Theserviceprovidercanalsotieupwiththedoctors/clinicswherethesesenior
citizensgotofortheirphysio/healthcheckup.
Okay.Tellmewhichcategorywillhavethehighestspendbytheoldercitizens.
WhenweconsidertheTravelsegment,itwouldnotentailmuchspendasthetravelfor

56. 56
Senior Citizen Business IdeaMarket Entry | Challenging | McKinsey (Partner)
ICON, IIM Bangalore
mostoftheseniorcitizenswouldnotbeafrequentactivityandmostlyabulkspendfor
wouldbemadefortheoccasionaltravel.ForBanking/Financialsegment,thespendisagain
notmuchasthebankingservicesinitselfdon’trequiremuchspend.Forfoodsegment,we
knowthatthefoodrequirementofoldercitizenisdifferentandmostlymajorityprefer
homecookedfood.Hencethissegmentalsodoesn’tentailmuchspend.Oldercitizens
undergoregularhealthcheckupsandhavedifferentmedicinalrequirementssoMedical
segmentwouldbeoneinwhichspendwouldbehigh.UnderHealthSegment,as
mentionedpresentgymsdon’tcatertothepresentneedofseniorcitizenssopresently,I
don’texpectanyspendingymcategory.Similarlyinsportscategory,theonlyspendmight
beofclubmembership.So,inoverallhealthcategorytheoverallspendisminimal.Allthe
majorOTTsubscriptionsareunder1ksothespendinEntertainmentsegmentisalso
minimal.LastlyFunsegmentissomethingthathasnotyetbeenventuredintosothespend
againisminimalornon-existent.Hence,Medicalsegmententailsthehighestspendby
seniorcitizens
Okay.Thankyou.Wecanstophere.

57. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
57
•Client is a real estate developer and wants to venture into new business catering to 60+ age category
•Client has developed a real estate complex catering to needs of senior citizens
•Client doesn’t want new idea
to be in real estate segment
and wants to venture into new
segment altogether.
Senior Citizen Business IdeaMarket Entry | Challenging | McKinsey (Partner)
•Try to be as broad with your ideas as possible
•Try to give reasons for all the assumptions or ideas.
•Aim is to show the interviewer how extensively can you think given the time constraint and unconventional case model
ICON, IIM Bangalore
Idea Map
Business Idea
Existing CompetencyNew Category
Possible Business Ideas
TravelRanking/
FinancialFoodMedical
Check-UpPrescription
Health
GymSports
EntertainmentFun

58. 58
Gig Workers Business ModelMarket Entry | Moderate | BCG (MD)
ICON, IIM Bangalore
Yourclientisastartupthattrainsengineeringgraduatesforentrylevelengineeringjobs.
Theyarecurrentlythinkingaboutventuringintoanewbusinessmodelwheretheytrain
thesegraduatesandsendthemasGigworkerstodifferentorganizationsandchargethem
fortheservices.Discussabouttheviabilityofthenewbusinessmodel.
Thankyouforthecase.TodevelopabetterunderstandingabouttheclientcapabilitiesI
havesomepreliminaryquestionsabouttheircurrentbusinessmodel.Iwouldliketoknow
whereisthestart-upbasedoutof,whatisitsoperationalmodelandwhatarethecurrent
revenuestreamsforthestartup.
Theyareoperatinginatier2city.Theyhavephysicaltrainingcentreswherestudentsenrol
themselvesfor3-6monthsindustrytrainingalongwithinterviewpreparations.Theyeven
havetrainingprogramsforpeoplewhohavesomeworkexperience.Canyouthinkabout
theirprobablerevenuestreams?
Theirprobablerevenuestreamscanbesplitupintotwo,coreandnon-corerevenues.The
enrolment/coursefeethattheychargethestudentsformstheirprimarysourceofrevenue.
Sinceit’satrainingcenter,firmswhoarelookingtohirecompetentcandidateswithout
havinganelaboratehiringprocesscanreachouttoourorganizationforsomequickhiring.
Thiscanbringussomenon-corerevenue.
Thatsoundsfair.Canyoutalkaboutsomecostheadsthattheclientmightbeincurring.
Sinceit’saphysicaltrainingcentertherewillbesignificantinfrarequirementsthatwillform
amajorityofthefixedcostthattheclientincurs,thisincludesleasing/rentingthetraining
centers,setupcosts,computerdevicestosetuplearninglabs,courseinstructorfeealong
withadminandmaintenancecosts.Significantamountofcostalsogoesinmarketing
activities.
Whydoyouthinkthisstartupisinterestedinreconfiguringitsbusinessmodel?
BeforeansweringthatIwouldliketoconfirmifIhavethecorrectunderstandingofthenew
businessmodel.So,theclientwillbesendingtheirtraineestodifferentorganizationsasGig
workerssayforaparticularproject.So,thetraineeswillserveastheiremployeeson
contractualbasis,right?Andtheclientwillchargetheorganizationbyevaluatingtheproject
work,andnumberandcompetencyofthetraineesbeingappointedforthesame.
Yes,that’sthecorrectunderstanding.Doesthissoundinterestingtoyou?
Wecanapproachthereconfigurationideainthefollowingmanner,wecantalkaboutthe
marketopportunity,therisksandbenefitsassociatedfollowedbycheckingthefinancial
feasibilityforthenewmodel.
AssumingthatourclientispreparingtraineesforanentryleveljobinanITcompany.Let’s
talkaboutthestatusquo,theseITfirmshireinlargenumbersandspendhugecostsin
trainingtheemployees.There’salotofattritionamongnewemployeesandlevelof
competencyremainslowforsignificantnumberofhires.Ourstartupessentiallyistaking
awaytheheftyhiringandtrainingcostswhileensuringcompetencyoftheemployees.
Also,ITfirmshavealotofproject-basedworkandneedvaryingresourcesatdifferent
times,thecontractualnatureofthejobwillhelpthemsavecostsastheywouldn’tbe
requiredtopaytheemployeeonayearlybasisbutonprojectbasis.So,fromafirm’sPOV
theideaseemsattractive.Ifourclientventuresintothenewbusinessmodelthemarket
acceptabilitywillbehigh.
Alright,talkaboutsomerisksassociatedwiththisbusinessmodel.
Severalrisksassociatedare–
1.Theindustrieshavevaryingscopeanddynamicnaturehencethereisaneedof
continuoustrainingtoensurethecompetencyandqualityofourtalentpool.Our
trainingcostoverheadswillalwaysbehigh.
2.Ourtraineesmayleaveusafteracquiringtheinitialtrainingandfindjobsontheirown
ratherthanbeingourresourcesforthegigwork.
3.Notallofourtalentpoolwillbealwaysappointedingigworkandtherewillbe
individualswhowillbesittingidle,butwewillhavetopaythemdespitenowork.
4.Firmswouldtrytopoachgoodemployeesandwilleventuallytrytoeliminateusfrom
theequation.Ultimatelybestofourtalentswillbesievedout.

59. 59
Gig Workers Business ModelMarket Entry | Moderate | BCG (MD)
ICON, IIM Bangalore
Okay.Iwanttoknowyourapproachforpricingthis.
Okay,wewillchargethefirmsvariablyaswehaveatalentpoolwithvaryinglevelofwork
experienceasperthefirm’sprojectneed,wewillhavecustomizedpricing.
Iwillstartwithindustrystandardforentrylevelengineeringjobs,isitfairtoassumethatan
ITfirmwillhavetopay5LPAforanemployeeforayearandmaybea10%hikeasthelevel
ofexperienceincreases?Also,forsimplicitycanweassumethatafirmwillneedthe
resourcesforaperiodoflessthanayear?
Fineyoucanassumethat,considerthatwehaveatalentpoolof1000peoplewith600
freshers,300withanexperienceof1-1.5yearsand100withanexperienceof2-3years.
Considerthatyouhavetopayyourresourcesfortheentireyearirrespectiveofwhether
theywereappointedbyafirmornot.
Alrightthatbringsustothefixedcostthattheclientwillhavetoincurintermsofsalaries.
Wehave5LPA,5.5LPAand6LPApackages.Thetotalcostcomesouttobe52.5Croresfora
yearandadditionallywewillhavesomeothercostssuchasinfra,training,adminand
maintenancecost.Dowehaveanyideaabouthowmuchitaddsupto?Alsoasdiscussed
noteveryemployeewillbeappointedtoajobatagivenpoint,dowehaveanyideaabout
theresourceutilizationintermsofpercentage?
Considerothercoststobe7.5Crforayear.Andatanypointwewillonlyhave60%ofthe
poolappointedtoajob.
Alrightafixedcostof60croresandonly600peopleemployedatonce.Forbreakevenwe
wouldhavetocharge10Lperresourceforaprojectwork.Andtomakeourventure
profitablewecankeepafairmarginof10-15%asprofits.Thisleadsto11Lor11.5Lper
resource.
Doyouthinkispricingisreasonable,whatshouldourclientdo?
Thisismorethandoubletheamountthefirmcurrentlypaystotheiremployees.Theycould
havetworesourcesinsteadofoneiftheygothroughtheirusualrouteofhiringandtraining.
Thispricingwouldnotworkasfirmswillbereluctanttopaysuchanamount.
Therecanbeanotherreasonforreluctanceforsuchfirmstheywouldwantsuchemployees
tostaylongerastheyhavededicatedenoughtimeinunderstandingthefirm’sbusinessand
projectrequirements,theywillloseonteamsynergiesiftheygoforcontractualmodelof
work.
Anyconcludingnotesorsuggestionsfortheclient?
Our client should reconsider this business decision as the pricing is the pain point. Price can
be made viable only and only if at least 90% of the talent pool is appointed at any given
point which is a very optimistic scenario. Even enormous trainings can not ensure such
numbers and quality of the employees will go for a toss if the talent pool increases.
The client should work on optimizing their current practice, they can look into expanding
their business by introducing online/ hybrid training programs this can help reduce the infra
and training costs. Also, they can provide hiring and training services to the firms where
they essentially aren’t required to pay salaries to the talent pool.
Good.Itwasnicetalkingtoyou.Thankyou.

60. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
60
•Client trains engineering graduates for entry level engineering jobs
•Venturing into a new business model of sending these trained employees as gig workers in different organisations
•Objective: Identify the viability of the new business model
•Operating in a tier 2 city
•Impart 3-6 months of
physical training & interview
preparation
•Revenue Streams–Enrolment
fees, commission for
conducting hiring processes
for orgs
•Cost Heads –variable training
costs, fixed infrastructure,
rental & staff costs,
marketing costs
Gig Workers Business ModelMarket Entry | Moderate | BCG (MD)
•Delving into the reason why the firm is venturing into the new business model is essential
•Giving a verdict on the financial viability and ways to act upon it was well received by the interviewer.
ICON, IIM Bangalore
Market Entry
Market
Opportunity
Risks &
Benefits
Varying
training scope
Absconding
trainees
Volatile
demand
Poaching from
Firms
Financial
Feasibility
Pricing
Benchmark
based Pricing
Industry CTC
& growth rate
Cost Based
Pricing
Value Based
Pricing

61. 61
Multibillion Dollar Textile ConglomerateMarket Entry | Challenging | BCG (Buddy)
ICON, IIM Bangalore
YourclientisaleadingmultibilliondollarplayerinthetextilebusinessinIndia.Theywishto
launchatechnicaltextilebusinessoutsideofIndia.Theyneedyourhelpinevaluatingwhich
geographytolaunchtheproductin.
Beforewegoforward,Ihaveafewquestionsregardingtheclientandalsotheproduct.
Whatdowemeanbytechnicaltextiles?Doestheclienthaveanyhistoryoflaunchinga
product/businessoutsideofIndia?
TherearetwotypesofTextiles-ConventionalTextilesandTechnicalTextiles.Conventional
Textilesareyourregulartextilesusedlargelyformakingeverydayfabrics(clothes,sheets,
etc.)withaestheticandsomefunctionalvalue.Technicaltextilesarefabricsthatfocuson
functionalvalueandhaveatechnicalapplication.Fore.g.fabricinfirefighting,fabricinPPE
kits,fabricsinautomobilesandaircrafts.
Thetextileplayerhasarichlegacyinconventionaltextilesbutislaunchingabusinessin
technicaltextilesforthefirsttime.Theyhavesomelimitedbusinessgloballybutaremainly
basedinIndia.
Thanks!WhyaretheythinkingoflaunchingabusinessinTechnicalTextiles?
TheyhaverecentlyacquiredaGermancompanythatspecialisesintechnologyfortechnical
textiles.Theywanttoleveragethisinlaunchingaproductoverseas.
Doesourclienthaveaspecificgoalinmind?
Intheshortruntheywishtogainsomemarketshareinthechosengeographyand
eventuallyconsolidateasaprofitablemajorplayerinthemarket
Great!Iwanttostartmyanalysisbyfocusingongaugingthemarketattractivenessthrough
evaluatingthemarketsizetheycancaptureintheneartermandthenfocusonoperational
feasibilitybylookingatourcompetition,valuechaincapabilitiesandfinalizingonamodeof
entry.Doesthisapproachlookokay?
Great!Letusfocusonmarketattractiveness.Pleaseproceed
Technicaltextileshaveseveralapplicationsacrossmanyindustries.Togaugemarket
attractiveness,wewouldhavetothinkofwhichindustryourclientwantstoenter?Does
theclienthaveanypreference?
Goodobservation.Technicaltextilesmainlyhasapplicationsacrossthetraveltech(for
automobilesandaeroplanes)andmedtech(forPPEs,masks,medicalequipment).What
factorswouldyoulookatwhenevaluatingwhichindustrytoenter?
Twomaincriteria:a)IndustryGrowthb)Adoptionoftechnicaltextilesinthatindustry.
Assumingthisispostcovid,wewouldhaveseensignificantadoptioninmedtechwhilethe
adoptionintraveltechwouldbemoreorlessstagnant.TheMedtechindustrywouldhave
grownduringcovidandwouldseesomestagnationinthecomingyears.Consideringthe
boomintravelpostcovid,thetraveltechindustrywouldbegrowing.
Goodpoints.Assumeourclienthaschosenoneoftheindustriesasperyour
recommendation.Whatotherfactorswouldyoulookatwhileevaluatingthemarket
attractiveness?
Okay,oncewehaveestimatedthemarketsizeforourchosenindustry,weneedtolookat
themarketshareitcancaptureinthenearterm.Wewouldlookatthecompetitivenessin
themarketandseeifthemarketisconsolidatedorfragmented.Wewouldalsolookatthe
historyofpreviousentrantsandhowmuchmarketsharetheycapturedinitially.
Great.InmostofthecountriesthetechnicaltextilemarketischaracterizedbyahighHHI
Index.Knowingthis,howwouldyouassessattractiveness?
AhighHHIindexwouldmeanthattheindustryishighlyconcentrated.Thiswouldmeanthe
fewlargeplayersarecreatingbarriersofentry.Inthecontextoftechnicaltextiles,thiscould
beindustrylobby,regulationorpatents.Wouldyoulikemetothinkofmore?
Goodcatch!Afewmultinationaltextilecompanies(industryleaders)havecreatedalobby
whichkeepsupdatingregulationsmakingittoughfornewentrantstosustaininthemarket.
Howwouldyoucounterthisissue?

62. 62
Multibillion Dollar Textile ConglomerateMarket Entry | Challenging | BCG (Buddy)
ICON, IIM Bangalore
Wecanthinkoftwoapproaches:a)Partnerships–Haveajointventurewithanexisting
leadingcompanytolaunchourproductinthatgeography.b)Government/Politicalsupport:
ChooseacountrywhichhasgoodbilateraltradeagreementswithIndia,makingiteasyto
enterthemarket.
Goodpoints!Wecanclosethecasenow!Thankyou.
Thankyou!

63. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
63
•A leading Indian multibillion-dollar textile conglomerate wants to enter a market overseas in the technical textiles business.
•Has a limited presence globally but has recently acquired a German company specializing in technical textile products.
•Important to keep listing
major factors at each stage-
some industry knowledge was
helpful
•Interviewer looking for
creative ideas. Conventional
approach less supporting.
Multibillion Dollar Textile ConglomerateMarket Entry| Challenging | BCG (Buddy)
•Asking relevant questions upfront is key to solving the case. Tendency to go down the rabbit hole as case statement is brief.
•Taking buy-in from interviewer during market attractiveness MECE is important.
•Choosing criteria for evaluating which industry to choose was critical. Interviewer looking for creative insights.
•Some industry insight was helpful. Useful to know what factors govern markets in traditional industries.
ICON, IIM Bangalore
Market
Attractiveness
Industry
Selection
MedTechTravel Tech
Market Size
Industry
GrowthAdoption
CompetitivenessBarriers to
Entry
TechnologyJoint
Venture
Regulatory
Lobby
Bilateral Trade
Partner Country

64. 64
E-commerce (Furniture segment)Market Entry | Moderate| Kearney (Partner)
ICON, IIM Bangalore
Youclientisane-commercecompanywhichiscurrentlyinapparelsegmentcurrentlyand
wantstoenterinonlinefurnituresegment.Canyoupleaseanalyzethecurrentmarketand
suggestifyouclientshouldenterinthemarketornot?
Beforeanalyzingthecurrentmarket,Iwouldliketounderstandmoreabouttheclient.CanI
askafewquestionsregardingthesame?
Yeahsure.
MayIknowthewheredoestheclientoperatemajorly?Inwhatspecificsegmentofapparel
doesourclientoperate?WhichkindofmarketdotheyserveB2BorB2C?Whatisthe
objectivebehindenteringinfurnituresegment?Whoarethemajorplayersinthemarketas
ofnow?
Nice!So,ourclientiscurrentlyoperatingonlyinIndianmarketwithmajorcompetitoras
Myntra,FlipkartandAmazon.Theyareservingeverysegment,majorlywomenapparelsand
concentratedoninB2Cmarket.Theclienthasdonesomepreliminaryresearchandfound
outthattheonlinefurnituresegmentissomethingwhichisuntappedasofnowandseems
tohavelotofpotential.
IthinkIhavealltherequiredinformationtoproceedwithmyanalysis.CanItakefew
momentstostructuremythoughts?
Sure!
Alright,soIwouldliketodividetheanalysisintwoparts,firstIwillanalyzethemarket
attractivenessthenIwillgointochecktheoperationviabilityandfinancialfeasibilityofour
client.Doesthisseemcorrectapproach?
Interesting!Thisseemsfairapproach.Pleasegoahead!
Tostartwithmarketattractiveness,Iwouldfirstliketounderstandthetotaladdressable
marketinIndiathenwecanlookatotherfactors.
Youcanjusttellmetheapproachhowwillyoureachtothatnumber.
Okaysir.IwillfirstdividetheIndianpopulationintotwopartsUrbanandrural.Thenwecan
considertheaveragefamilysizeUrbantobe4andruraltobe5togetthenumberof
householdineachsegment.Thenwecandividethefurnitureconsumptionintotwo
categoriesasdurableandnondurableandgettheaverageannualconsumption.Wecan
considertheaveragelifeofdurablefurnitureastobe15yearsandnon-durabletobehalfof
it.Summingallthisup,wewillwethefinalannualconsumptioninIndia.
Thatseemscorrect!Canyouthinkofwhatwillbetheconsumptionpatternandcustomer
base?
Therewillbetwokindsofcustomerfirstwillbewhoarebuyinganewfurnitureandsecond
willbethegroupofpeoplewhoarelookingforreplacementofoldfurniture.The
consumptionwillbeagainbeoftwotypenewandrepeatcustomers.
Nice!Nowcanyouthinkofotherfactorswhichwillhelpustodecidemarketattractiveness?
Otherfactorsthatwillhelpustodecidecanbemarketgrowthrate,profitmargin,customer,
competitions,barrierstoentry,deliverycost,warehousingcost,returnpoliciesetc.
Thatsoundsgood,nowyoumoveaheadwiththesecondpartoftheanalysis.
Tounderstandtheoperationviability,weshouldlookatthevaluechainofonlinefurniture
segment.Itstartswithprocurementofmaterialthatalsoincludesonboardingvendorsthen
wehaveinventorymanagementwherewemustdecidetheoptimalinventoryasper
demandthenoperationswherewemustlookatthecurrentourapplicationandifneeded,
wecanbuildanewapp.Finally,wehavedistribution,marketingandpostsaleservicesin
whichwemustdecidehowwillwecapturethemarketandretaincustomers
Prettycomprehensive.Canyouinvestigatewaytoenterinthemarketnow?
Wecanenterinthemarketeitherorganicallybysettingupourownoperationfromscratch,
orwecanacquiresmallplayerwhoarecurrentlyoperatinginthissegment,orwecando
jointventurewithabiggerfirm.Iwouldliketoaddonemorepointherethatwecan
leverageourcurrentcustomerbasetomarketourproductaswearedoingwellinapparel
marketandfurnitureinmutuallyexclusivefromthat.
Thatisagreatidea.Ithinkwecanclosethecasehere!Thankyou.

65. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
65
•Apparel ecommerce client who wants to online furniture segment
•Analyze the market and suggest the way to enter
•Only operated in Indian
market
•Major competitors –Myntra,
Flipkart, Amazon
•Operating in B2C segment
•Done preliminary research
and market seems attractive
E-commerce (Furniture segment)Market Entry | Moderate| Kearney (Partner)
•Divide the market entry problem in 2 parts always –market attractiveness and (financial feasibility and operation viability)
•Try to incorporate information provide upfront while providing recommendation
ICON, IIM Bangalore
Entry in New
segment
Market
attractiveness
Guesstimate
market sizing
Other factors
Financial
feasibility
Ways to enter
(Organic vs
Inorganic)
Operation viability
Value chain
analysis

66. 66
Home Textile ManufacturerMarket Entry | Moderate | Kearney (Buddy)
ICON, IIM Bangalore
CaseStatement:OurclientisaHomeTextileManufacturer.Theyhavedevelopedanew
bedsheetrangeandtheywanttolaunchthisproductinUKmarket.Helptheclientin
devisingastrategyforthesame.
BeforeIdelveintotheproblem,Iwouldliketoaskafewpreliminaryquestionsto
understandourclientbetter.Whatkindofproductsdoesourclientofferandwhatis
therevenuebreakup?Wheredoesourclientlieinthevaluechainandwheredoesour
clientoperatecurrently?Howdoesthecompetitivelandscapelooklike?
OurclientmanufacturesBedlinen,BathlinenandKitchenlinen.Therevenuebreakupis
30%,40%and20%respectively.Apartfrommanufacturing,ourclientalsohandles50%
ofthedistribution.Restishandledbya3rdparty.CurrentlyourclientoperatesinUS,
UK,India,GermanyandJapan.Itisacompletelynewproduct.Thereisnosimilar
productinthemarket.
Isthereanythinguniqueaboutthisnewbedsheetrangethatourclientwantsto
launchinUK?Atwhatpricewouldourclientbelaunchingthisproduct?Also,whatis
themainobjectiveofenteringtheUKmarket?
Goodquestion.Thisnewbedsheetrangehasauniquetemperatureregulating
property.Dependingupontheambiance,itautomaticallyadjuststhetemperature.The
pricewouldbearound40poundperbedsheet.Theirmainobjectiveistomaximize
profitincoming2-3years.
NowthatIknowenoughabouttheclient,Iwouldliketogetintostrategizingpart.I
woulddividetheentiremarketentrystrategyintothreeparts–Marketattractiveness,
EconomicviabilityandOperationalviability.Doesthisseemafairapproach?
Yes.Thisseemsfair..
Sure.UndermarketattractivenessIwouldfirstliketoanalyzethemacroeconomic
factorsandthenwouldliketodoindustryanalysis.AfterthatIwouldliketodomarket
sizingfortheproduct.
Themarketseemsattractiveenough.Let'sgetintomarketsizing.
Sure.IwouldfirstliketodividetheentireUKpopulationinto2parts–UrbanandRural.
ThenIwoulddivideeachofthembyaveragefamilysizei.e.,4forurbanand6forrural,to
calculatethetotalnumberofhouseholds.Next,basedontheincomeIwouldfurtherdivide
boththecategoriesinto3parts-Highincome,middleincomeandlowincome.Next,I
wouldconcentratemainlyonthehigh-andmiddle-incomeclasswhowouldbewillingtotry
thisproduct.Basedontherequirementofthetypeofproduct,Iwouldfurtherdividethese
twocategoriesinto2partsi.e.,singlebedsheetanddoublebedsheet.Also,Iwouldfactor
inthefrequencyofpurchaseforboththesecategoriesdependinguponthelifeofthebed
sheetsi.e.,Bedsheetsboughtin1year=(Population*Avgnoofbedsheetsowned)/lifeof
bedsheets).Hence,Marketsize=(Population)*(%UrbanorRuralpopulation/averagefamily
size)*(%Highincomeormiddleincome)*(singleordoublebedsheetsrequired)*(%Willing
topurchase)*(frequencyofpurchasein1year)*(Priceofsingleordoublebedsheet).Isthis
anexhaustivelistoramImissinganyfactor?Dowehaveanydataforthesame?
Thisseemsaverycomprehensiveapproach.Noneedtogetintothenumbers.Canyoutell
metop3entrybarriersthatourclientwouldfaceinthismarket?
Sure.Firstly,ourclientmightfaceathreatfromsubstituteproductslikeheaters,woolen
wearsandcoats.Secondly,sinceitisanewproductinthemarket,there’sahighchance
thatothercompetitorsmightcopythetechnologyandlaunchsimilarproducts.Hence,our
clientshouldfileapatentforthisproductassoonaspossible.Thirdly,ourclientmightface
dilutioninthesalesoftheircurrentproductslikewoolenbedsheetsandblanketsdueto
theirnewproductlaunch.
Okay.Thosewereactuallyafewoftheentrybarriersthatourclientfaced.Itwasnice
interactingwithyou.Let’sclosethecasehere.

67. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
67
•AHomeTextileManufacturerhasdevelopedanewbedsheetrange.
•Marketentrystrategyneedstobedecided.
•Mainobjectiveistomaximizeprofitsin2-3years.
•New bed sheet rangedoes not
have any competitor
•It has a unique temperature
regulating property
•Bed sheet costs 40 pounds
each
•Operates in US, UK, India,
Germany and Japan
•Market sizing of bedsheets
•Entry barriers
Home Textile ManufacturerMarket Entry | Moderate | Kearney (Buddy)
•Explain your market entry strategy by dividing it into adequate buckets
•Include the product SKU in market sizing
•Make valid assumptions wherever necessary in market sizing
ICON, IIM Bangalore
Market Entry
Market Attractiveness
Macroeconomic FactorsIndustry LevelMarket Sizing
UK Population
Urban
AvgFamily Size = 4
High Income
No of single or double
bed sheets required
Yearly purchase frequency = Pop*%willing to purchase * avg no of
bedsheets owned/life of bed sheets
Moderate IncomeLow Income
Rural
Economic ViabilityOperational Viability

68. 68
Telecom Operator in the 80’sMarket Entry | Moderate | Strategy& M.E. (Buddy)
ICON, IIM Bangalore
YourclientisaTelecomoperatorintheUSin1980’s.TheyruntelecomlandlinesintheUS
market.Theywanttogetintothehomesecuritybusinessandwantyoutoassessifthey
shouldenterthissegmentornot.
That’sinteresting.BeforeIgetintotheanalysis,Iwouldliketounderstandtheclientbetter.
Whatpartofthelandlinevaluechaindoestheclientservein?Dowehaveanyinformation
aboutthemarketstructureandcompetitors?
So,theclientprovidesend-to-endlandlineservicesinthemarket.Theyoperatethetotal
valuechainthemselves.TheyareamonopolyintheUSandtherearenocompetitors.
Understood.So,whattypeofhomesecuritybusinessdotheywanttogetinto?Willthey
serviceonlytheexistingcustomers?Whatistheprimaryobjectiveofwantingtogetinto
thissegment?
Thehomesecurityproductisahardware-based,plug&playsystemthatalertsthe
homeownersaboutattemptedbreak-inattempts.Itisconnectedtothelandlinesystemand
calls911incaseabreak-inhappens.Theycurrentlywanttotargetexistinglandline
customers.Theprimaryobjectiveisgrowthandincreaseinrevenues.
Great.IthinkIhaveafairideaaboutourclient.I’dliketostartbyassessingthisnew
businesslinefrom3perspectives:FinancialFeasibility(Whatisthemarketsize?Howmuch
canwecapture?Profitabilityanalysis?),Operationalfeasibility(Dowehavetheoperational
capabilitytoactuallyimplementthebusiness?),MarketAttractiveness&Risks(How
attractiveisthemarketandarethereanyriskstoenterthissegment?)
Okay,youcanstartwiththefinancialfeasibility.Let’sstartwithsizingthepotentialmarket.
Tosizethemarket,Iwouldliketogowiththedemandsideapproachandstartwiththe
population.ThecurrentpopulationoftheUSisaround34Cr.Assumingalowgrowthrateof
1-2%,thepopulationinthe80’scouldhavebeenroughly20-21Cr.Becauseitisahome
securityproduct,wemustlookatthenumberofhouseholds.ForUS,Iwouldliketoassume
afamilysizeof3becausetheyusuallyhavenuclearfamilies.Thatbringsthenumberof
housesto21/3=7Crhouseholds.Doesthisseemlikeafairstartingpoint?
Seemsfine.Tellmehowyouwouldgoaheadtosegmentthemarket?
Next,Iwouldliketosplitthemarketonarural-urbanbasisanddivideeachgroupintothe
relevantincomesegmentssuchaslow,medium,high.Ithinkhomesecuritywillberelevant
onlytomiddle-andhigh-incomesegmentofthemarket,soI’llmakeassumptions
accordinglywhilesizingthemarket.I’llalsolookattheratioofapartments,gated
communitiesandindividualhomes.Dowehaveanyinformationabouttheproposedpricing
oftheproducttoconfirmifmyassumptionsarefair?
Seemsfair.Wecurrentlycharge30$amonthforthelandlineservice.Whatdoyouthink
shouldbetherelevantpricingmodelforthehomesecuritydevice?
Forthedevice,Ithinkitissomethingthatwillbeusedbyhouseholdsforlongerdurations.
So,insteadofchargingahighupfrontcost,doesamonthlyfeeseemrelevanthere?
Yes,thatseemsrelevant.Theproposedpricingforthedeviceis12$/month.Let’sassume
thatyourmarketsizinggivesyou10Mneligiblehouseholds.Whatwouldbethemarket
size?
Theannualmarketsizeinthiscasewouldroughlybe$1.4Bn(10Mnx12x12)
Whatisyouropiniononthemarketsize?Isitbigenough?
Ontheoutset,thenumberdoesseembigenoughforthe80’smarket.ButIwouldneedto
benchmarkthisvaluetogetamoreaccurateidea.
Fair,let’ssaythatthemarketsizeisdesirable.Howwillyouanalyzetheprofitabilitynow?
ProfitabilityisafunctionofRevenue&Costs.Weknowthattherevenuesare144$/unitper
year.Tobreakdownthecosts,I’dliketounderstandmoreaboutthevaluechainthatwe
plantosetup.Willwemakethedevicein-houseorsourceitfromanothermanufacturer?
Goodquestion.WeplantopurchasethedevicefromaChinesemanufacturerandthetotal
costperdeviceis$300.Therearenoothercostsofproductionfornow.

69. 69
Telecom Operator in the 80’sMarket Entry | Moderate | Strategy& M.E. (Buddy)
ICON, IIM Bangalore
Okay,homesecurityissomethingthatpeoplebuyforlongerterms.IfIassumethatpeople
wouldusethedeviceforanaverageof5years,thetotalrevenuecomesuptobe$720
(144x5).Tobreakeven,thecustomerswillhavetousethedevicefor25months(25x12).
Doesthatseemokay?
Seemsfine.Let’smoveahead.Whatnext?
Next,istheoperationalfeasibility.We’llhavetocheckifwehavetheoperational
capabilitiestolaunchthisnewproduct.ThisincludesR&D,rawmaterialprocurement,
inboundlogistics,warehousing/storage,outboundlogistics,sellingstrategy.Butbecause
we’reprocuringaready-madedevice,Ithinkthatwedon’thavetoworkonR&Dandraw
materials.Doyouwantmetofocusonanyoftheseaspectsinparticular?
Let’sassumethattheoperationalcapabilitiesaresorteduntiloutboundlogistics.Let’sfocus
onsellingstrategies
Okay,sothesellingstrategieswillincludeadministrativeaspectsandthemarketingaspects
ofit.Underadministrativeaspectswe’llhavetocheckifourcurrentworkershavethe
capabilitiestoinstallthehomesecuritysystemorifwewillhavetohirenewworkers.We
alsoneedtoplanthemarketingstrategiestocreateawarenessanddrivepurchases.
Goodinsight.Ourcurrentworkerscaninstallthenewproduct,wedon’thavetohireany
newworkers.Also,ourclientwantstokeepthemarketingexpensestozero.Howwould
yougoaboutthis?
That’sgreat.Tokeepourmarketingexpenseszero,Ithinkwewillhavetoleverageour
existinglandlineoperationalnetworkinthemarket.Icanthinkof3specifictouchpoints
whereweinteractwiththecustomer:routinemaintenanceoftelephonelines,Callsmade
bycustomer,monthlypaymentcollectedfromcustomer.Dotheseseemokay?
Goodbreakdown.Howwouldgoaboututilizingthesecustomertouch-pointstominimize
ourexpenses?
Ithinkthateachofthesetouch-pointscanbeusedtodriveawarenessinthecustomers.
Duringthemaintenance,thestaffcanvisitthecustomersandinformthemaboutthenew
device.Secondly,wecanputavoicepromptwhichintroducestheproductwhencustomers
dialcalls.However,thismightbealittleintrusive.Thirdly,becausethetelephonebillis
generatedmonthly,abrochurecanbesenttothecustomerwhensendingorcollectingthe
monthlybill.Thesestrategieswillensurethatwekeepourmarketingexpenseszeroby
leveragingourcurrentoperationalnetwork.
Greatsuggestions.Ithinkthethirdoptionseemstobethebestone.Wecanclosethecase
here.

70. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
70
•Client is a landline provider in the US in 1980’s. They want to enter the home security business
•They want to figure out if they should enter this product category
•Monopoly, landline business,
US, 1980’s
•New home security product
launch
•Wants to assess profitability
•Monthly subscription is $12
for the security device
•Marketing costs need to be
zero
Telecom Operator in the 80’sMarket Entry | Moderate | Strategy& M.E. (Buddy)
•Clarify the business model & value chain of the client, and the objective of market entry in the start of the case
•Double check the assumptions made with the interviewer to ensure that you’re on the right track
ICON, IIM Bangalore
Market Entry
Financial Feasibility
Market Size & Share
Household Approach
Profits
RevenuesCosts
Operational
Feasibility
Value Chain Analysis
Resources & Capabilities
Selling Capabilities
Marketing Touch Points
MaintenenceCustomer CallsMonthly Billing
Administrative/ Set-up
Market Attractiveness/
Risks

71. 71
After School Tutoring ClientMarket Entry | Moderate | LEK Consulting (Manager)
ICON, IIM Bangalore
Yourclientisanafter-schooltutoringclientwhoislookingtoexploreentryintotheIndian
market.Analyzetheavailableopportunityandarriveatdecisionparameterswhichcanbe
usedbytheclienttoarriveatadecision.
Iwouldliketounderstandmoreabouttheclienttogainbetterclarityabouttheproblem.
Doestheclienthavepreviousexperienceinrunningsuchabusiness?Whatarethetarget
customersegments,andaretheirotherplayersalsocompetinginthesamespace?
Theclientisfocusedonschoolgoingchildrenastheirtargetconsumers.Youcanconsider
childreningrades1to12.Thereare10companiesintotalinthemarket,includingour
clientwhoareofferingsimilarservices.Forourclient,thisisafirsttimeventure.
Thatinformationisveryhelpful.Iwouldfurtherliketounderstandmoreabouttheproduct
offeringsfromourclient,howtheyarepriced,howdoestheclientplantohandle
distributionofitsproducts,andwhataretheavailablepromotionchannels?
Greatquestions.Theproductisatabletcomputerwithanapplicationwherestudentscan
accessthecontent.Whilesomepartofthesessionsarelive-streamed,thereisaproportion
ofcontentthatispre-loaded.ThedeviceispricedatRs1Lakh/student/year.Sinceit’sanew
venture,clientisopentosuggestionsonretailingandpromotionstrategies.
So,letmesummarizethecaseforclarity.Ourclientisanafterschooltutoringclient,
lookingtosetupamarketforitsproduct,whichisatablet-baseddevice.Itstargetcustomer
segmentisschoolgoingchildreninagegroup5-17years.Thedevicehostsbothofflineand
onlinecontentandproductispricedatRs1lakh/student/year.Theclientwantsusto
analyzetheentryopportunityinthemarket.Doesthatsoundgood?
That’sagoodsummary.Goahead.
Great.So,formyanalysis,Ilookattwoaspects:externalfactorsandinternalfactors.Within
externalfactors,Iwouldproceedfirstbydoingamarketsizingfollowedbyanindustry
attractivenessanalysis.Withininternalfactors,Iwouldfocusonoperationalfeasibility,
availabilityoffinancingandpossiblerisks.
Thatsoundscomprehensive.Let'sbeginwithmarketsizing.Tellmeyourapproach.
So,formarketsizing,I’llfocusoncalculating3values:TotalAddressableMarket(TAM),
ServiceableAddressableMarket(SAM),andServiceableObtainableMarket(SOM).To
calculateTAM,IbeginwithtotalpopulationofIndiaas1.4Bn.Sincemedianageofthe
countryis28years,Icanassumethatnumberofpeopleinagerangeof0-28is700Mn.
Doesitsoundgoodsofar?
Yes,theapproachisfine.Carryon.
Next,wecalculatenumberofchildreninagegroup5-17yearsold.Assuminguniform
distributionofage,numberofchildrenintargetagegroupis(12/28)*700Mn=300Mn.
Assumingaruraltourbansplitof2:1,weget200Mnchildrenintargetagegroupinrural
areas,and100Mnchildreninurbanareas.Thenumberofschoolgoingchildreninthisage-
groupiscalculatedbyusingGrossEnrollmentRatio.
Thatiscorrect.ItisgoodthatyouknowGrossEnrollmentRatio.Tellme,ifGERofIndiais
0.7,andGERinruralareasis0.6,whatistheGERofurbanareas?
Well,lettheGERbex.So,0.7*300Mn=0.6*200Mn+x*100Mn.ThisgivesusGERof0.9for
urbanareas.So,TAMhereisschoolgoingchildreninagegroup5-17years,i.e.,210Mn.
Verygood.TellmehowyouwouldproceedwithcalculatingtheSAM?Assumeashareof
walletof20times.
Okay,sinceshareofwalletis20times,weneedtoassumeaminimumparentincomeof20
lakhsperyeartoaffordthisdevice.Wecanuseincometaxdatatocalculatenumberof
peoplewhofallinthiscategory.Assumingtotaltaxpayerstobe3.5crore,weknow
minimumincomerequiredtopaytaxesisRs5lakh/year.Assume5taxslabsbeyond5
lakhs,withhighestslabbeing20lakhsandabove.So,numberofpeopleearning20lakhs
andaboveis70lakhs.
Good.Thisisanintuitiveanalysis.Howwillyouusethisdatanow?
So,percentageofpopulationwithrequiredincomeis(70lakhs/1.4Bn)*100=0.5%.So,0.5%
ofchildrenamongmyTAMof210Mncanactuallyaffordmyproduct.Thisleavesmewith
1.05Mnchildrenwhocanaffordmyproduct.

72. 72
After School Tutoring ClientMarket Entry | Moderate | LEK Consulting (Manager)
ICON, IIM Bangalore
WhatotherfactorswillyouconsiderwhenlookingatSAM?
Amongthechildrenwhocanaffordmyproduct,therewillbemanywhomaynotoptfor
afterschoolcoaching.Amongthosewhowantcoaching,manymaypreferphysicalclasses
toonlinetutoring.Assumingthat10%ofthe1.05Mnchildrenareactuallyinterestedinour
service.ThatleavesmewithaSAMof1.05lakh.
Excellent.That’sveryclosetothenumberweactuallygotinthecase.AssumeSAMtobe1
Lakh.NexttellmetheSOMandtotalpotentialrevenuethatourclientcanhopetocapture.
Weknowthatincludingtheclient,thereare10companiesinallthatprovidesimilar
services.Dowehaveanydatatoindicatewhethertheclient’sproductisdifferentiatedin
anymanner?
No.Assumeeachfirmprovidesidenticalofferings.
Then,wecanassumethemarkettobeequallydividedamongeachfirm.ThisgivesaSOM
of10,000studentsforourclient.Atthecurrentprices,ourclientcancaptureapotential
marketrevenueofRs100crores.
Okay,soatthisrevenuelevel,shouldtheclientactuallymakethedecisionofenteringthe
market?
TodecidethatpotentialrevenueisnottheonlynumberIwouldfocuson.Itsalsoimportant
tounderstandwhatmarginsourclientcanhopetomakebysellingtheseproducts.To
calculateprofitmargins,wecanlookatthecoststructureofthebusinessbyanalyzingthe
overallvaluechain.Next,wecalculatePATtounderstandburdenoffixedassets,leverage
andtaxationforthisbusiness.Allthesewillbefactorsinmyanalysis
Thatsoundscomprehensiveenough.Supposetheclienttellsusthatheisunhappywiththe
currentmarketshareandwantsustoexplorewaystoexpandmarketshare.Whatwould
yourecommendtotheclient?
Whenwetalkofincreasingmarketshare,ourfocusisontoplineorrevenuegrowth.There
are3leversofrevenuegrowth:priceoftheproduct,salesvolume,andproductofferings.
Wecanindividuallyanalyzeeachlevertocheckitsimpactonmarketshare.
Analyseeachleverwithrespecttothiscase.
So,changingpricewillnotreallyimpactsalesasawhole,sincethedemandamongthe
targetcustomersegmentispriceinelastic.Ourclientcanfocusonincreasingvolumeof
salesbyexpandingtheirdistributionnetworkandadvertisingcosts.However,foranewly
setupbusiness,thecostofexpandingreachatthisscalemightbeveryhigh.
Finally,Ibelievetheclientcanfocusoncreatingadifferentiationinthemarketbyproviding
abetterrangeofservices.Akeytargetmarketcouldbethehighstakesexaminations
marketsuchasJEE,NEETetc.Theclientcanalsofocusonunbundlingitsofferingsand
expandingintoamarketpurelybasedoneducationalcontent.Lastly,theclientcanexplore
expandingintonewgeographieswithsimilarcurricularstructures.
Thesearegreatrecommendationsandinlinetowhatwedidwhilesolvingthiscase.Great
analysisoverall.Ireallyenjoyedourconversation!
Thankyou,sir.Ireallyenjoyeddiscussingthiscasewithyou.Hopeyouhaveapleasantday
ahead.
Alright.Thanksalot.Let'sclosehere.

73. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
73
•Client is an after-school tutoring service provider
•Looking to expand into the Indian market
•Client has asked us to evaluate the attractiveness of the opportunity
•Target customers: School
going children in grade 1-12
(Age 5-17)
•Product provides both offline
and online content
•There are total 10 firms
(including client) providing
similar services
•Price = Rs 1 lakh/student/year
•Assume a share of wallet of 2
times to evaluate affordability
After School Tutoring ClientMarket Entry | Moderate | LEK Consulting (Manager)
•Structure the problem following MECE approach at each stage
•Long cases are intended to test patience. Stand firm on your analysis.
•Market sizing should be done by calculating TAM, SAM, SOM.
ICON, IIM Bangalore
Total Population
(1.4 Bn)
Below median age
(700 Mn)
Above median age
(700 Mn)
Age 5-17
(300 Mn)
Remaining
(400 Mn)
Age 5-17 that go to
school GERTotal children in age
5-17 (300Mn)= X
Total Addressable
MarketServiceable
Addressable Market
Share of wallet to
find affordability
Calculate % of TAM
who can afford my
product
Filter further based
on customer appeal
SAM = 1 Lakh
Serviceable
Obtainable Market
SOM = SAM/
number of identical
firms
SOM = 10,000

74. 74
Uber for HelicoptersMarket Entry | Challenging | GEP (Partner)
ICON, IIM Bangalore
YourclientwantstostartanUberforhelicopters.Theyhaveseveralquestions:
1.Whatdoyouthinkoftheproposedidea?
2.Wherewouldyoustartthisservice?
3.Whowillthecustomersbeandwhywouldtheypay?
4.Also,doaguesstimateandcalculatethemarketsizeforthisservice.
BeforeIbegintacklingalltheseissues,I’dliketoaskafewclarifyingquestionsaboutthe
company.Whatistheclient’sobjectivebehinddoingso?Arethereanyspecificmetricsthe
clientislookingtotracktochecktheirprogress?
Theclientissimplylookingtostartthisnewserviceandmakemoney.
Alright.AndistheclientlookingtostartthisbusinessinIndiaonlyorshouldIconsider
internationaloperations?
Indiaonly.
Alright.Andwhatdoestheclientdocurrently?
Whydoyouthinkthatisrelevanthere?
Iamtryingtounderstandthestartingpointfortheclient.Forinstance,Iwouldliketo
understandwhethertheclientownsafleetofhelicoptersoristhereaplantoleasethese
vehicles?
Youcanassumethatwehavemoney.ThereisnootherinformationthatIcanhelpyouwith.
Sure,I’lljusttakeaminutetostructuremythoughtsbeforeIbeginwiththeanalysis.
Sure.I’llleavetheroomforfiveminutes.Ihopethat’llbeenoughforyoutofindthe
answers.
(Upontheinterviewer’sentry)Ithinkthatthemajoradvantageoftheproposedservice
wouldbethetimesavedandofcoursetheluxuryandconvenienceonoffer.
Sure.Pleasemoveontothenextquestions.Wherewouldyoustartthisservice?
ConsideringasimilarservicehasstartedinBangalorerecently,offeringhelicopterridesfrom
thecitytoBangalore,IwouldsuggestthattheclienttargetsthemajorIndiancities.Wecan
targettheprimary4-5citiestobeginwith-namelyDelhi,Mumbai,Bangalore,Chennai.
Moreover,wecanlookathillstationsaswell,wherehelicopterservicesarealreadyan
acceptablemodeoftransport.Forinstance,religiousplaceslikeVaishnoDevi.
Wherewouldthedestinationsbeforthehelicopterridesinthesecities?
IfweconsidertheexampleofrecentlystartedhelicopterridesinBangalore,theproposed
advantageisdodgingtheinfamoustrafficofthecity.Wecanleveragesuchadvantagesinall
thesecitiesandtargetthehighlyfrequenteddecisions.Forinstance,inMumbai,wecan
startridesfromthecitytoairportorfromthecitytoKhandalaandnearbytourist
destinations.InDelhi,theobvioustripisfromthecitytoGurgaon,butweneedtoconsider
thatthemetroinfrastructureinDelhiisverygood.So,wecantargetthepopular
destinationsfromDelhisuchasJaipur,Agra,etc.Inhillyareas,wecanobviouslyoffertime-
savingandquicktransport.
Greatpoints!Pleasemoveahead.
Sure.Sincetherewouldbeveryhighcostsinvolved,thecustomerswouldcomefromthe
ultra-richclassofthepopulation,atleasttobeginwith.WecandivideIndia’spopulationin
60-30-10,i.e.,Poor-LowerMiddle,UpperMiddle,andRichclass.Iwouldsaythat
consideringthisisanewserviceandhighcostsareinvolved,theearlyadopterswouldcome
fromonlyhalfoftherichclass,i.e.only5%ofthepopulation,atmost.
Great!Canyoutellmewhycustomerswouldpayforthisservice?
Sincethecustomerswouldcomefromtheultra-richsection,theywouldbewillingtopay
forthetime-savedandconvenienceonoffer.

75. 75
Uber for HelicoptersMarket Entry | Challenging | GEP (Partner)
ICON, IIM Bangalore
Fairenough.Let’smoveontotheguesstimate.Noneedtobeverystrictaboutthe
numbers.Justgivemetheapproachwithloosenumbersandmakeassumptionswherever
necessary.
Sure.Let’sassumewearetargeting4majorcities.ConsideringMumbai’spopulationis
approx.2crore,Delhi’sisalittlemore,andBangalore’sisalittleless,wecanassumethe
meanpopulationtobe2crores.Thatgivesusatotaltargetpopulationof8crores.Again,I
woulddividethispopulationintobucketsof60-30-10intermsofwealthoreconomic
prosperity.Thatleavesuswithapopulationof80lakhs.Again,consideringthenatureof
thisservice,it’lltaketimetopickupwithcustomers.Atthemost,ifweassumetobring
50%ofthissegmentintothefold,weendupwithapopulationof40lakhs.
Great!Howwillyoupricetheservice?
Ithastobevalue-basedpricinginthiscase.Let’sassumeanaveragetripof1hour.Now,a
salaryof30-40lakhsputsyouintheupperclassofIndianpopulationcomfortably.Sincewe
aretargetingtheultra-richsection,Iamgoingtoassumeanincomearound60-70lakhs,
(72)forconvenience.Thisgivesusamonthlyincomeof6lakhsor20,000perday.Ifwe
assumeaworkdayof10hours,thatleavesuswithanhourlyincomeof2000.Ifit’sanhour-
longtripwithahelicopter,itwouldsaveatleast3hoursforthecustomer.Therefore,we
caneasilypricetheserviceat8000-10000rupees.
Nicepoints!Anythingelseyouaremissing?
Yes.Wearrivedatapopulationof40lakhs.Becausewedidnotdoage-segmentation,we
needtolookatfamilies.Assumingafamilysizeof4,wearriveat10lakhfamilies.Notgoing
intotheoccupancycapacityofthehelicopter,ifweassume,onaverage,2membersfrom
eachfamilytobecomeacustomerinthefirstyear,wearriveatanumberof10
lakh*2*10000,i.e.,amarketsizeof2000crores.
Wonderful!Youhavementionedthe‘ultrarich’sectionacoupleoftimes.Canyoutellme
sometraitsofthistargetsegment?Liketheirprofessionorothertraits?
Iwanttosaythatthesewouldbepeoplewhotakecharteredflightsoralwaystravel
businessclass.Butsincewestartedwiththeideaof‘Uber’ofhelicopters,Ibelievethe
motiveshouldbetomaketheserviceasaffordableaspossibleinthefuture.
Great!That’swhatIwaslookingfor.Wecanclosethecasehere.Thankyou.

76. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
76
•The client wants to start an Uber for helicopters.
•Need to answer multiple questions –including where will you start the service, who will the customers be and why will they pay.
•Also, a guesstimate of the market size is required.
•Uber for helicopters
•No other information on offer.
•Budget is not a constraint,
only the approach is required.
Uberfor HelicoptersMarket Entry| Challenging | GEP (Partner)
•Important to control nerves when the interviewer does not share any information. Keep in mind that if there is no information, they’re looking for the
approach only.
•Always state your assumptions out loud and buy in the interviewers before proceeding.
ICON, IIM Bangalore
Market Size
4 Major Cities
(8 Cr Population)
60% -480 lakh
Poor & LMC
30% -240 lakh
Upper MC
10% -80 lakh
Rich
50% adoption
40 lakh
10 lakh families
(4 members each)
Price
Rs 10,000/ head
Market Size
Rs 2000 Cr

77. IIMB Pricing Cases
2022-23
77ICON, IIM Bangalore

78. ICON, IIM Bangalore 78
Pricing Framework
Cost
Market Price
Value to consumer
Profit to seller
•Brand
•Quality
•Innovation
•New-found utility
GAP
Pricing
Inward Looking
Cost Based
Costs
-R&D, one time costs
-Production costs –
Fixed & Variable
-Other specific costs
Returns
-Markup
-Margins
-Breakeven Period
-Payback Period
External Looking
Benchmarking
Industry
-Structure
-Feature of Others
Substitutes,
Complements or other
proxies
Features
-Additional Features
-Differenciatingsbenefits
-Others’ Price range
Value Based
-Willingness to Pay
-Opportunity Costs
-Extrapolate Benefits

79. Factory OwnerPricing | Easy | Bain (Partner)
Your client owns factories which they lease out to a manufacturing firm. They are currently
exploring whether to automate the factory or not and, if so, the new pricing. Could you
advise them on this?
I would like to ask a few preliminary questions about the client. Could you let me know a bit
about their factories and current pricing system? Also, why are they looking into
automation?
The client owns three factories in Coimbatore and leases them to textile manufacturing
firms. Their current pricing is an annual lease and is competitive with the market. The client
wishes to see if they can increase their profits with automation. Can you think about where
all there will be cost reductions through automation?
I would like to map this on the value chain. So, the factory process for the textile firms can
be broken down into raw material procurement, manufacturing, packing and distribution.
Through automation, they can probably reduce raw material and manufacturing expenses
(utilities and labour). However, they will find the increased fixed cost of investment and
maintenance as well.
That sounds correct. Can you now tell how they should go about pricing it?
So, I would start with floor pricing based on the increased cost. Do we have any information
on the cost of investment and maintenance of machines? There can also be increased
labour costs for operating new machinery.
Assume that the new machinery costs INR 2.5 Cr, with an annual maintenance cost of INR
50L. The net labor cost remains unchanged.
The client can look at spreading the cap-ex over 5 years. Hence the initial annual cost can go
up by INR 1 Cr. This would be the floor pricing. To get a ceiling, we need to know the
additional value generated by automation. Do we have any information on that?
Assume that the current margin of the firm is INR 50 Cr & automation would expand it by
10%.
This means additional annual savings of INR 5 Cr. Hence, the client can price the automated
factory lease at an additional INR 1-5 Cr. You told me that we are already competitive in the
pricing; hence we will need to find a benchmark we can take to price between INR 1-5 Cr.
That’s correct. Can you think of some options?
I can think of 3 options:
1.Look in the past to see how price increases were negotiated and what might be the
appetite of the textile firm
2.Try getting industry data on what are the percentage increase in lease prices when new
efficiencies are introduced
3.Initially propose an increase of INR 1Cr with gradual increase of INR 50L each year
Thatsoundsgood.Thankyouforyourtime.

80. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
80
•Factory owner, leased out factories to textile firms
•Wants to know the change in pricing for automation
•Wants to increase revenues
from lease
•New machinery costs INR 2.5
Cr, with an annual
maintenance cost of INR 50L
Factory OwnerPricing | Easy | Bain (Partner)
•Break down problems in structured way.
•Take regular interviewer buy-ins for all the assumptions which you make
ICON, IIM Bangalore
Value chain
analysis for cost
saving
Raw materialManufacturingPackingDistribution
•Reduction in raw
material for new
automated
machines
•Utilities
•Labor
•Utilities
•Labor
•Unaffected
Pricing
Cost based
pricing
Value based
pricingBenchmark to set actual price
Price floor Price ceilingActual price

81. 81
New Medicine LaunchPricing | Moderate | McKinsey (Partner)
ICON, IIM Bangalore
APharmacompanyhasdevelopedanewproducttocontroldiabetesforpatientsinIndia
andneedyourhelpinpricingit.
That’saninterestingproblem.CanIasksomequestionstobetterunderstandtheclient?
Sure,goahead.
Whatistheobjectiveofpricing?Isittomaximizetheprofitorsomethingelse
Yes,itistomaximizetheprofit.
CanIhavemoredetailsabouttheproduct?Basically,howitisdifferentfromnormalinsulin
injection&informationonhowrestricteditsavailabilitybei.e..Willitbeavailableoverthe
counterorrequiresaprescription?Andhowisthecompetitivelandscapeinthemarket
It'sanoraltabletinsteadofaninjectionandhaslessersideeffects.It'llbeavailableoverthe
counterandthemarketishighlycompetitive.
I want to breakdown the Pricing of the tablet into three broad strategies -1) cost based 2)
Competitor based 3) Value based pricing
The final price will be dependent on all the three factors
Yes,thatsoundsfine.Whydon’tyoulistdownallthefactors.Idon’twantyoutogointo
details.Justtellmeallthefactors.
Okay,letmestartwithCostbasedapproach.OverhereTotalcostiscomposedofone-time
R&Dcosts+CostofproductionwhichagaincanbedividedintoFixedcostandVariablecost.
Thisalongwithourproductionvolumeswillgivetheminimumpriceforthetablet.Weneed
tonowfindprofitmarginintopofthat.Profitmargincaneitherbesomethingcompanyis
targeting,orwecanusesomeproxytofindit.
Yes,that’ssoundfair.Let’sexploreotherfactorsyouhavelistednow.
Sonowwecanlookintocompetitionandsubstitutesforourproductandfigureoutaprice
basedonourproduct'spositionwithrespecttothem.Forthat,Ialreadyhavethe
informationonlessersideeffectsandthefactthatmedicineisinoralformwhichmakesit
superiortotheinjection-basedinsulin.Isthatfairtoassume?
Yes,thenewproductissuperiortoinsulin.
Inthatcase,weshouldcertainlypriceourproductmorethanInsulinasweareproviding
morevaluethaninsulin.Again,howmuchshouldbethemarkupdependsuponthe
perceivedbenefitsofourproductamongsttheconsumers.
Yes,that’scorrect,anythingelseyouwanttoconsiderhere?
Yes,wecanalsoconsidersubstitutesintheformofAyurveda,Homeopathywhichmighteat
uponourMarketshareifwepricetoohigh.
That’safairassessment.Let'smoveon.
Okay,nowIwanttoconsiderhowmuchvalueweareprovidingtothecustomerandhow
muchwecancaptureit.Forthatwecandopriceelasticityanalysisoftheproducttoarrive
atapricewhichmaximizestheprofitandcanalsoinvestigateSupplyv/sDemandgapofthe
existingmarkettodeterminethebestpriceoftheproduct.
Yes,that’sadetailedenoughanalysis.Let’sstopthecasehere.

82. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
Cost
Fixed Cost
RnDSalariesDepreciationRent
Variable Cost
SourcingManufacturingDistributionSales and
Marketing
Pricing
Cost
Competitor
Value based
1.Cost of production -fixed cost and variable cost
2.R&D expenses
1.Competition: Insulin injection
2.Substitutes: Ayurveda, homeopathy
3.Value Addition:
•Lesser Side affects
•oral tablets instead of injection
1.Willingness to Pay: Elasticity analysis
2.Supply and Demand tradeoff
82
•Oral tablet for diabetes patients
•Lesser side affects
•High competition in the market
•Follow a qualitive approach
rather than a quantitative
one
New Medicine LaunchPricing | Moderate | McKinsey (Partner)
•As interviewer hinted for qualitative discussion, the candidate made sure that all the factors were listed out before going in detail to anyone.
•The interviewer was trying to speed up the case. Make sure that you are not taken aback by it
•My case ended abruptly when interviewer started asking me about one of my resume points, make sure that you are confident in such situations, and be thorough with your resume. Don’t lose the structured approach even if you are asked a question from your resume.
ICON, IIM Bangalore

83. Autism Digital Therapy Product Pricing | Moderate| McKinsey (Partner)
Yourclienthasdevelopedanewdigitaltherapyproductforautisticchildren.Theproduct
imitatesthetherapythatisprovidedbyadoctorinpersonthroughuseofinteractive
videos,audiobots,gamesetc.Howwouldyougoaboutpricingtheproduct?
Sure,Iwouldliketoaskafewpreliminaryquestionsabouttheproduct.Cantheproductbe
consideredareplacementoftherapythroughdoctors,orhowisitdifferentfromit?Also,
whatisthecompetitivelandscapelike?
Theproductreducestheneedfordoctortherapyaschildrencanuseitathome.Plusitcan
alsoreachpeoplewhocurrentlydon’thaveaccesstodoctortherapy.Althoughdoctorscan
alsouseittoexpandtheirreachthroughthedigitalsolution,buthereyoucanassumeit
reducestheneedfordoctor’stherapyby50%.TheproductisavailableinEnglishlanguage
andisusedonatablet.Intermsofcompetition,youcanassumethereare2-3othersimilar
newproductsinthemarket.
Thatisinformative,thanks.Icanthinkofthreebroadwaysofpricingtheproduct–1)cost
based2)competitorbasedand3)valuebased.Icanstartoffwithvaluebasedasthevalue
ofthisproductisdirectlyequivalenttotherapy.Isthereinfoonthecostsofnormaldoctor
therapy?
So,doctortherapyisveryexpensiveandcosts~INR3Lperyear,anddoctorsarevery
scarcelyavailable,whichiswhythisproductcanreachouttothosewhocannotaffordor
availsuchservices.
So,iftheproductcanreducetheneedfordoctortherapyby50%,itimpliesitcanbepriced
atINR1.5Lperyear.Butthisistheupperlimitasitwouldnotsolvetheproblemof
affordabilityandscarcityofdoctors,andthiswillnotbecompetitivewithotherdigital
therapyplayers.Next,wecanlookatbenchmarkpricing.Isthereanyinfoontheirprices?
Nonotreally,itisanovelproductandthereisnoinfoonothercompetitors'businessplans.
Maybeyoucanfocusoncostbasedinstead.
Sure.Iwouldliketoproceedbydividingcostsintofixedandvariablecosts.Thefixedcosts
wouldbeamortizedovermultipleperiodsanddividedwiththeuserbasetoarriveatfixed
costperuserperyear.
Thenwewilladdvariablecostsandadesiredprofitmarginontopofthese.Isthereany
dataavailableonthesefigures?
That’sgood.Thetotalfixedcostisknown,buthowwouldyougoaboutarrivingatthe
expecteduserbase?
Wecanlookatthetotalmarketsizeandmultiplywithexpectedmarketshare
Soitisestimatedthatthereare5millionautisticchildreninIndia.Howwouldyouproceed?
Iwouldliketocomputetheaddressablemarketfromthis.Iwouldliketoapplyfiltersof1)
incomelevelsand2)internet/tabletpenetrationandEnglish-speakingpopulationonthis
totalmarketsize.Basedonthiswewillreachatthefollowingnumberforthetotal
addressablemarket-
Income LevelsNo. of
children
Internet/Tablet Penetration/
English speaking Population
No. of
childrenTotal
Low Income (50%)2.5 mn10%0.25 mn
2.15
mnMed Income (40%)2 mn70%1.4 mn
High Income (10%)0.5 mn100%0.5 mn
Great,doyouthinkthisistheaddressablemarketorwouldtherebeadditionalfilterson
this2.15millionfigureyouhavearrivedat?
Yes!Wehaveto,nowaccountforcompetitorsanddoctorsalso.Sincethisproduct
competeswithdoctorsalso,theymightcreatenegativepublicityforsuchaproduct.Given
thatthismarketwouldbesplitamongst2-3competitorsand,alsocompetingwiththe
doctors,wecanaimtocapture25%ofthis,approximately0.5million.
That’sverygood.Wearerunningouttime.Arethereanymorefiltersyoucanthinkof?
Yes,otherfactorscouldbe1)peoplenotwillingtogettreatment/socialtaboos2)people
optingforalternativetreatmentsapartfromconventionaltherapy.
Thanks.Wecanclosethecasehere.Itwasapleasureinteractingwithyou.

84. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
84
•Pricing problem for a digital therapy solution for autism
•The product imitates the therapy that is provided by a doctor in person through use of interactive videos, audiobots, games etc. It is
available in English language and needs a tablet to be used
•Learn about the product first,
how is it different from
normal doctor therapy. The
value provided is similar to
conventional therapy, use that
for value-based pricing
•For user base calculations, use factors of internet and tablet
availability, and English-
speaking population
•Maintain balance between
qualitative and quantitative
approach.
Autism Digital Therapy ProductPricing | Moderate| McKinsey (Partner)
•Use the data provided by interviewer thoughtfully, factors of English language product and tablet were used later in interview
•When interviewer is asking to list down factors, focus on qualitative aspects instead of quantitative numbers
•The pricing case ended with a mix of guesstimate and market sizing, do not rigidly stick to frameworks and focus on problem stated by interviewer
ICON, IIM Bangalore
Pricing
Cost Based
Fixed costs per year
per user
Total fixed costs per
yearNo of users
Variable costs
Competitor/ Substitute
Based
Novel product, no
mature competition
Value Based
50% of conventional
therapy costs –INR
1.25L

85. 85
Tooth brush manufacturerPricing | Moderate| Accenture (Buddy)
ICON, IIM Bangalore
Yourclientisatoothbrushmanufacturer.TheirR&Ddivisionhascomeupwithaproduct
innovationwhichisatoothbrushwhichstaysforever.Theywantyoutoanalyzethepricing
strategyforthetoothbrush.
That’sinteresting.BeforeIdivedeeperintotheanalysis,Iwanttounderstandabitmore
aboutthecontext.CanIaskafewclarifyingquestions?
Suregoahead.
Iwouldalsoliketoknowmoreaboutthefirmandtheproduct.Whatproductsdothey
currentlymanufactureandthegeographytheyoperatein?
TheclientonlysellstoothbrushesandhasoperationsonlyintheUS.Iwouldlikeyoutolook
intothefactorswhichinfluencewhethertheclientshouldgoaheadwiththeproduct
release.
Weneedtofirstanalysethecustomerneedfortheproduct,thenthefirm’sabilityto
capturevalueandtheabilitytoscalethemanufacturing.Andthedifferentiatingfeaturethe
producthasovertheexistingproductwhichwillincreasewillingnesstopay.
Nomarketstudyhasbeendonefortheproductyet.Whatwouldbesomeoftheprosand
consforthefirmtointroducetheproduct.
Theproswillbethefirmwillbehavingthefirstmoveradvantageandwillbeamarket
disruptor.Thefirmcanusetheexistingexpertiseinthetoothbrushmanufacturing,
operatorsandmarketing.Theconswillbethatwedonotknowtheneedfortheproduct
andthenewproductwillbeaonetimesellandthereisacannibalizationoftheexisting
traditionaltoothbrushbusinessofthefirm.
Pleasesuggestthepricingstrategyforthenewtoothbrush.Assumethatthefirmhasspent
ontheR&Dalreadyanditisasunkcost.
Wecanconsider3typesofpricing.
Costbase:Thiswouldbetheminimumpricethattheclientmustchargetheclient
basedonthecostsincurredforR&D.Irrelevantasitissunkcost.
Competitor–basedpricing:Sincethere’snocompetition,itwouldnotberelevant.
Valuebasedpricing:Thisisthemaximumpricethatthecustomerwouldbewillingtopay
basedonthevaluethatourproductofferstothem.
Since,thefirmmightwanttocapturemostofthevaluefortheinnovation,canIgoahead
withthevalue-basedpricing.
Pleasegoahead.
Forcalculatingthevaluethatthecustomerwillgainoutoftheeternaltoothbrush,I’m
assumingthatthetoothbrushwillbeusedbyonlyoneperson,becauseofhygienereasons
andhe/sheusesitforthelifetime.Also,thatthere’sonlyonetypeforkidsandadults.
Youcanproceedwiththeassumptionsandonepersonusesthetoothbrushforlifetime.
Thevalueofthetoothbrushwillbepresentvalueofallthetoothbrushesthepersonwill
buyinalifetime.Assumingthatcostofonetoothbrushis$1,lifeexpectancyis70years,
andonepersonreplacestoothbrushoncein3months.Assumingadiscountrateof7%,the
lifetimecostoftoothbrusheswillbearound$57.Weneedtopriceslightlylowerthanthis.
Supposeacompetitorapproachesyoutobuythisinnovationfor$10B,whatisyour
suggestiontotheclient.
AssumingUSpopulationof300M,themarketsizeis$17BconsideringonlytheUSmarket
andsincethefirmwillhavepatentsforthisinnovationandpotentialtoexpandinother
markets,thefirmshouldnotsellitfor$10B.Thegrowthdependsuponthebirthrates.
Canyouthinkofsomewaystheclientcanfurthertheirrevenuesfromtheproduct.
TheclientfirstneedstofocusontheUSmarketandgainmarketshare.Thefirmcanalso
thinkaboutsellingthelicenseforthetechnology.Theycanfurtherexpandtonew
geographiesandalsocanthinkofleveragingthistechnologyinotherproducts.
Greatrecommendations.Wecanclosethecasenow.

86. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
86
•Pricing strategy for an eternal toothbrush
•No competitors
•R&D expenses are to be
assumed as sunk cost
•Consider discounted
cashflows
•Growth strategy framework
for recommendations on
increasing the revenues
•Inflation factor can also be
considered in calculating the
present value
Tooth brush manufacturerPricing | Moderate| Accenture (Buddy)
•Theinterviewerwasimpressedbythe recommendation on how the value of the innovation can be increased by using the underlying technology in other
products
•Askforinterviewbuy-intoyourapproachateverystep.Don’thesitatetogivecreativesolutionsortoderiveinsightsfromyourexperience.
ICON, IIM Bangalore
Pricing
CostBased ValueBasedCompetitorBased
Irrelevant as it is
stated by
interviewer to
treat as sunk cost.
No data available.
Irrelevant as
there are no
competitors.
Calculated using
the present value of
future expenditure
on regular
toothbrush which is
57$ (below eqn)
Market Size computation:
Population*toothbrush price
=300M*$57
=$17B
Growth= birth-rate
!"#$#%&'($))$ℎ+%,-ℎ=$1+$"
("$%.%'/))+$"
("$%.%'/))^,+⋯$"
("$%.%'/))^('%∗.)

87. 87
Coca Cola PricingPricing | Moderate | GEP (Associate)
ICON, IIM Bangalore
YourclientisCocaCola.Thefirmisplanningtoincreasethepriceofit’sproduct.What
wouldyouadvisethem?
SobeforegoingaheadIwouldliketoasksomepreliminaryquestionstohaveaclearideaof
theproblemstatement.CanIgoaheadwithmyquestions?
Sureyoucan.
Socanyoutellwhatistheobjectiveofthefirminincreasingtheprices?Hastherebeen
changeintheproductsforthechangeinpricing?
Theywanttoincreasetheirrevenue.Thatistheonlyreasonforthepriceincrement.There
hasbeennochangeinpricing
Fairenough.CocaColahasalargeproductmixincludingPETBottles,cans,etc.Theprice
incrementisapplicabletowhichoftheseandinwhichgeography?Alsodowehaveany
datawithregardstohowmuchisthecurrentpriceandhowmuchincrementisthefirm
planning?
Answeringyourfirstqs,theyareplanningthispricingchangeinIndiaandforthecanned
beverages.ThecurrentpriceisRs23/canandtheincrementisRs4/can.
Great,thedatagivesmeamoreclearpicture.IwouldliketoknowIfwehaveanydata
regardingCocaCola’smarketshareandalsotheCompetitorlandscape.
Sure.CurrentlyCocaColahas50%ofthemarketshare.It’smaincompetitorisPepsiwhich
holdsabout45%ofthemarketshareandtheremaining5%iswithlocalfragmented
players.
SonowthatIhaveaclearideaaboutthecompanyandit’scompetitors.Iwouldliketolook
attheEconomicfeasibilityinvolvedinhikingtheprice.CanIgoaheadwiththisapproach?
Yes.Itsoundsgoodtome.Tellmehowwouldgoaboutevaluatingtheeconomicfeasibility.
Sure.Firstly,EconomicFeasibilitycanbestatedas:
EF=[Marketsize*Marketshare*Growthrate*(Price–VariableCost)}
Wehavedataregardingthemarketshareandthepricepoints,inordertofigureoutEFI
wouldgoaheadwithacomparativeanalysis.Canyougivemesomeregardinghowour
marketshareorgrowthratewillbeaffectedifweincreasetheprice
Itisavalidquestion.Wehavedatainsightsfromtheindustryanalysisthatincreasingthe
pricebyRs4willreducethegrowthratefromthecurrent6%to1%peryear.
Thatisausefulinsight.Soconsideringthatourvariablecostswon’tchangesincewearenot
makingchangesinvolumesofproductionortheprocess.Iamnotsureabouttheexact
marketsizeofthecarbonateddrinksmarketthatCocaColaisintosoIwillassumeamarket
sizeof2billion.CanIgoaheadwiththeseassumptionsinmindfortheanalysis?
Yesyoucangoaheadwiththeseassumptions.
Sointhecasethatwechangethepricing:
EF=2bn*0.5*0.01*27=0.27bn
Ifwedon’tincreasethepricing:
EF=2bn*0.5*0.06*23=1.38bn
Soincreasingthepricingdoesn’tseemlikeagooddecisiongiventhatthereisadrastic
changeingrowthrates.Doestheanalysislookintensiveenoughordoyouwantmeto
considersomeotherapproach?
Noyouranalysislooksgood.Canyoutellmewhenwouldbethepricingchangejustified?
Sure.Giventhatwearenotmakinganychangesintheproductcurrently,anupgradeinthe
candesign,beveragequantityoranewproductvariationcanhelpjustifythepriceincrease
asthesefactorscanhelpusexpandthemarketshareitselfandalsogiveaboosttothe
growthratewhichisforecastedtobe1%postpricingchangesareimplemented.
FairEnough.Wecanendthecasehere.Itwasagooddiscussion.

88. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
88
•Evaluate if increasing the price would be a feasible decision for Coca Cola
•Price change to be applicable in India for their canned beverages
•Client wants to increase their revenues
•Market share of Coca Cola –
50%
•Main competitorPepsi holds
45% market share
•Current price of Can products
is Rs 23. Price to be increased
by Rs 4
•Current YoY growth of Coca
Cola is 6%
•If Pricing change is
implemented the growth rate
falls to 1%
Coca Cola PricingPricing | Moderate | GEP (Associate)
•Details about objective, product, competitor landscape, current pricing and growth rate should be asked in the beginning
•Confirm with the interviewer at each step if your approach seems logical. Voice any assumptions that you are making or ask for any data you feel
necessary to go ahead with your analysis
•Have a set of preliminary questions and framework draft in your mind. Navigate the framework as you proceed with the case.
ICON, IIM Bangalore
Pricing
Options
Maintain Current
Prices
Growth for next year –6%
Price –Rs 23
Current Market share 50%
Economic Feasibility / Rev projections =
2Bn * 50% * 0.06 * 23 = 1.38Bn
Increase Prices
Growth for next year –1%
Price –Rs 27
Current Market share 50%
Economic Feasibility / Rev projections =
2Bn * 50% * 0.01 * 27 = 0.27Bn

89. IIMB Growth Strategy Cases
2022-23
89ICON, IIM Bangalore

90. ICON, IIM Bangalore 90
Growth Strategy Framework
Four
Growth
Strategies
1. Market
Development
Strategy
4. Diversification
Strategy
3. Product
Development
Strategy
2. Market
Penetration/
EntryStrategy
ExistingNew
New
Existing
PRODUCTS
MARKETS
•Market growth rate lower
than management’s growth
expectations
•High market share w.r.t.
closest competitor
•Concentrated in a small
market
•Demand in other markets
•Typical Market Entry Case!!
•Market growth rate in line
with management’s growth
expectations
•Low market share w.r.t.
market leader
•Growth rate w.r.t competitor
•A derived profitability case!!
•Market growth rate lower
than management’s
growth expectations
•Product in maturation or
decline phase
•Product Launch Case!!
•Product -Market growth rate
lower than management’s
growth expectations
•Management’s objective
•High concentration in a
single product/ category
•Diversification strategy case!!

91. ICON, IIM Bangalore 91
Growth Strategy Framework (Alternate)
Preliminary Questions
•Clarify objective and quantum of
growth, timeline
•Business Model –Where does
the firm lie in the value chain?
What are its revenue streams
and distribution channels?
•Understand customer segments
•What is the product mix? Any
differentiating/ new features in
products?
•What is the competitive
landscape?
Growth
Core Activities
(Profit metric)
Product Mix#Units sold
Market Size
Inorganic
M&A
Organic
Market Share
Organic
-Improvise Customer
journey
-Increased branding
-Omnichannel, O2O
-Improve Customer
Retention
Inorganic
-Acquire
emerging
competitors,
substitutes
-Develop E2E
skills
Profit/ Unit
Revenue/Unit
-Can price be
increased? Inelastic
demand, monopoly
-Bundling
-Price Discrimination
-Cross Selling
-Upselling
Cost/ Unit
-Value Chain Analysis,
Process Innovation
-Strategic vertical
integration
Non-Core
Activities
-Lease space,
capacity for
advertising, rentals
-Value Added
Services

92. 92
iPhone ManufacturerGrowth Strategy | Easy | BCG (Partner)
ICON, IIM Bangalore
YourclientisaniPhonemanufacturerbasedoutofGermany.Postcovidtheyarefacinga
hugespikeindemandandarenotabletomeetitwiththecurrentcapacity.Whatshould
theydotoensurethatdemandismetassoonaspossible?
Thanks,understood.Ihaveafewpreliminaryquestionstounderstandmoreaboutthe
companyandthesituationathand.Wheredoestheclientlieinthevaluechain?Also,does
itcatertothedemandofonlyGermanyorsomeothercountriestoo?
Okay.TheclientonlymanufacturestheiPhonesandcaterstothedemandglobally.
Thankyou.CanIknowaboutthenumberofplantsithasandthecapacityutilizationof
each?Iamaskingthistoknowifwecanincreaseourcurrentcapacityorifthereisaneedto
setupnewplants.
Goodquestion.Soweareconfusedamong3options.1.SetupunitsinGermany,2.
ManufactureinIndia,3.ManufactureinTaiwan.Pleaseevaluatethese3optionsforme.
Forevaluatingtheseoptionsweshouldlookatthreethings.1.Regulatoryrestrictions,in
whichIwouldlookattheFDInorms,laborlaws,exportrulesandalsotheeconomicstability
andmutualtiesbetweenthecountries.2.Financialfeasibility,inwhichIwilllookatthe
variouscoststhatwe’llincur-Fixedcostsandvariablecostsandthecorrespondingprofits.3.
OperationalfeasibilityinwhichIwillevaluatetheeaseofoperationalsetupineachoption.
Okay,Whydon’tyourankthethreeoptionsbasedjustontherestrictions?
Sure.LookingfirstattheTaiwanoption,itshouldberankedlastbasedontheeconomic
instabilityandhighbarriersofentryandsetup.ForIndia,we’lllookattheFDIapproval,
Exportlaws,laborlaws,themutualtiesbetweenthecountriesandifallthatisinfavorthen
Indiawouldbeagoodoptiontoconsider.ButIndiastillranksafterGermanybecauseallthis
willtakeconsiderableamountoftime.
SincewealreadyhaveanexistinginfrastructureinGermany,wecanleveragethatand
expandinGermanyitself.
Okay.Howwouldyougoaboutevaluatingtheoperationalfeasibility?
Iwillstartbylookingattheentirevaluechain.Procurementofrawmaterial->Inbound
Logistics->Manufacturing->OutboundLogistics.IncaseofsettingupplantsinGermany,we
alreadyhaveanetworkofsuppliersandlogistics,hencewewillfocusonfindingland,
settingupplantsandhiringlabor.Inothercases,weneedtostartbyfindingreliable
suppliers,focusingonhighquality,lowcost,mutualrelationship,contractterms.Thenwe
willlookattheplants,labor,capacityutilization.Thiswillbefollowedbyoutboundlogistics,
wherewewilllookatexportdutiesandensurethesafetyoftheproducts.
Sowhatwouldbeyourfinalbasisofdecision?
First,wewilleliminatetheoptionswhichhavehighregulatoryrestrictions-Taiwan.Between
theothertwooptions,wewillseewhichonecostsuslesstoproduceandalsoprovideus
anopportunitytoexpand,forexampleifwemanufactureinIndia,wemightbeableto
focusmoreoncapturingmoremarketshare.Allthisclubbedwiththeeaseofsettingupthe
operationswillleadtoourfinaldecision.
Verywell.Thankyou.

93. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
93
•iPhone manufacturer based out of Germany seeing sudden spike in demand
•Evaluate 3 options of manufacturing in : 1. Germany 2. Taiwan 3. India
•Only 1 product : iPhones
•Implementation must be as
soon as possible
•Caters to the demand globally
•Focus on manufacturing only
iPhone ManufacturerGrowth Strategy | Easy | BCG (Partner)
•Take your time to think through each step, the partner wants you to think and then speak
•While giving the final solution give a quick recap of everything you have covered in the case
ICON, IIM Bangalore
Regulatory RestrictionsFinancial FeasibilityOperational Feasibility
•FDI approval
•Export/import laws
•Labor laws
•Economic stability
•Mutual ties between
the countries
•Fixed costs: Land,
plants, machinery,
labor wages, logistics,
storage
•Variable costs: Raw
material procurement,
safety and quality
check, transportation
losses, export duties
•Reliable suppliers ensuring
raw material of high
quality, low cost, close
vicinity
•Production: Cheaper land,
plants, hiring labor,
capacity utilization,
economies of scale
•Safety in the mode of
transportation, minimum
transit losses

94. 94
Increasing WhatsApp Pay ShareGrowth Strategy | Easy | BCG (Partner)
ICON, IIM Bangalore
YourclientWhatsApphasapproachedyoutoincreasetheMarketShareofWhatsAppPay
from0.2%to5%in2yrs.
Thankyouforthecase.Beforewedeepdiveintothespecifics,Ihavesomepreliminary
questionstobetterunderstandaboutthefirm.Startingwiththeindustry,mayIknowthe
currentcompetitorsandtheirmarketshares?Comingtoourclient,canIassumethatit
WhatsApppayiscurrentlyprovidingpeertopeertransactionservicesonly?Alsoifthereare
anybudgetorresourceconstraintswithourclient?
YoucanassumeGooglePayhas31%,Paytmwith45%,PhonePaywithapprox.10%market
share.Yes,assumethecurrentservicesprovidedbyWhatsApp.andtherearenobudget
restrictionsfromclientside.
Thankyoufortheinformation,itwasquitehelpful.CanItake30sectodraftmyapproach?
Yespleasetakeyourtime.
Sogrowthinmarketsharecanbeachievedthrough2wayseitherthroughacquisitionslike
acquiringsmallplayersandintegratingtheircustomers,technologyandofferingsorthrough
increasingourownusage.Wouldyoulikemetofocusoneitheroneofthetwo?
Youcanstartwithsuggestingwaysofincreasingappsusage
Basedonmyunderstanding,wecaneitherincreasetherevenuepercustomerorincrease
thecustomerbaseitself.Underincreasingrevenuewecanlookforaddingusagechargesor
transactioncost(ServiceCharge)butsincethereisalreadyanintensecompetitionwe
cannotgoaheadwiththisbutwecanfindwaystoincreasetransactionspercustomer.
WiththelimitedofferingsthatWhatsApppayprovideshowdoyouplantoincrease
transactionpercustomer?
AssumingthatWhatsApppayonlyprovidestransactionswecanproviderewardssystem
somethinglikegooglebutwewouldbecreditingasmallamountbackinthebankaccount
ratherthananycouponsetc.Additionally,wecanalsoincentivizethecustomersby
dispersingbonusrewardsforhighfrequencycustomers.
Gotit.Canyounowsuggestourclienttoincreaseitscustomerbasenow?
OneofthedistinctadvantageinthefavorofourclientisitsWhatsAppuserbase.With
approx.2billionusers,ourclientcanpushsellitspayfeaturetoitsnewusers.Thiscanbe
donebyquickonboardingstatusnudgeandsomejoiningrewards.
AnotheroptioncanbeofaWhatsApppayapp.Youmentionedtheclienthasnobudget
restrictionssowecandevelopastandaloneappwhichwillenableourclienttoinclude
additionalfeatureslikebookings,billpaymentetc.Optionsofmultipleofferingscouldreally
increasethecurrentcustomerbaseexponentially.
Supposethatyouareaskedtoproviderecommendationonanyoftheabove
recommendationswhichonewouldyouprioritize?Rememberthetargetisachieve5%by
endof2024
Gotit.SooneoftheUSPofWhatsApppayititsseamlessintegrationwithWhatsApp.I
wouldsuggestifwecanaddinabitmorefeaturesinthesameplatformandincentivize
userstodrivetopaymentsthroughWhatsApp.Thatshouldhelpusachievetherequired
target.Anotherbenefitwiththiswouldbethatcostorinvestmentrequiredascomparedto
otheroptionwouldalsobesubstantiallyless
Greatwecanclosethecasenow.

95. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
95
•Your client, WhatsApp wants to increase the market share of WhatsApp Pay
•Need to devise a growth strategy to increase its share from 0.2% to 5% in 2 yrs.
•Current Market Share for our
client is 0.2% in 2yrs.
•Current competitors Google
Pay has 31%, Paytm with 45%,
Phone Pay has 10%
•There aren’t any budget
constraints from client side
Increasing WhatsApp Pay ShareGrowth | Easy | BCG (Partner)
•The interviewer was keen on understanding the various splits I made especially the one with Acquisitions
•Leveraging WhatsApp for marketing to move the current user base to WhatsApp pay
•The long term solution of a standalone App could be more explored upon
ICON, IIM Bangalore
Growth
Organic
Growth
Revenue
Price
Transaction
Cost
Service
Charge
#Transactions per
Customer
Bundling
Rewarding
High Freq.
Transactions
Cashbacks
#Customers
Existing App
Marketing via
WhatsApp
Nudging
Keywords
New App
WhatsApp
Pay App
Adding
Features
Inorganic
Growth
Acquiring Small
Players
Mergers

96. 96
Express Logistics CompanyGrowth Strategy | Moderate | Kearney (Partner)
ICON, IIM Bangalore
Yourclientisasurfaceexpresslogisticscompany,anditislookingforrecommendationsto
increasetheirmarketshare.
Thankyouforthecasestatement,canyouhelpmeunderstandwhatwemeanbyan
“ExpressLogistics”company?DoesourclientrunaB2BorB2Cmodel?
Sure.Anexpresslogisticsserviceproviderallowssmallerconsignmentsizesof30-150kg
whereastraditionalcargocarrieswouldrequirerentinganentirecarrier(6/7T).Express
servicesthereforearebettersuitedtoB2CbutcanalsoindulgesinB2Bliketraditional
services.
Thankyou!Intheinterestofourdiscussion,Iwouldliketoasksomepreliminaryquestions
aroundtheclient’soperations.
Yes,goahead.
Thankyou!Dowehaveinformationregarding,themarketpositionofourclient?Thelargest
revenuecontributingsectorstoourclient’sbusiness?Theoperatingspanoftheclient?
Ourclientisnotamarketleaderinthespace.Ithasbeenseenformarketleadersthat50%
ofbusinessisdrivenbySMEswhileinoutclient’scaseitisonly30%.Suchbusinessesare
runusingahubandspokemodelandtheclient'sservicesareavailableacrossthecountry.
Okay.EvidentlytheclienthassomegroundtocoverwithSMEbusinesses.Doweknowif
theportfolioofservicesthattheclientprovidesmatchesthecompetitors?Doesitwantto
improveservicesoffered?Howistheirpricingagainstcompetitionspropositions?
Detailedresearchshowthattheclient’sservicefulfillmentfeedbackisbetterthan
competition,buttheservicesarepricedconsistentwithcompetitors.
Interesting,evenwithbetterservicefeedbackatthesamepricestheclientisgainingmarket
share.Fortheinterestoffurtherdiscussions,Iwouldliketopursuethepossibilitiesof
marketdevelopmentormarketpenetrationfortheclientastheirproductisalreadyupto
themarknow.Isthatafairapproach?
Yes.Theclientisinclinedtowardsamarketpenetrationapproach.
Okay,toensureasuccessfulmarketpenetrationsIwouldliketolookatthedemandside
andthesupplysideoftheclient’soperations.Thedemandsidefortheclientwouldbe#of
customersservedinthecurrentgeographyand#ofrepeatorders.Thesupplysidewould
comprise,presenceofinfrastructure,i.e.,networkofhubsandspokes,deliverytrucks
(carriers),lastmiledeliveryagents,etc.tofulfilldemand.Isthatafairapproach?
Yes.Wemaywanttodelvedeeperintothesupplyside.
Sure,dowehavedatapointsonthenumberofhubsandspokes/customertouchpoints
operatedbyusversusourcompetitors?Doweknowiftheclient’spanIndiapresenceis
skewedtoaparticulargeography?
Goodquestions.Wehave28hubsand300branchesacrossthenation,whereasour
competitorshave40+hubsand500+branches.Itisalsoobservedthattheclient’spresense
isgreaterinthewesternpartofIndia.
Ibelievethisistherootcauseofourclient’ssharenotincreasingsufficientlyamongthe
competition.Givenadequateinvestments,theclientshouldplantoincreasecustomer
touch-pointsintheEasternpartofthecountrythroughfranchisecontracts.Theyshould
alsohirecontractualridersforlastmiledelivery.Theclient’spresenceshouldmeetthatof
thecompetitors.Theyshouldalsoconveytheirbetterthancompetitionprice-service
propositiontocustomersandbusinesses.Thesemeasuresshouldhelpthemcapturemore
businessfromSMEsandmeetbusinessmixbenchmarkssetbycurrentmarketleaders.
Thatsoundsgood.Thiswillbeall.Thankyou.
Thankyouforyoutime.

97. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
97
•The client is a surface express logistics company
•They are pursuing market leader status
•Recommend a growth strategy for the client
•Client fulfils requests pan-
India
•30% of business is contributed
by SMEs compared to 50% of
market leader’s business
•Product mix adequate
•Client leads in service-price
proposition
•Footprint is biased towards
west India
•# of hubs and spoke lower
than competition
Express Logistics CompanyGrowth Strategy | Moderate | Kearney (Partner)
•Pan-India presence does not ensure equally able and efficient pan-India service, the client’s operations were concentrated in the West
•Better product proposition will not convert into market shares if organisation does not have adequate infrastructure across serviceable geography
ICON, IIM Bangalore
Growth
Strategy
Existing
Market
Existing
Product Mix
New Product
Mix
New Market
Existing
Product Mix
New Product
Mix
Market Penetration
(Existing Market + Existing Product Mix)
Demand
# Customers
B2B
B2C
Frequency of order
Supply
Infrastructure
Physical touch-
points (Hub and
Spoke Model)
Last mile delivery

98. 98
Fantasy Sports Company Growth Strategy | Moderate | Bain (Partner)
ICON, IIM Bangalore
HaveyouheardofFantasySportscompanies?ImaginethatyourclientisaPE-VCfirmand
theywanttounderstandthegrowthpotentialofDream11,afantasysportscompany.
Okay.So,beforestructuringtheproblemandanalysingthecase,Ihaveacoupleofclarifying
questions.CanIgoaheadandaskthosequestions?
Sure,goahead.
IwouldwanttounderstandthebusinessmodelofatypicalFantasysportscompanyto
beginwith.Also,whichcountriesisDream11presentinandwhat%oftheFantasysports
marketdoesitcurrentlyhaveaccessto?
Thereare2modelshere:1.Free:Nowinningpriceorentryfeeisrequiredtoparticipatein
fantasysportscontests.
2.Premium:Abounty-basedmodelwhereanentryfeeistobepaidandthewinnerortop
rankerstakealucrativeamountbasedontheirrankinthefantasyleague
Currently,Dream11ispresentonlyinIndiaand80%ofit’sbusinessisfromcricketing
fantasyleagues.Youcanassumeitisthemarketleaderwith60%share.
Thanksalotfortheinformation.GoingforwardIwouldliketobreakthecaseinto3parts:
(1)RevenuesizingofDream11.(2)Operationalbarriers/risks(3)Growthopportunities
Soundsgood.Let’sbeginwithmarketsizingofthefirmandthenmoveontotheothers
GivenIndia’spopulationin1.3Bn,anInternetpenetrationof50%andassumingtheage
groupof18-40tobearound30%ofthepopulation.Wehavearound200Mneligible
players.Iwouldnextlookattheintentamongmaleandfemaleparticipantsseparately.
Ok,nowhowwouldyouestimatetheconversionfromeligibilitytoactualplayersonDream
11?
Incomesegmentationseemslikeagoodwaytobeginwith,butamorereliablesubstituteor
estimatemightbesubscribersofHotstarwhoactuallyinvestintostreamingsportsonline.
ThatiswhatIwaslookingfor.Let’sgetbacktothecalculationnow.
Goingbacktoourcalculationwehadaround200Mneligibleplayers.Iassumearound10%
ofintentamongmalesand2%ofintentamongfemales.Thatwouldtranslatetoaround12
MnplayersofFantasysports(Male:Femaleratioassumedwas1:1here).Ifthisseems
alright,Iwillrequirethepercentageofactiveusers*averagespendpersession*avgno.of
sessionsperactiveuser.Further,Iwouldcheckthegrowthpotentialofthemarket
Fairenough,themetricsseemtobeexhaustivebutwhydon’tyoumakereasonable
estimatesfortheabovemetrics.ThegrowthrateseemstobesteadyandassumeCAGRof
over15%forthisindustry.TheaveragespendpereventisaroundRs.100
Iamawarethatwithe-commercefirmstheconversionseemstobeabout20-25%.Fora
fantasysportscompany,itwouldbearound50%.Thenumberofpaideventsperyearwould
be0forfreeusers.Fortheremaining50%itwouldbe10peryearforamateurusers(40%)
and50-100peryearforfrequentplayers(10%).ThenumbersIhaveusedasreferenceare
thesportingeventshappeningannuallyinIndia(domestic+internationalmatches)
Seemsfair,intheinterestoftimelet’snowskiptotheoperationalrisks.
1.Legal–betting/gambling-relatedregulationscoulddismantletheindustry.Currently,
fantasysportsareseendifferentlyfrombetting.
2.Social-Postcovid,thetendencytoengageinonlinegamingcouldbelowerandsocial
concernsaroundbettingcanbeaconcerninsomestates
3.Threatofnewentrantsandsubstitutesasthebusinessseemstothriveonthebasisof
havingahugeusercohorttosubsidizethewinners
Excellent,nowsaythattheindustryisinfactawinnertakesallindustryandasyou
mentionedhasalowentrybarrier.HowcanDream11ensuresustainedcompetitive
advantageandrevenue?
IncreasingeithertheusercountorARPU(Avg.revenueperuser).Forusercount–increasing
thenumberofsportsandinternationalexpansioncanbeexplored.Tie-upswithOTT
streamingcanalsohelpnetinnewusers.ForARPU,advertisingrevenue,bundlingofevents
andaladderedincentiveschemeforuserstocontinueplayingontheplatform.
Welldone.Wecanclosethecasenow.Thanks.

99. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
99
•Analyzing the market attractiveness of an Indian Fantasy sports company and suggesting ways to increase revenue. The analysisisto be
done from the point of view of a PE-VC firm that is the client
•Fortheinterview,thebounty-
basedmodelisofconcern.
Playerspoolintheirmoney
andthetoprankerswinan
amountfromthatbounty
•80%ofbusinesscomesfrom
televisedcricketmatches
duringwhichDream11hosts
events
•TheCAGRoftheindustryis
15%.Industryisattractive
•ARPUpereventRs.100
Fantasy Sports Company Growth Strategy | Moderate | Bain (Partner)
•The candidate took sufficient time to understand the business model of a fantasy sports company
•The case was conversational but at the same time the candidate took buy-in on assumptions at each stage and clearly stated the framework he was
following
ICON, IIM Bangalore
Market
Attractiveness
Market Size
#Users * ARPUGrowth (CAGR)
Barriers/ Risk
Porter’s/ PESTEL

100. 100
Pharmaceutical CompanyGrowth Strategy | Moderate| Accenture (Buddy)
ICON, IIM Bangalore
YourclientisaPharmaceuticalCompany.Theyarefacingstagnantgrowthsincepast6
months.Theyneedyourhelpinimprovingthegrowth.
Iwouldliketofirstknow,whetheritisacompanyspecificstagnation.Whatproductsdowe
manufacture?Also,needsomedetailsaboutthevaluechainandgeographiesinwhichwe
operate.Whatistheobjectiveinimprovingthegrowth?
ThecompanymanufacturesMedicalDevicesandOTCdrugs.Othercompaniesaredoing
fine.CompanyoperatesinRussiaandIndia.ItsR&DisinRussiaandrestofthevaluechain
isseparateinboththecountries.Themainobjectiveistoimprovetherevenues.
CanIgetsomedetailsonthecompetitivelandscape,USP,andmajorcustomersegments?
Itisanoligopolymarketwithfewmajorplayers.Weareoneofthem.OurUSPinIndiaisthe
lowpricethatweofferwhereasinRussiaweprovideadvanceddevices.WeareaB2B
businesswith95%ofthecustomersfromUrban.Theproductsareforeveryone.
IwouldliketofirstfocusonIndiaandtheniftimepermits,wecanlookintoRussia.InIndia,
wecaneitherfocusonexistingproductsortrytointroducenewproducts.Like,rightnow
wearejusthavingcommondrugs,wecanplantomanufactureveryspecificdrugsforother
illnesses.Ifweconsideronlytheexistingproducts,thenwecanlookintoeithermarket
penetrationormarketdiversificationbygoingtoothermarkets.Dowehaveany
informationwhycouldn’tentertheruralmarket?
Ilikedthewayyouareapproachingtheproblem.Wecurrentlyonlyhave5%customers
fromruralmarket.Themajorreasonisthatmosttheruraldrugsanddevicesarethrough
governmentcontractsforwhichweneedpoliticalconnections.Asofnow,Iwouldlikeyou
tofocusonthemarketpenetration.
Revenue=#hospitals/medicalshops/labs*revenue/customer.Toincreaserevenuefrom
eachofthem,wecaneitheruseupsellingorcrosssellingbysellinghighendproductsor
sellingothersimilarproducts.Whichpartoftheequationdoyouwantmetofocusupon?
Youcanfocusonthenumberofmedicalshopsandseewhatcanbedone.
Wouldlookatthisfromtwosides,oneisacquiringnewcustomersthroughorganicand
inorganicways.Theotheristolookatoldcustomersandresolveiftheyarefacingany
problem.Inorganicways,IwouldconsiderAffordability,Availability,Accessibility,
Awareness.Wearealreadyaffordable.Tomakeproductsmoreavailable,wecansell
throughonlinewebsites.WecanhiremoreMarketRepstoimproveawareness.Ininorganic
ways,wecanconsiderjointventureoracquisitionofcompanieswhicharedoingwellin
ruralmarkets.Dowehaveanyinformationiftheexistingcustomershaveanyproblem?
Reallylikedallthedifferentaspectsyouarelookingintoforimprovingthegrowth.We
observedthatthenumberofexistingcustomersisdroppingandwedon’tknowthecause
exactly.Canyoupleasethinkwhywearefacingdropinexistingcustomers?
Iwouldliketodividetheissueintosupplysideandcustomerside.Doweknowifthereis
anyissuewithsupplyingtheproductsrequiredbyexistingcustomers?
No,thereisnoissuewithsupplyside.Youcanfocusonthedemandside.
Onthedemandside,wecanlookintopre-service,duringservice,postservice.Inthepre-
service,Iwoulddivideintoneed,awareness,affordability,accessibilityandavailability.
Duringservice,Iwoulddivideintocostandbenefitsassociated.Postservice,Iwilllookat
returns.Doyouwantmetofocusonanyonepart?
Youcanlookatthepre-serviceandparticularlytheawarenesspart.
Wecanlookatbothinternalandexternalfactors.Internalfactorsincludeanychangein
numberofmarketrepresentatives(MRs),changeinincentivestructurestomarket
representatives,hiringandfiringofMR.Externalfactorsincludecompetitorsandtheir
awarenessactivities.Didwerecentlyseeanychangesinanyparticularmentionedheaders?
Yes,someofourexistingMarketRepresentativeshaveleftandwehadtohirenewMarket
Representatives.Weobservedthatthesenewhireswereunabletomaintainthe
relationshipwithexistingcustomers.Duetowhich,therewasadropin#existingcustomers.
Itwasniceinteractingwithyou.Reallylikedyourthoughtprocessandstructuredapproach.

101. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
101
•Pharmaceutical company is facing stagnant growth since past 6 months.
•Objective is to increase growth by focusing on revenues.
•Operates in Russia and India
•Oligopoly market
•Manufactures common OTC
drugs and medical devices.
•B2B company with 95% of the
customers from urban cities.
•In India, USP is the low prices.
Pharmaceutical CompanyGrowth Strategy | Moderate | Accenture (Buddy)
•At every step, MECE is must. Try to divide into various headers and mention them to take buy-in from the interviewer.
•Ask the interviewer if you should focus on particular headers and follow in that path.
•Ask all the required questions to understand the context fully which include Company, Competitors, Customers and Products.
ICON, IIM Bangalore
Growth
New ProductsExisting Products
# Customers
New Customers
OrganicInorganic
Existing
Customers
Demand Side
Pre-ServiceDuring ServicePost-Service
Supply
Side
Revenue/
Customer

102. 102
E-commerce ClientGrowth | Moderate | Strategy& (Director)
ICON, IIM Bangalore
YourclientisaUSbasedcompanywhohas2businessverticalsunderthem,withoneof
thembeinge-commerce.Theheadofthee-commerceverticalislookingatgrowingthe
businessandincreasingprofitabilityandhasapproachedyouforthesame.
Toreiteratetheproblemstatement,ourclientistheheadofe-commerceverticalofaUS
basedcompanyandwantstofocusbothongrowthandincreasingprofitability.Ifmy
understandingiscorrect,canIpleaseproceedwithafewpreliminaryquestionsto
understandourclient.Whatkindofproductsdoourclientssellandtowhichgeographies
dotheycater?Also,whatistheircurrentmarketshare?
Ourclienthasaseasonalbusinessandsellsmostlybackyardproductslikelawnmoverand
barbequeproducts.TheycurrentlycatertotheentireUSmarketandhaverecently
expandedtoEMEIAaswell.TheirmarketshareinEMEIAislessthan1%.
Whatpartofthevaluechaindoesourclientoperateinandhowdoestheirdistribution
channellooklike?Doesourclientsellonlyonlineorhavebrickandmortarstoresaswell?
Ourclientmajorlydealswithretailing,thatistheybuy,storeandselltheproducts.They
haveapurelyonlinemodeofbusinessanddonotownanybrickandmortarstores.
Doesourclienthaveanytargetgrowthnumbersintheirmind?Byhowmuchdotheywant
toincreasetheirprofitability?
Thegrowthrateofourclientcurrentlyis10%andthey’relookingtoincreaseitto30%.Our
marginsarealsocurrently10%andwe’relookingtoincreaseitto15%.
Whatdoesthecompetitivelandscapeofourclientlooklike?
70%ofthemarketiscateredbymomandpopstores.Oftheremaining30%,amajorchunk
isservedbybigboxretailerslikeWalmartwhohavebothbrick&mortalaswellase-
commercechannels.YoucanimagineourclienttobeawatereddownversionofAmazonin
termsofscaleandsize.
Whatcustomersegmentsdoesourclientcaterto?
Ourclientscustomersareusuallypeoplelivinginduplexhouses.Sinceourclientsells
backyardproducts,theircustomersgenerallytendtohavebiggerhouseswithbackyards.
Thanks,Ihavegotallmyquestionsclarified.ShallIproceedwithlookingtoincrease
profitabilityfirstandthenevaluatethegrowthstrategy?
Letusfirstlookintothegrowthstrategyandthengoaheadwithprofitability.
Sure.Sowecanlookatfouraspectsinthegrowthstrategy.Onewaywouldbetolookinto
productdiversification.Sincewedealwithseasonalproducts,diversifyingourproductmix
wouldhelpusgeneratemoresalesallroundtheyear.Alternatively,wecanalsolookinto
productdevelopmentwherewecanworkonbuildingdifferentvarietiesoftheproductswe
havebasedoncustomerpreferenceandtrytotaptheuntappedmarket.Anotherway
wouldbetoexpandtoothergeographieslikewedidwithEMEIA.Anotheralternative
wouldbetoincreasethepenetrationoftheproductsinthemarket.Thiscanbedoneby
targetingothercustomersegmentsthantheoneswecatertocurrently.
Okaygreat,youhavecoveredalltheaspectscomprehensively.Letslookintoprofitability
now.
Sure,profitscanbeincreasedbyincreaseinrevenueordecreaseincosts.Wouldyoulike
metolookintoanyoftheseparametersordivedeepintoboth?
Letusfocusoncostsfirstandthenmoveontorevenue.Canyoulistallthecoststhatour
clientwouldincur?
Themajorcostsourclientwouldincurwillbeprocurementofrawmaterial,inboundand
outboundlogisticscostincludinglastmiledelivery,warehousingcosts,aftersalesservices.
Youhavecoveredallthecosts.Letuslookintoincreasingrevenuenow.
Revenuecanbeincreasedbyincreasingourcustomerbase,increasingthepriceofthe
productsorbyincreasingthefrequencyofpurchasepercustomer.Butsincetheseare
seasonalbackyardgoodswithwarranty,householdswouldnottendtobuythemoften.
Hence,increasingthefrequencyofpurchasedoesnotseemviable.

103. 103
E-commerce ClientGrowth Strategy | Moderate | Strategy& (Director)
ICON, IIM Bangalore
Soundsgood,youweretalkingaboutincreasingtheprice.Howwouldyougoaboutpricing
theproduct.
Wecansellourproductsbasedonthecustomervaluethatwouldbegeneratedoutofit.
Sinceourcustomersaretypicallythehigherincomesegment,theydonottendtobeas
pricesensitive.Sincethemarketisfragmentedandourclientdoesnothaveahugemarket
sharewewouldneedtobenchmarkagainstthecompetitorstosomeextent.Butthepricing
canbedonebasedonthecustomervalue.
Great,thatwouldbeall.Itwasnicetalkingtoyou.
Thankyou,Sir.Itwasnicemeetingyouaswell.

104. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
104
•US based e-commerce company
•Wants to evaluate growth options and increase profitability
•Seasonal backyard products
like lawn mover and barbeque
grills
•Presence in US and recently
expanded to EMEIA
•Target growth 30% and target
profit margin 15%
•High income population with
houses big enough to have a
backyard
•70% of market captured by
mom & pop stores
E-commerce ClientGrowth Strategy | Moderate| Strategy& (Director)
•The interviewer wanted to test if the candidate will critically analyse all available options. List down all alternatives andreason out why one should
prefer or not prefer that alternative.
•The interviewer also did not want to arrive at the root case of increasing profitability. He just wanted to check if the candidate can list down all drivers.
ICON, IIM Bangalore
Profit
Costs
Procurement of raw
materials
Inbound &
Outbound logistics
Warehousing
After sales service
Revenue
# of
customersPrice
Customer Value
Benchmarking
Frequency
of purchase
Growth
Market
Geographical
Expansion
Market
Development
Product
Product
Diversification
Product
Development

105. 105
French Newspaper DistributorGrowth Strategy | Moderate | Strategy& (Manager)
ICON, IIM Bangalore
YourclientisanewspaperdistributorcompanyinFrance.Theclient’sbusinessisfacing
stagnation.Theyhaveaskedyoutoevaluateanddiagnosetheircurrentsituationand
providerecommendations.
Interestingproblem.Inordertounderstandourclientandtheirbusinessbetter,Iwouldlike
toaskcertainpreliminaryquestions.
Sure,goahead.
Iwouldliketofirstunderstandtheproductmixaswhatkindofnewspapersdoesourclient
dealwithaswellasthekeycustomersourclientcaters.Asadistributor,Ibelieveourclient
caneitherdirectlycatertoendcustomers,ortheymaycatertointermediatorylikeshopsor
both.
Goodquestion.TheclientisoneofthelargestdistributorsofafamousNationalFrench
newspaper.Allthesalesforourclientarethroughlocalstallsandshops.
Iwouldliketounderstandthereasonbehindthestagnation.Inordertodothat,Iwouldlike
toknowthecurrentcompetitivelandscapeinFranceandifourcompetitorsarealsofacing
similarstagnationingrowth.
Whilethereexistscompetitionfromvariousdistributors,ourclientisthemarketleader
whenitcomestodistributingtheNationalFrenchNewspapertolocalstalls.Similar
stagnationisbeingfacedbyotherplayersaswell.Whatdoyouthinkcouldbethereasons
behindthisstagnation?
Therecanbereasonsinternalaswellasexternaltoourclient.Sinceourclientoperatesin
thedistributionpartoftheNewspaperindustryvaluechain,Internalfactorssuchas1.
choiceofchannels,2.Supplier&BuyerContracts3.Planning&Optimization4.Training&
Commitmentofworkforcesetc.Butsinceotherplayersarealsofacingsimilarstagnation,I
assumedthatExternalfactorswouldbethereasonbehindthestagnationlike1.Marketsize
stagnation,2.Changeincustomerpreferences,3.Regulations,4.Demographicfactorsand
5.Technologicalfactors.
Ifeelthatwiththeshifttowardsdigitaltechnology,morecustomersareconsuming
informationthroughdigitalchannelsandthustheirpreferencesarechanging.Further,this
couldhaveledtoanoverallstagnationofnewspapersmarket.
Thereasonsprovidedbyyouarequitecomprehensive.Infact,asyourightlymentioned,
therearemultipleexternalfactorsareleadingtothestagnation,theforemostbeingthe
shiftinconsumerpreferencetowardsdigitaloverphysicalnewspapers.Whatallfactors,no
needtoprovidenumbers,wouldyouconsidertoprojectthefuturedeclineinthemarket
sizeofnewspapersinFrance?
Inordertoprojectthedeclineinfuture,Iwouldfirststartbyfindoutthecurrentmarket
sizeofnewspapersinFrance.Toestimatethecurrentmarketsize,Iwouldstartwiththe
populationandhouseholdsofFrance,literacyrate,physicalnewspaperpreferencesand
consumptionpatterns.OnceIhavethecurrentmarketsize,Iwouldprojectitinfuture
basedontheannualpercentageshiftinconsumersformphysicaltodigital.Further,Iwould
alsotakeintoaccountthechangingdemographicsandthewillingnesstoshiftformphysical
todigital.
Good.Asurveydonebyourclientindicatesthattheannualshiftincustomersformphysical
newspaperstodigitalmediumsisexpectedtoincreaseYoYduetoavailabilityofbetter
digitalsubstitutes.Whatshort-termandlong-termstrategywouldyourecommendtothe
clienttoremainrelevantandprofitableintheindustry?
Intheshortterm,theclientshouldfocusontheirexistingnewspaperdistributionbusiness
tosustaintheircurrentrevenues.Atthesametime,consideringtheprojectedfuture
declineofthenewspaperindustry,theyneedtodiversitytheirscopeinthelongterm.
Alright.Whatstepscantheclienttaketogrowthebusinessintheshortterm?
Theclientcanexplorenewcustomers.Currentlytheyareonlycateringtolocalstalls.They
cantargetcorporatecustomerslikecafes,airportsetc.assuchlocationsalsorequiredaily
newspapers.Further,theclientcandiversitytheirproductportfoliobyleveragingtheir
existingdistributionnetwork.InadditiontotheFrenchnationalnewspapers,theycanstart
distributionofpopularlocalandinternationalnewspapers.Andlastly,theclientcan

106. 106
French Newspaper DistributorGrowth Strategy | Moderate | Strategy& (Manager)
ICON, IIM Bangalore
ventureintonewnearbygeographiestoincreasetheircustomerbase.Thesestepswould
helptheclienttosustaintheirsalesintheshortterm.However,moreradicalstepswould
berequired,andtheclientshouldexplorepivotinginordertogrowinthefuture.
Alright.Alltherecommendationsyoumentionedmakecompletesenseifthenewspaper
marketsizewasonagrowingtrend.Asyourightlymentioned,thesestepswouldnotadd
muchvalueinthelongterm.Whatlongtermrecommendationswouldyougivetothe
client?
Sincethenewspaperindustryisprojectedtodeclineinthefuture,theclientshouldstart
lookingforopportunitiestodiversifyitsdistributionproducts.Theycanbuildupontheir
alreadyexistingcapabilitiesofdistribution,supplierandcustomerstostartventuringinto
distributionofsimilaritemssuchasmagazines,journals,booksetc.Theycanevenventure
intodistributionofdissimilaritems.Thekeyfocusbeingonleveragingtheiralreadyexisting
capabilitiesasdistributors.
Sure.Thosearesomegoodsuggestions.Onelastthing,howshouldtheclientgoabout
reducingtheircostsfortheircurrentoperations?
Asadistributor,Ibelievethatourclient’smajorcostheadwouldbelogistics.ShouldIfocus
onlogisticsordoyouwantmetoconsiderothercostheadsaswell.
Youcangoaheadwithlogisticscosts.
Sure.Inordertoreducecostoflogistics,ourclientcanimplementrouteoptimizations
techniquesinordertodelivermorematerialwithlessresources.Theycanconsider
differentmodesoftransportationsuchasEVorevenbicyclesforshortlocaldistances.Since
itemslikenewspapersholdnovalueoncethedayisover,accuratepredictionofdemandis
extremelyimportanttopreventexcessinventory.Therefore,theycanimplementaccurate
newsvendorinventorymodelstopurchaseoptimalinventorybasedondemand.
Great.Theclientcansurelyimplementsomeofthesesuggestions.Doyouhaveanyother
recommendationsfortheclient?
Theclientcansetupreverselogisticstobuybackoldmaterialsfromitscustomers.Selling
theoldmaterialtorecyclingagenciesinbulkmayallowourclienttodevelopa
simultaneousrevenuestreamaswellasenablethemtoportraytheimageofasustainable
distributor.
Soundsgood.Wecanclosethecasehere.Thanks.

107. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
107
•Client is a newspaper distributor in France
•The business is facing stagnation in growth
•Diagnose the current situation and recommend solutions
•Understand the key customers
•Industry wide issue
•Figure out the reason for the
stagnation in market
•Provide both short-term and
long-term recommendations
French Newspaper DistributorGrowth Strategy | Moderate | Strategy& (Manager)
•The case required the candidate to analyse the problems from different lenses. No specific framework was used, however, smallportions of different frameworks seem to have helped the candidate
•The preliminary questions could have been more exhaustive in order to understand the client better.
•It is always beneficial to have a hypothesis, in this scenario, since this was an industry wide issue, the candidate himself mentioned that it could be an external issue.
ICON, IIM Bangalore
Market
Stagnation
Internal
Channels
Supplier
Contracts
Buyer
Contracts
Planning and
Optimization
Workforce
External
Customer
Preferences
Demographic
Factors
Regulations
Technological
Factors
Market Size
Population
Literacy
Households
Physical Newspaper
Preference
Strategy
Short Term
Target new
customers
Product Mix
Enter New
Geographies
Reverse Logistics
Long Term
Leverage existing
capabilities
Diversify into
different products
Pivot

108. 108
Ministry of RailwaysGrowth Strategy | Challenging | Strategy& ME (Buddy)
ICON, IIM Bangalore
YourclientistheMinistryofRailways,China.TheyoverseeallrailnetworksinChina,
includinginfrastructure,operationsandregulation.Theyoverseetheworkingof16railway
bureausand22railwaygroupcompanies.Theyareconsideringinvestmentinahigh-speed
railwaylinebetweenBeijingandShanghai.Advicethemiftheprojectisgoornogo.
Seemslikeaninterestingproblem.Couldyoutellmealittlebutaboutthesetwocities?
Whataretheexistingmodesoftransportationbetweenthem?AnyUSPthatthesecities
haveascomparedtoothers?
Sure.BeijingandShanghaiare2ofthelargestcitiesinChinawithdedicatedEconomic
Zones.Currently,thereisaregularrailwaylineaswellasaflightthatoperatesbetween
thesecities.
Okay.Andwhatistheaddedbenefitthatourhigh-speedrailwaylineisgoingtoprovide?
Couldyoualsotellmethepriceofaflightticketandaticketoftheregularrailway?Also,
whatisthepricepointthatwehavedecidedforournewrailwayline?
Theregularrailwaylinecurrentlytakes12hrs,whiletheflighttakes1.5hrs.Thenewhigh-
speedraillineisgoingtotakearound3hrstotravelthedistance.Priceofaticketis$250
fortheregularrailwaylineand$500fortheflight.Regardingpricingforthehigh-speedrail
ticket,whatwouldyourecommendtodo?
Pricingcanbedonein3ways–Competitivepricingbasedonwhatourcompetitors(regular
railway/flight)areoffering,costpluspricingbasedonthemarginthatwewantabovethe
costpriceandvalue-basedpricing,forwhichwewillneedtoassignapricetotheadditional
valueweareprovidingourcustomers.
Whichonewouldyouwanttogowith?
Sincealternatemodesoftransportationalreadyexistonthisroute,Iwouldliketogowith
competitivepricing,withmycompetitionbeingtheflightoperatingbetweenthecities.I
wouldwanttopriceitcloseto$500,becausealthoughtheactualflighttimemaybe1.5hrs,
airportsrequirealotofformalitiesascomparedtorailwaystationswhichwouldincrease
thetimetakenfortheairjourneycloseto3hrstoo.
Makessense.Whatotherfactorswouldyouconsidertodecideonyourfinalanswer?
Iwouldcheckexternalfactorslikemarketattractivenessintermsofcompetition,suppliers
forconstruction&operationofthenewline,regulations,marketsizeandcustomer
behavior.Iwouldalsoconsiderinternalfactors,namelyoperationalfeasibility,financial
feasibilityandstrategicviabilitywithregardstothefirm’scapabilitiesandresources.
Let’stakeeachfactoronebyone.Whatwouldyoucheckinoperationalfeasibility?
IwouldlookatthevaluechainindetailandcheckthedistributionchannelsthatIcan
leverageandifIcanreuseexistingmachinesorexpertiseofexistingstaff.
Whataboutfinancialfeasibility?
Iwouldlookatthefixedandvariablecostsfirst.Fixedcostswouldincludeinfrastructure
relatedcosts,actualtraincost,salariesofnewlyappointedemployeesandfinancesneeded
todeveloponlinebookingplatforms,ifneeded.Variablecostswouldincludefueland
facilitiescost.IwouldalsoanalyzemysourcesofrevenuetoseehowIcanbreakeven.
Letmegiveyousomedataforreachingabreakevenpoint.Fixedcostsare$2.5bn.Variable
costsare$50,000pertrainperday.Assumethatwearegoingwithcompetitivepricingof
$500perticket.Additionally,currentlythereare20flightsoperatingperdaywith150
passengersperflight.
Assuming30%netmarketpenetrationofflightpassengers,therevenuewewouldgenerate
perday=0.3*150*20*$500=$450,000.Variablecostwouldbe$50000*numberoftrains
runningperday.Ifonetrainhasacapacityof150,andweneedtomake20trips(witheach
triptaking~5hrsforthejourney,includingwaitingtime),weneedtomake4tripsanhour.
Hence,weneed4trainstoruneveryday.So,variablecost=$50000*4=$200,000.So,profit
perdayis450,000-200,000=$250,000.Sincefixedcostis$2.5bn,breakevenpointis
250,000/2,500,000,000=10,000days=10,000/360=27years.
Nowgiventhatbreakevenwillhappenin27years,whatwouldbeyourrecommendation?

109. 109
Ministry of RailwaysGrowth Strategy | Challenging | Strategy& ME (Buddy)
ICON, IIM Bangalore
Iwouldstillgoaheadwiththeinvestment,becauseaimofmostgovernments,while
implementingsuchprojects,isnotbreakingeven.Thegoalscanbepolitical(suchas
promisesmadeduringelections),economic(improvingtradeintheEconomicZonesofthe
twocities),Social(employmentgeneration,improvingtheimageofChinainfrontofthe
World)orFinancial(extendingthehigh-speedrailwaysfortransportationofgoods,
improvingcustomerpenetration%),etc.
That’ssoundjudgement.Wecanclosethecase.

110. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
110
•Analyzing feasibility of investing in a high-speed railway line in China
•Railway line to operate between Shanghai and Beijing
•Chinese Railways
•Shanghai and Beijing –
Economic Zones, large cities
•Air travel, regular rail already
present in the route
•Pricing –3 types
•External & Internal
Considerations
•Operational, Financial
feasibility –break even point
Ministry of RailwaysGrowth Strategy | Challenging | Strategy& ME (Buddy)
•Ask USP of introducing new solution/entering new market.
•In the financial analysis, try matching units to reach the breakeven point
ICON, IIM Bangalore
Introducing a new
Product
External/ Industry
Analysis
Porter’s 5
Forces
PESTEL & Other
macro fators
Internal/ Firm
Analysis
Operational
Feasibility
Value Chain
Analysis
Financial
Feasibility
Breakeven
Analysis
Strategic Viability
VRIN (O)

111. IIMB M&A & PE Cases
2022-23
111ICON, IIM Bangalore

112. 112
PE/VC Framework
ICON, IIM Bangalore
Factors to be
evaluated for
the time-
period of
investment
Financial FeasibilitySynergies and Business ModelExit Options and Risks
Financial FactorsAcquired Firm's
FactorsSynergiesBusiness ModelExit OptionsRisks
Market Size
(Guesstimate)
Unique Value
Proposition
Demand-side
Synergies
Company's
EvaluationTotal Exit
P E S T L EGrowth Rate CompetitorsSupply-side
SynergiesOperationsPartial Exit
ProfitabilityCurrent Equity
StructureEfficiency SynergiesFinancialsIPO
Use information from above parameters to calculate Free Cash Flows (FCFs)
to estimate the valuation of the company being acquired
Structure
What structure do we need
to execute the strategy?
Systems
Business system needed to
execute the strategy?
Strategy
What should we do to solve
the business problem?
Structure
What structure do we need
to execute the strategy?
Shared Values
Current Values and culture
of the firm
Style
Analyzing Leadership style
and cultural qualities
Staff
How should we help our
managers in their growth?
Factors needed to analyze a company

113. 113
Healthcare FacilitiesM&A | Moderate | BCG (Manager)
ICON, IIM Bangalore
Yourclientisaleadinghealthcaregroup,theyareacquiringastandalonehealthcarefacility
andwantyourrecommendationontheundertaking.
Thankyouforthecasestatement.Iwouldliketoaskafewpreliminaryquestionstobetter
understandthecurrentstate-of-affairs,usethemtobuildananalysisofthesituationand
thenproceedtotherecommendation.Woulditbecorrecttounderstandahealthcare
facilitytobeahospital/clinic?
Sureandyes,wecanconsiderthehealthcarefacilitiestobehospitalsforthisdiscussions.
DowehavemoreinformationontheproximityofthehospitaltotheClient’shospital?
BoththehospitalsarelocatedinthesameTier1city,within10kmofoneanother.
Theproximityofthetwofacilitieswillinfluencethekeydecision-makingparametersforthis
acquisition.
Good.Whichparameterswillyouusetojudgetheeffectivenessofthisacquisition?
Formergeroracquisitions,wecansplittheparameterintosoftfactorssuchassuchpeople,
culture,brandimage,mission,vision,andhardfactorssuchasduediligencearoundthe
financesofthehospital,capabilities,organizationstructure,operatingpractices,
governmentregulationsandpermits,andotherexpensessuchasmarketing,etc.The
attemptwouldbetoensurethat"thewholeisgreaterthanthesumofitsparts”.Wouldyou
preferIproceedalongtheseline?
Agreed.Duediligenceonthefinanceandfinancialviabilityoftheacquisitionmovehave
beenapproved.Letuschecktheotherotherdimensionsoneatatime.
Iwouldfirstliketoknowhowmanymedicaldepartments/capabilitiesthatthetwo
hospitalshost.Doweknowiftheyaresimilarofdiverse?
Right!EmergencyWard(ER)istheonlydepartmentcommonbetweenthetwohospitals.
Thisagoodstart.Theacquisitionofthetwohospitalswillbringmorespecialtiesunderthe
parentbrand.NowIwouldlookattheculturalsyncbetweenthetwohospitalsandensure
thattheymaintainthesamepatientcentricserviceandgoals.Theintegrationshould
ensurethatthetwohospitalsareperceivedasoneentity.
Okay!Whatelsedoyouwanttolookat?
Asthereisnosignificantoverlapbetweendepartments,intradepartmentintegrationsare
negligible.However,aprotocolhastobedraftedtostandardizetheoperationoftheER
dept.inbothhospitalswithclarityofhierarchyacrosstwohospitals.TheClientshouldalso
refreshtheorganizationalhierarchywiththeacquisitionofthenewhospital,eg.absorbing
experiencedandleadingdoctorsfromthedaughterhospitalintoleadershiproles.
Fair,beyondthecapabilities,cultureandorganisationalstructurewhatotherthingsshould
belookedinto.
Yes.Wewouldhavetoaccountformeasuresandexpensestoamendallregulatorypermits
likefireregulations,elevatoroperations,supplyprocurementtenders,taxdocumentsand
agreementwithhealthcarepayers(publicorprivate)underonename.Clientalsoshould
alignallpublicrelations,marketingcommunicationstobearonidentityforbothhospitals.
Aretheremorebasestocover?
Yes,IcanalsothinkthattheclientwillhavetoupdateitsCustomerRelationsManagement
systems,consolidateallpatientdatabaseacrossthetwohospitalsandstreamlineprocesses
forappointmentbooking,emergencyserviceassistanceanddeliveryacrossthetwo
hospitalsforaseamlesspatientpartyexperience.IsthereanythingIammissing?
No,thatisall.Wewillclosethediscussionhere!
Thankyouforyourtime.

114. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
114
•The client is a leading healthcare provider, take hospital chains like Apollo Hospitals/ Narayana Healthcare group for example
•It is acquiring another healthcare facility in its proximity
•What are some of the bases that they should cover as they make this decision
•The hospitals are in the same
city/town
•They do not have overlapping
capabilities except the ER
(emergency) department
•Cultural and people fit across
work location
•Need to align operations
•Need to maintain same
identity
•Ensure seamless experience
for patients
Healthcare FacilitiesM&A | Moderate | BCG (Manager)
•Ensure the benefits/ hurdles of all stakeholders involved in the business model are being accounted
•In mergers, identify the current attributes (location/ capabilities/ services/ positioning) that contributes to value of post-merger proposition being
greater than than the sum of individuals
ICON, IIM Bangalore
Factors for M&A
decision
SoftFactors
Organization
Culture
Mission &
Vision
People
Hard Factors
Organization
HierarchyCapabilitiesOperation
Protocols
Permits and Regulation
Updates
Patient Relations
PR (Public
Relations)

115. 115
Army Cantonment HotelPE | Moderate| Accenture (Buddy)
YourclientisaPEfirmlookingtoinvestinahotelinIndiaandneedyourhelpinfiguringout
whethertheyshouldgoaheadwithit.
Thankyouforthecase.Beforewedeepdiveintothecase,I’dliketogiveastructuretothe
caseandaskafewpreliminaryquestions.Canyougivemeabriefideaabouttheclient?
Sure,ourclientisoneofthebiggestPEfirmsinIndiaandhasadiverseportfolio.Lately,
theyhavebeeninvestinginalotinrealestatesincetheybelievethereisasignificant
potentialthereforthenext10-20yearsowingtorisingpopulation.
Hastheclientalreadydecidedonthehotelthattheywanttoinvestinoraretheyyetto
decidethesame?
Goodquestion.Theclienthasactuallyalreadydecidedonthehoteltheyareinterestedin
andneedyourhelpinunderstandingiftheinvestmentisworthmaking.
Sure.Inthatcase,Iwouldliketounderstandmoreaboutthehotel.Whereisitsituated?
Whoarethecustomersandtheirpurposeofvisit?Dowehaveanydetailsonthetariff
rates?
ThehotelissituatedinasmalltowninIndiainanarmycantonmentareaandprovidesbasic
amenities.Itbecameoperational3yearsago.Assuch,morethan95%ofthevisitorsare
traineeswhovisitthetowntoattendconferences.Peopledonotspendalotoftimein
roomsanduseitonlyforkeepingtheirluggageandsleeping.Thetraineesreceivesan
allowanceof$80/nightduringthecourseoftheirvisit.Idon’thaveinformationonthetariff
ratesbutyoucanestimatethesameifrequired.
Arethereanyotherhotelsinandaroundtheareathatcouldbepotentialcompetitors?
Notinthesametownbutthereisatownnearbywithamplenumberofhotels.
Thankyoufortheallthedetails!Iwouldliketoevaluatethefinancialattractivenessofthe
asset,followedbygrowthdriversandthenfinallyanalysetherisksandsynergies.Doesthe
approachseemfairtoyou?
Soundsgood.Youcanstartwiththefinancialattractivenessaspect.
Iwouldliketolookatthedifferentrevenueandcoststreamsforthehotelandcomeup
withavaluationofthehotelbasedonexpectedcashflowsandthediscountratesto
accountfortimevalueofmoney.Revenuestreamswillincludeaccommodationcharges,
food,laundryandotherservices.Coststreamwillincludefixedcostslikestaffsalaries,
utilities,maintenanceetc.andvariablecostslikegrocery,housekeepingexpensesetc.Do
wehaveanyideaaroundthedifferentrevenueandcoststreamsaswellasdiscountrate?
Youcanassumeaccommodationchargestobetheonlysourceofrevenue.Costsare
$30/nightforanoccupiedroomand$0foranunoccupiedroom.Discountratesarenot
known.Youcancalculatethepaybackperiodoninvestmenttoevaluatefinancial
attractiveness.Ifpaybackperiodislessthan7years,theclientisgoodtogo.
AccommodationchargescanbecalculatedasNo.ofhotelsroom*OccupancyRate*Tariff
rate*No.ofnightsoperational.Dowehavedataontheseparametersandalsothe
investmentamount?
Thereare400roomsinthehotelwithanaverageoccupancyof75%.Hotelisoperational
throughouttheyear.Theinvestmentamountis$65000/room.Youwillhavetoestimatethe
tariffs.Assumethatalltheroomsaresimilarandasingletariffrateappliestoallcustomers.
Thetariffcanbecalculatedbasedonthreeapproaches:value-basedpricing,costplus
pricingandcompetitionbasedpricing.Sincethehotelprovidesbasicamenitiesandthere
arehotelsinnearbytown,Ifeelpricingismostlikelytobeinfluencedbycompetitionwhile
ensuringthatoperationalcostsarebeingcovered.Doyouthinkthat’sfair?Ifyes,canyou
tellaboutthetariffratesforhotelsinthenearbytown?
Sure,thatmakessense.Therearethreetypesofhotelsinnearbytown–Economywitha
tariffof$50/night,Utilitywithatariffof$75/nightandLuxurywithatariffof$125/night.It
takes$10totraveltoandfromthenearbytowntothecantonmentarea
Afterincludingtravelcosts,thecostofstayinginEconomy,UtilityandLuxuryhotelscomes
outtobe$60,$85and$135pernight.Giventhetraineesreceiveanallowanceof$80per
night,itmakessensetokeepthetariffbetween$60-$80tokeepthepricescompetitiveas
wellasaffordableforthetrainees.Isthatfair?
ICON, IIM Bangalore

116. 116
Army Cantonment HotelPE | Moderate| Accenture (Buddy)
Yes,that’scorrect.Youcanassumethetarifftobe$70/night.
Sure,Iwilltakeaminutetocalculatetheannualprofitandbreakevenperiod.Accordingto
mycalculations,theannualprofitforthehotelwouldbe$4.4Mandthepaybackperiod
wouldbe6years(seeworkingbelow),whichisacceptableaspertheclient’sexpectations.
Thatlooksgood.Canyoutellmesomeoftherisksassociatedwiththeinvestment?
Riskscanbedividedintotwoparts:InternalandExternal.Someoftheinternalrisksinclude
attritionofhumanresources,declineinqualityofserviceanddeterioratinginfrastructure
duetolackofmaintenance.Externalrisksincludeemergenceofcompetinghotels,changes
intrainees’allowancesandshiftinconferencelocation.Allofthesefactorscanpotentially
impactourestimationofcashflowsandpaybackperiod.
Excellent.Sowhat’syourfinalrecommendationtotheclient?
Ifeeltheclientshouldgoaheadwiththeinvestmentsinceitisfinanciallyattractiveto
them.Theinternalrisksshouldnotbeamajorissuesincethehotelisjust3yearsoldand
hence,itshouldbeinagoodshapeforatleastnext4-5years.Asfarasexternalrisksare
concerned,armylocationsareusuallystrategicinnatureandnotchangedfrequently.
Hence,thedemandisfairlyinelasticandcashflowsshouldbeaspredictedforthehotel
withminimalvariation.
Great!Wecanconcludethecasehere.Itwasreallygoodinteractingwithyou.
ICON, IIM Bangalore

117. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
117
•PE firm looking to invest in a hotel located near army cantonment
•Identify payback period
•Risk analysis for investment
•Hotellocated in army
cantonment area
•Used by trainees attending
conferences
•Hotels available in nearby
town:
•Cost of to and travel from
nearby town = $10
•Important to showcase breadth of thinking and MECE at every step
•Case solving can get numerical, get comfortable with calculations under time crunch
Army Cantonment HotelPE | Moderate| Accenture (Buddy)
Investment Analysis
Financial AttractivenessGrowth DriversRisksSynergies
RevenueCostsInternalExternal
Fixed
Variable
Food
Laundry
Accommodation
No. of roomsOccupancy RateOperational nightsTariff rate (per night)
Value based
Cost based
Competition basedAnnual Profits = No. of rooms * Occupancy Rate * Operational nights * (Tariff –Expenses)
= 400 * 0.75 * 365 * $(70-30) = $4.38M
Payback period = ($65000 *400)/$4.38M ~ 6 years
Attrition
Service Quality Dip
Poor Infra
Competition
Change in
allowance/venue
TypeTariff (/night)
Economy$50
Utility$75
Luxury$125
ICON, IIM Bangalore

118. 118
Pre-Kindergarten School InvestmentPE | Moderate |McKinsey (Partner)
ICON, IIM Bangalore
ThereisaPEfirmwhichwantstoinvestinapre-kindergartenschoolchainlikeKidzeewhich
operatesinMumbai.Whatadvicewouldyougivethem?
CanIasksomeclarifyingquestions?
Yesofcourse
IsitthefirsttimethatthePEFirmisventuringintotheeducationindustry
Yes,thisisthefirsttime
WhatisthehorizonofinvestmentthatthePEfirmislookingat?
5-10years.Canyoutellmewhatallelementswouldyouconsiderwhileanalyzingthecase?
Firstofall,Iwouldliketoestimatethesizeofthepre-kgindustry,lookatthemarketshare
ofthepre-kgchainthatourclientislookingtoinvestinandthenlookatthegrowthrateof
theindustryandthetarget’smarketshare.
Good.Pleaseproceed
Toestimatethemarket,IwoulddivideMumbaiinto5zones.Foreachzone,Iwould
estimatethenumberofmarriedcouplesintheagegroupof27to35.Before,Iproceed,I
wanttodoasideanalysisaboutwhocanaffordtoenrolltheirkidsinprekgschools
Ok.Pleasegoon.
<Iassumedsomeperannumfeesforapre-kgschool.ThenIassumedthatfamiliesspend
x%onrent,y%onhousingneeds,z%onleisureetc.Usingtheperannumfeesassumption
andthepercentageofincomespentoneducation,Iwasabletocalculatethecutofffor
familieswhocouldaffordtoenrolltheirkidsinthepre-kgschoolbasedontheirincome>
Ok.Howwillyouusethisinformation?
Nowwecanfurthersegmentthemarriedcouplesbetween27-35intothosewhocanafford
andthosewhocannot
Ok,themarketsizeisfine.Whatelsewillyouadvisetheclient?
Weshouldalsolookatthefinancialsofthepre-kgchain.Bylookingattheirassets,
liabilities,incomeandexpenseswewouldbeabletodeterminewhatpercentoftheir
revenuescomefromoperatingactivities.
Whatkindofexpensesdoyouthinkareapplicableforapre-kgchain?
AstheyareoperatinginMumbai,rentandleasewouldformamajorpartoftheirexpenses.
Apartfromrent,theywouldincurexpensesforsalaries,maintenanceandadvertising.
Ok.Whatelse?Doyouforeseeanyrisksfortheclient?
Oneriskcouldbethattheclientisnotabletofindsuitableteachersforengagingwithpre-
kgchildren.
Wait,whoisourclient?
I’msorry.ItisthePEfirm.<SincethiswasaPEclientwhowaslookingtoinvestinanother
company,Igotconfusedabouttheperspectivefromwhichthequestionisasked>
Noworries
Therisksforourclientarethatthepre-kgindustrycouldbecomeirrelevantinthefuture.
Thegovernmentcouldcomeupwithalawwherechildrenbelowxyearsarenotallowedto
study.Theschoolscouldstartopeningtheirownpre-kgchains.
Interesting.Anythingelse?
Thetechnologyisevolvingsofast.Infuture,robotscouldbedevelopedtotakecareofand
educatechildrenwhentheirparentsarenotathome.
Hahaha.Thatisstill15-20yearsaway.Itwasaninterestingdiscussion.Let’swrapituphere!

119. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
Invest in Pre-KG
kindergarten?
Pre-KG Market
Opportunity
Industry SizeIndustry Growth
Rate
Target’s Market
Share
FinancialsRisks
119
•A PE firm client has approached you for advice
•Objective: Evaluate whether or not to invest in a pre-kindergarten school chain like Kidzee
•Horizon of investment: 5-10
years
•Target company is in Mumbai
•Estimate market size using
no. of married couples,
affordability cut-off
Pre-Kindergarten School InvestmentPE | Moderate |McKinsey (Partner)
•Important to give step-by-step approach for market sizing followed by a verdict of whether the opportunity is lucrative
•Analysis of all 3 –market opportunity, financials and risks is required to be studied when evaluating a decision for a PE firm
ICON, IIM Bangalore
•Assets
•Liabilities
•Income
•Expenses (rent, salaries,
maintenance,
advertising)
•Relevance
•Technology

120. 120
Coal Mine InvestmentPE | Challenging | McKinsey (Buddy Case)
Case Statement:Your client is a PE firm who is looking to invest into a coal-miner based out South
Africa. Evaluate if it is a valuable investment for your client
Sure, thankyou for the case. Before I drill down to the factors to be analyzed, I have a set of
preliminary questions for our client. Firstly, I wish to know about the current portfolio of our client
and the future vision of our PE client?
MayIknowthereasonforaskingthisquestion?
Typically,PEclientslooktoinvestintofirmswhichareinlinewiththeirportfolioand/ortheirvision.
Eg–IfourPEclient,investsingreenfirmsandisconcernedwiththeESGimpactofitsinvested
firms,theninvestinginacoalminewouldn’tbeapartofmyrecommendation.
Great.Outclientisnotintogreenstocks,itscurrentportfoliocontainstraditionalenergyfirms
(Petrol,Coal,Gas).Hopethatanswersyouquestion.Doyouhaveanymorequestions?
Yes;FurtherIwouldIliketoknowifwehaveaquotedvaluationfromthecoal-miningfirm?
No,nothingasofnow.
Understood;Also,apartfromthefactthatcoal-miningisinsynchronizationwithourPEclient’s
portfolio,isthereanyotherpurposeofinvestingintothecoal-miningfirm?
OurclientwishestoearnadecentRoIfromthisinvestmentinthenext6-7years.Thereisno
predefinedRoIpreferred.Youareexpectedtoevaluatewhetherthiscoal-miningfirmhasthe
potentialforthesame.
Understood,Further,Iwouldliketoknowaboutthecustomerprofileofthecoal-miner,andifthere
areanyoutstandingcontractualobligationsofthecoal-miner.
ItsclientsarebasedoutsideofSouthAfrica,andtherearenocurrentcontractobligationsonthe
coal-miner
Understood;Further,Iwouldliketoenquireaboutthenumberofminesandtheirlocationinterms
ofdistancefromports,ifnot,whatarethetransportationfacilitiesavailable?Aspermy
understanding,thecoal-mineroughttohaveinterconnectivitywiththeportsfortransportationto
itsclientsoutsideofSouthAfrica
Goodquestion;themineroperatesonemineandisamajorplayerinSouthAfrica.Also,themineis
located relatively closer to the ports, and the coal-miner has interconnectivity with the ports for
transportation outside of South Africa; the miner itself transports to the ports and thereafter based
on the contract the shipment is shipped
Understood;Inowhaveafairunderstandingofthecase.Iwouldrequestfewsecondstostructure
mythoughtsandcomeupwithparameterstobeanalyzed.
Sure,takeyourtime.
So,inordertoevaluateifthecoal-mineisavaluableinvestmentforourclient,Iwouldliketofollow
a4-prongedapproach.Analyzethefollowing:
1.Macro-economicfactors(relatedtotheindustry)
2.Micro-economicfactors(relatedtothefirm–duediligenceandfinancialfeasibility)
3.Operationalfeasibility:Possibilityofourclient,PEfirm,totinkertheoperationsoftheinvested
firm(coal-miner)inordertoearnahigherRoIafter6-7years,theclient’sstatedperiodof
investment
4.ExitOptionsandRisk
Isthereanythingelseyouwantmetolookatoranythingspecificyouwouldwantmetodivein?
Canyoupleaseelaborateaboutwhatyoumeantbymacro-economicfactors?
Sure.So,followingarethepointersthatI’llbelookingundermacro-economicfactors:
•Analyzethesupplier(laborunions,equipmentmanufacturer)andbuyer(intheformof
geographicallocationsofmajorbuyers)landscapes
•Futuregrowthpotentialintheindustry
•Competitivelandscapeinsidethecoal-miningindustry
Great;canyounowelaborateonthefinancialfeasibilityanalysis?
Sure;IwouldwanttocalculatetheNPVusingadiscountedcash-flowmodelwhereinthe
parameterswillbeasfollows:
1.Freecashflows[basingfuturefreecashflowsbasedongrowth(ofbuyers,newmines)andrisks]
2.Hurdlerate(basedonthecurrentequity-debtstructure)
3.Terminalvalue;sincecoalisanon-renewableresource,henceaspermyunderstandingthe
coal-minewouldbeevaluatedevery5/6yearsbasedontherateofminingtogaugetheamount
ofcoallefttobemined.Thus,terminalvaluewillbeacriticalfactor
Interestinganalysis.Thankyou,wemaystopthecasehere.
ICON, IIM Bangalore

121. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
121
•Our client is a PE firm looking to invest in a coal-mining firm in South-Africa
•Portfolio of the PE firm is in traditional energy stocks (Petrol, Coal, Gas); not willing to invest in green stocks
•Overarching objective is to evaluate the investment opportunity
•Since there is no standard
framework for such case, aim
was to evaluate from the lens
of our PE client and form a
coherent (yet MECE) set of
parameters to be evaluated,
hence in that regard the 4-
pronged approach was
suggested
•Thought-process ought to like a
fishbone-diagram (or a decision
tree), wherein the final
objective formed the core of
the diagram (See right)
•When the interviewer pointed
out 1 mine, then it should click
as one of the risks
Coal Mine InvestmentPE | Challenging | McKinsey (Buddy Case)
•Critical to understand the rationale for investment
•The Interviewer might not be looking at the final problem to the solution, and maybe looking to evaluate the interviewee on aspecific set of parameters
•In case of M&A/PE cases, adequate time should be given to preliminary questions as the interviewer is looking to check your initial hypotheses with them
•There is no specific framework for such cases, hence it is critical to form an overarching framework (during the case) based on ones hypotheses of the case
Porter’s 5 forces
Competitive Landscape
Financial Feasbility
and stake to be acquired
Due Diligence
Macro-economic
Factors
Micro-economic
FactorsExit-Options
Operational
Feasibility
Evaluating
the RoIof
Investment
Company dynamics
–7S framework
PESTLE Analysis
Partial Exit
Presence of only
1 coal mine
Total Exit
Risks
IPO
Future growth
potential
Evaluating current
Management of the miner
Scalability Options
Potential Synergies
with the PE client
Plotting the value chain
to evaluate risks at each node
ICON, IIM Bangalore

122. IIMB Unconventional Cases
2022-23
122ICON, IIM Bangalore

123. 123
Firing Strategy for Twitter employeesUnconventional | Easy | BCG (Partner)
ICON, IIM Bangalore
YourclientisTwitter.Theyhavedecidedtocutdowncostsbyreducingtheworkforcepost
ElonMusk’sacquisitionofthecompany.Createafiringstrategyfortheemployeesofthe
company.
Thankyou.Thisseemslikeaveryinterestingcase.Iwouldliketostartbyconfirmingifthis
caseisinlinewiththecurrentnews.Also,Iwouldliketoknowthequantumofcost
reductionandthenumberofemployeesthecompanyislookingtolay-off.
Yes,thiscaseisbasedoncurrentevents.Theclientdoesnothaveanumberforcost
reductionbuttheywouldliketolay-off50%ofthestaff.
Doestheclienthaveanymetricstokeepinmindwhilelayingoffstaff?Orwouldyoulike
metoexplorethisfurther?
Whydon’tyoutellmewhatyouhaveinmind?
Iwanttofirstanalyzewhichemployeestofire.Myfocuswouldmajorlybeonproductivity.
ButsomeothermetricsI’dalsoliketoconsiderwouldbetheirhistoryofdisciplineandthe
abilitytomeetgoalsandworkwithinateam.Thesemetricswouldvaryfromfunctionto
functionandweneedtotailorthemetricsforeachfunction.ThenIwouldliketofigureout
whatseverancepackageshouldbegiventotheemployeesbeinglaidoff.Finally,Iwouldlike
tolookintohowtohandlethenegativePRthismassfiringwouldgenerate.
Goahead.
Iwouldliketosplittheworkforceastechnicalstaff,managementstaffandsupportstaff.Am
Imissinganythinghere?
No,youarenot.Pleasegothroughtheseone-by-one.
Startingwiththetechnicalstaff,thiswouldincludeteamsindevelopment,testing,system
architecture,etc.Asperrecentnews,Muskisfiringemployeesbasedonthenumberof
linesofcodetheyhavewritten.Thisisobviouslynotthebestwayoffiringpeople.An
alternateapproachthecompanycouldtakewouldbelookingatotherholisticproductivity
metricslike360-degreepeerevaluations,engineeringleaderevaluations,task-completion
predictability,etc.WouldyoulikemetoexplorethisfurtherorshallImovetothenext
function?
Amongstthethreethatyoumentioned,whichfunctiondoyouthinkTwittercandoaway
with?
IthinkTwittercanaffordtodoawaywiththetopmanagement.Thisisbecauseofaclear
disagreementinthevisionforthecompany.MuskcanbringinpeoplehetrustsfromTesla
orSpaceX.Thedevelopersandtheengineersarecrucialtothefunctioningofthecompany,
buttheyarealsohighlypaid.Twitterwouldbeablesavecostsbylettinggosomepeoplein
thisfunction.
Okay.Let’stalkaboutthesupportstaff.Whichteamscomeunderthis?
ThemajorcomponentswillbeHR,Marketing&PR,AdminandtheMaintenancecrew.
WhatwillyourconsiderationsbeunderMarketing&PR?
Tesladoesnothaveamarketingfunction.ElonMusk’sTwitterhandleistheonlyvoicefrom
thecompany.MuskmightwanttofollowthesamestrategyforTwitter.ThePRteamwill
havetowiselynavigatethebacklashTwitterwillgetforfiringemployees.Thereisnoway
theycanjustifythistothegeneralpublic.Thentheonlythingtheycandoiscoveritupwith
somepositivePR.
Giveabriefsummaryofyouranalysis
Theworkforcecanbesplitintoengineers,management,andsupportstaff.Wediscussed
changingthetopmanagementandlettinggoofengineersbasedonsetproductivity
metrics.WealsospokeabouthowTwittercanhandlethenegativePR.
Thankyou,wecanclosethecasehere.

124. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
124
•Twitter wants to cut down costs through reduction in workforce.
•What are the considerations?
•Very open-ended case
•Classify employees based on
work-type
•Mention metrics that are
relevant for each department
•Specific preliminary questions help in tackling open-ended cases
•Make a structured approach
•Be fast during analysis
Firing Strategy for Twitter employeesUnconventional | Easy | BCG (Partner)
Firing Strategy
Who to fire?Severance PackageNegative PR Management
•Management
•Tech Staff
•Support Function
•Pay-to-Quit Policy
•3 month severance
•External consultant
ICON, IIM Bangalore

125. 125
Cancellation rates of a cab aggregatorUnconventional | Easy | BCG (Buddy)
ICON, IIM Bangalore
YourclientisacabserviceproviderwithabusinessmodelsimilartoaggregatorslikeUber,
Ola,etc.Theclienthasanappthroughwhichcustomerscanmaketheirbookings.Theclient
hasseenariseincancellationratesforthepast10months.Theclientwantsyourhelpto
figureoutthereasonsbehindthesame.
Thankyouforthecasestatement.BeforeIdelvedeeperintotheproblem,Iwouldliketo
asksomeclarifyingquestionstogetabetterideaabouttheproblem.Isthatalright?
Sure,goahead.
Couldyouhelpmeoutwiththegeographyofoperationoftheclientandwhetherthe
problemispersistinginaparticularregionoracrossallgeographies?Iwouldalsoliketo
knowwhetherthisproblemisbeingfacedonlybyusorbyothercabaggregatorsaswell.
Theclienthasapan-Indiapresencesince10years.However,inthelastyearorso,ithas
triedtoenterintosmallertowns,especiallyinSouthIndia.Thecancellationrateshave
mainlyseenanincreaseinsomecitiesofSouthIndia.Andno,ourcompetitorsarenot
facingthisissue.
Okay,soitseemstobearegion-specificproblem.Justanotherquestion,istherisein
cancellationratesseenacrossallthecabtypesweprovide,orisitspecifictooneparticular
cabtype?I’massumingtheremustbedifferenttypesofcabssincethemodelissimilarto
Ola/Uber.
Youcanassumethatthetypeofcabisnotafactorfortheanalysis.Thecancellationrates
havebeenuniformacrosscabtypes.
IthinkIhavesufficientinformationtobreakdowntheproblem.Iwouldliketobeginby
lookingatthecustomerjourneytoisolateapotentialproblemareainthesame.Then,I
wouldliketolookatthefactorswhichcouldpotentiallycreateanissue.Oncetheroot
causeisidentified,Icanrecommendsomesuggestions.Doesthisapproachseemfair?
Thatsoundsgood.Whydon’tyoubeginwiththecustomerjourney.
Suresir.SoasIunderstandit,initiallythecustomerwillrealizeaneedforthecabtotravel
fromoneplacetoanother.Inordertobookacab,thecustomerwouldsearchdifferent
platformsandcomparethepricesandwaitingtimes.Afterdecidinguponaparticular
serviceprovider,thecabwouldbebooked.Fromthepointofbookingthecabtillthepoint
whenthecabreachesthecustomer’slocation,thecustomerhastheoptionofcancellinghis
ride.Iassumethatoncesheboardsthecab,thecustomerwouldnotbeabletocancelthe
ridesincethemodelissimilartoOla/Uber.
That’safairassumptionaboutcancellations.Thecustomerjourneyseemsfine.Couldyou
thinkofsomereasonsbecauseofwhichacustomermightcancelherbookingduringthe
waittime?
Acustomerusuallycancelsherrideduetohighwaitingtimes.Thereasonsforthiscanbe
categorizedasfollows-(i)Inaccuratelocationmapping,(ii)Inabilitytoconnecttodriver
and/ormiscommunication,and(iii)Availabilityofbetteralternativetransportationpost
booking.Wouldyoulikemetolookintoanyspecificaspectsir?
Youcanassumethatthetechnologyisatparwithothercompetitors.Moreover,the
customerbooksacabonlyafterconsideringdifferentalternatives,anditsunlikelythata
betteroptionwouldariseafterbooking.Whydon’tyoufocusonthepotential
communicationissues?
Right,sir.Soyoumentionedthatthisincreaseincancellationrateshasbeenseeninsome
citiesoverthepast10months.Couldyouhelpmeunderstandabitmoreaboutthecab
driversinthesecitieswherewehavenewlyentered?
Soinalotofthesecities,therewaslimitedavailabilityofdriversbutsufficientdemand.Asa
result,weprovidedincentivestodriversfromneighbouringstatestocomeworkinthese
cities,inthebeginning,togetouroperationsgoing.
Isee.Sosir,amajorreasonforthemiscommunicationbetweenthedriversandthe
customerscouldbethelanguagebarrier.Sincealotoflocalswouldnotspeakthelanguage
spokenbythedriversfromtheneighbouringstates,theymighthavedifficulty
communicatingwiththemleadingtohighwaitingtimesandeventualcancellation.
That’scorrect.Languagebarrierhasbeenamajorreasonbecauseofwhichcustomersare
unabletoaccuratelydescribethepickuplocation.Wecanclosethecasehere,thankyou!

126. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
126
•Rise in cancellation rates for a cab service provider
•Problem seen over last 10 months
•Identify the root cause of the problem
•The client has business model
similar to aggregators like Ola
and Uber
•Pan-India operations but the
problem is seen only in
specific South Indian cities
where the client has newly
entered
•Cancellation rates are uniform
across different types of cabs
•Understanding the customer
journey is key to pinpointing
the problem
Cancellation rates of a cab aggregatorUnconventional | Easy | BCG (Buddy)
•Clarify all elements of the problem statement in the beginning (should have asked what is exactly meant by ‘cancellation’ in theclarifying questions)
•Buy in the interviewer at every step of the customer journey and the problem diagnosis
•Interviewer doesn’t ask for recommendations, but you can confirm again in case he would be okay with some suggestions toward theend
ICON, IIM Bangalore
Customer Journey
Need
Generation
Search for
Cab Booking
Platforms
Compare
Prices and
Wait Times
Finalize
Platform
and
Book
Waiting for
Cab to Reach
Pickup
Location
Sit in Cab to
Undertake
Journey
Problem Diagnosis
High Waiting Time for Customer
Inaccurate Location MappingInability to Connect/
Miscommunication
Availability of Better Alternative
Transportation post Booking

127. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
127
•The cancellation rates of a cab aggregator has increased by 5% over the past 10 months. We need to analyze the reasons and come up
with recommendations for resolving the issue.
•Cancellation rate is 5%
•Over a 10-month window
•The problem of cancellations
is in South India only.
•Asking clarifying questions exhaustively. Clearly understanding the meaning of metrics.
•Breaking down the customer journey to capture customer pain points.
•Dividing recommendations into short and long term.
Cancellation rates of a cab aggregator (Alt)Unconventional | Easy | BCG (Buddy)
ICON, IIM Bangalore
Cancellation
Rates
Demand
AwarenessNeed
GenerationAvailabilityAbility to book
a cab
Quality of appMap Accuracy
Language
Differences
Ability to find
locations
Ability to
move pins to
locations
Ease of
Payment
Driver accepts
the request
Driver arrives at
the specified
location
Supply
Non-availability in
certain routes
Non-availability in
entire region

128. 128
Transport Infrastructure ImprovementUnconventional | Easy | Arthur D Little (Buddy)
ICON, IIM Bangalore
Agovernmentministryhasreachedouttoyouandwantyourhelpinimprovingtransport
andlogisticsinthecountry.
Oh,thatsoundsinteresting.BeforeIdiveintotheproblem,Iwouldliketounderstandis
thereanyspecificmodeoftransportoutofroad,rail,water,airandropewaysweare
focusingonorwillwelookatthecombinationofall.
Thatisagoodquestiontostartwith.Wewillbefocusingonroadtransportonlyfornow.
Isthereanyspecifictimeframeinwhichtheseimprovementsneedtobemadeandisthere
anyspecificobjectivebehindthis?
Timeframeisnotpre-definedandtheobjectiveisasonewouldexpectthatGOIwouldlike
toimproveuponthecurrentlyavailablefacilities
That’shelpful.Giventhatwearetalkingaboutlogisticsandtransport,Iwillbefocusingboth
onthetransportofgoodsaswellaspeopleforthisdiscussion.Isthatokay?
Sure.Goahead
Great.Iwouldliketoconsidertwoaspectsofimprovementhere.Oneisroadinfrastructure
intermsofconnectivityandquality.Secondisthepublicnetworkintermsofthenumberof
publictransportservicesavailable.
Soundsgood.Let’sfocusonroadinfrastructureaspecthere
Ok.Whentalkingaboutroads,wecandividethemmajorlyintotwotypesi.e.intra-city
connectingroadsandinter-cityconnectingroads.GiventheprojectisbeingdonebyGOI,I
willprimarilygointodepthforinter-cityconnectingroads.Doesthatsoundokay?
Sure.
So,theimprovementareaswithininter-citytravelcanbeclassifiedasimprovementin
referencetoexistingroadsliketollssetup,additionoftrafficsigns,roadpitsimprovement,
orcreationofnewroadswhichincludesavailabilityofroutesandsetupofalternatepaths.
Thatseemslikeagoodclassification.Byimprovementineitherwhatisthemetricyou
wouldtracktounderstandifyoufulfilledyourobjective?
Trendsinthenumberofaccidentsandtimetakentocompleteajourneypreandpost-
changearethemajormetricsIwouldlookat.
Right,sogiventhattimeisourperformanceindicator,whatarethefactorsyoucanchange
toimprovetheamountoftime?
Thosewouldbespeedanddistance.
Right,let’stalkonhowwecanimproveeachofthem?
Sure.Iffeasible,improvementindistancecanbedonebycreatingdirectpathsorflyovers
whereverneedexists.Forexample,ifthereare3citiesA,BandC,andapersonhastocross
BeverytimeonedecidestogofromAtoC,wecansuggestcreatingadirectpaththereifits
possibletoreducethejourneytime.
Okay.Somanysuchplacesexistwhichcanbeconnecteddirectly.Howwouldyou
recommenddecidingwheretobuildaroadandwherenotgivenwecannotmakeone
everywhere?
TodecideIwouldlookatthetrafficcongestionontheroadstounderstandthedemand
peoplehavefortheprospectiveroutei.e.howmanypeopleonaveragetravelfromAtoC
directly.Iwouldalsolookatthedeclineincostforindustries.
Thatsoundsgood.Inreferencetodemandthough,howelsecanyoubetterestimateit?
Assumingthattollsexistonthispath,wecanusedataavailableinreferencetotollstogeta
moreaccuratenumber.FASTagdatawouldbeeasilyavailablegivenit’sbeenimplemented
Yes,thatiswhatIwaslookingfor.Let’smovetospeednow.
Yes.Whileweshouldkeepinmindwhetherregulationsintermsofspeedlimitsarebeing
metaswellasensurethatwearenotcreatingaccident-proneroads,speedcanbe
increasedbyimprovingroadconditionsthroughregularmaintenance,keepingacheckon
thenumberofspeedbumpsandreducingstopsliketollsifpossible.

129. 129
Transport Infrastructure ImprovementUnconventional | Easy | Arthur D Little (Buddy)
ICON, IIM Bangalore
Itcanalsobeincreasedbyhavingmulti-lanebroadroadsascomparedtoone-wayroadsor
narrowroadinfrastructure.
Thatcoversit.Canyousummarizewhatwediscussedonce.
Sure.Wehavetriedtocomeupwithsolutionstoimprovethelogisticsandtransportsystem
inthecountryinreferencetoroadways.Wefocusedonimprovingroadsintermsofinter-
cityroadinfrastructure.Wecandothisintwoways–byimprovinguponexistingroadsor
bybuildingnewones.Astheobjective,ineithercase,istoreducethetimetakentogo
frompoint1topoint2,wediscussedhowwecanreducethedistancebybuildingdirect
connectingroadswhereverpossiblebasedoncertainconditionsandhowwecanincrease
speedbyimprovingonroadconditionsviavariouschanges.
Perfect.Thankyou,wecanwrapthecasehere.

130. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
130
•Your client is the Ministry of Road Transport and Highways of India
•You are asked to improve the transport and logistics in the country.
•Focus only on roadways
amongst other modes of
transport
•Within road transport,
focusing only on
infrastructure-based
improvements on inter-city
connecting roads
•No particular timeframe for
change
•Covering both –people’s
travel and transportation of
goods
•Important to check on all possibilities and ask the interviewer what to focus on for the scope of the case. Do not self-define the scope
•Adapting to change in case direction like moving from first structure to time reduction as the interviewer indicated should be smooth. Taking cues from the interviewer wherever possible is important
•Preliminary questions should include clarification on the case statement itself like ‘what does it mean by improving in the given context?’
•Avoid going into monologue though it does get difficult to keep it crisp and structured in unconventional cases. Make it conversational.
Transport Infrastructure ImprovementUnconventional | Easy | Arthur D Little (Buddy)
RoadTransport
Road
Infrastructure
Inter-city Roads
ExistingRoads
NewRoads
Intra-city Roads
PublicNetwork
Time
Speed
Road
conditions
Broad/narrow,
lanes
Tolls/Speed
breakers
Distance
Demand
Industry Cost
Decrease
ICON, IIM Bangalore

131. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
131
•Your client is the Ministry of Road Transport and Highways of India
•You are asked to improve the transport and logistics in the country.
•The Indian government
wanted to improve the road
transportation of the country
•The candidate was initially taken aback because of the unconventional nature of the case. Especially since it is a governmenta lot of the usual preliminary questions became useless here. The candidate tried to force fit MECE initially till the interviewer course-corrected him
•The interviewer purposefully hid the fact that it was the road transport ministry and wanted the candidate to ask the right questions
•Simpler and easier MECE is always better
Transport Infrastructure Improvement (Alt.)Unconventional | Easy | Arthur D Little (Buddy)
Transportation
Airways
Roadways
Intercity
Existing Roads
Demand
Operations
New Roads
Fast tag data
Govt Survey
Intracity
Create new
roads/ flyovers/
infra
Repair existing
roads
Divert Traffic
Waterways
ICON, IIM Bangalore

132. 132
Construction companyUnconventional | Moderate | Bain (Partner)
ICON, IIM Bangalore
Your client is a construction company facing challenges in the delivery of projects. Analyze
the root cause and suggest solutions
Thanks for the interesting case. Before proceeding further, I have a few preliminary
questions for clarification
Yes, please go ahead
May I know more about the client? What type of construction work does the company
undertake like residential/commercial buildings, roadways, airports, geotechnical fields like
tunnels, seaway construction like ports, etc.?
Sure. The client is a road construction company in India
Great. What are the challenges the client is facing exactly? Is it profit issues or delivery
issues or any other issues and for how long has our client been facing the problem?
The client has been facing delays in the delivery of projects on time to customers by 2-2.5
years as compared to its competitors in the past 6 months.
Okay. So can we focus on the objective of reducing the time of delivery of projects for the
client?
Yes, go ahead. That’s the right approach.
So, the client is a roadway construction company. There are 3 types of roads majorly found
in India, bituminous, concrete, or composite. May I know what kind of roads the client
constructs?
Yes, the client constructs composite expressways.
Okay. Before proceeding further, I want to clarify that as this is client-specific and not an
industry issue, are our client resources adequate, and can I focus on the process
bottleneck?
Yes, our client is a major player in the industry and hence resource sufficient
Ok. To construct an expressway, the process-flow diagram is as follows. Following up on
government announcements, bidding process, design, procurement, construction,
maintenance, repair, and toll collection. A delay in any of these processes before
maintenance causes a delay in the overall delivery. Should I focus on any bucket?
This is an excellent way of constructing a process diagram. Our client has been facing a
delay in the design and construction stages of construction.
Okay. I am assuming that the design process is carried out by the internal design team and
then the engineering team constructs the roads on site. There could have been a delay in
the design process which can be divided into 3 categories. Internal team inefficiency, over-
designing, or over-complicating design, or irrelevant or incompatible design of expressway
so that it has to be redone again.
Wow, that’s a very structured approach. You are correct that the issue lies in over-
complicating the designs by the design team so it takes time for the engineering team to
come back and forth. Can you think of any such instances?
Okay. I can think that as this is an expressway, for example, the clover-leaf intersection is
not required unless it is eight-way traffic but when it is designed, it takes time for both
design and construction.
Precisely, that is the reason our company is facing the issue of late delivery of projects as
compared to similar constructions by our competitors. Now can you think of ways of solving
this issue?
Sure. I can divide my recommendations into the short and long term. In the short term, our
client can do cross-verification with other internal design teams for design efficiency before
proceeding with construction as this reduces time and cost inefficiency. In the long run, our
client can induct a specific design efficiency and quality management team for the design
vertical for improved efficiency.
All right let us close the case now. Thank you!

133. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
133
•Client is a construction company facing challenges in the delivery of projects.
•Root cause Analysis must be carried out and solutions must be proposed
•Client is a road construction
company in India
•Delay in project delivery by
2-2.5 years as compared to
competitors
•Client constructs composite
expressways
•Asking about the industry is essential if the candidate has no prior experience/ knowledge of the industry
•Candidate could have asked about the industry structure i.e. oligopoly
•No particular case structure is followed here
Construction companyUnconventional | Moderate | Bain (Partner)
Legal
processBiddingDesignProcurementConstruction
Post-
construction
service
Construction process
Internal team inefficiency
Over-designing
Incompatible design
Bottleneck
ICON, IIM Bangalore

134. 134
Indian Football FanbaseUnconventional | Moderate| Bain (Partner)
YourclientisChelseaFootballClub,asuccessfulPremierLeague(PL)clubinUKwhichhas
recentlybeenacquiredbyanewowner.ThenewownerwantsyoutogrowtheChelsea
fanbaseandfanengagementinIndia.Suggesthowwouldtheyshouldgoaboutit.
ThisisaninterestingproblemgiventheresurgenceoffootballinIndia.Iwouldliketoaska
fewpreliminaryquestions.WhatisthecurrentfanbaseofChelsea?Iassumemostfans
wouldbeintheUKandEUsowhatothercountrieshavesignificantfanbase?
Chelseahaveaprominentfanfollowingofaround100-150Mfansworldwideandonly
about20%areoutsidetheUKandEU.USAandIndiaarethetwomostpromisingcountries.
Interesting.USAhasasaturatedsportsfollowingwithNBA,NFL,MLBandMLSwhileIndia
seemstobeanuntappedmarketforfootballwithonlyIPLcommandingaudienceofcricket
lovers.IsupposethatiswhyChelseaisfocusingontheIndianfansfirst.Whatisthe
compositionoffootballfansinIndiabyclubs?Whatistheirgrowthrate?
Yes,thatiscorrect.AmongallPLfootballfansinIndia,ManchesterUnitedfansare30%,
LiverpoolandArsenal20%each,Chelsea15%andrestfollowtheotherclubs.Thegrowth
rateishighlydynamicbasedoneventsbut5-10%seemstobeafairnumber.
Thereseemstobeagoodopportunitytogaingreatershareoffans.Iseemerchandise
sales,ticketsalesandclubmembershipaspossiblerevenuestreams.Doestheclienthave
anygrowthtargetintermsofrevenueorfannumberswithinaspecifiedtimelineandany
budgetconstraints?
Youarecorrectregardingtherevenuestreams.Theobjectivecurrentlyistogrowthe
fanbaseonlyandthenewownerisreadytoinvestwithatargetofgrowingby50%innext3
years.
Thankyou.CanyoutellmewhatarethecurrentactivitiescarriedoutbyChelseatoreach
andengagefootballfansinIndia?Iamawareaboutfewinformalfanclubsandsocialmedia
interactionthroughBollywoodactorArjunKapoorwhoistheIndianbrandambassador.
That’scorrect.Chelseacurrentlyengagethroughsocialmediawithitsfansandconduct
giveawaysforfewluckyonestoattendamatchattheclubstadium.
Understood.Now,Iwouldapproachtheproblemintwoways–Increasingfanbasetogain
newfansandincreasingengagementfortheexistingthefans.Iwouldliketostartwiththe
primaryobjectivetoincreasefanbasefirst.ShouldIgoaheadestimatingthepotential
fanbase?
Sure,let’sfocusontheelementsthatyouwouldlookattogettotheestimate.
Myassumptionhereisthateverysportsenthusiastcanpotentiallybecomeafootballfan
andthenaChelseafansoIwouldconsiderallthemajorsportsfansuchascricket,football,
hockey.Iwouldlookatthedifferentavenuesoffanengagementprimarilyinonlineand
offlinemodes.Inonlinemode,Iwouldlookattheviewershipaswellasthesocialmedia
followercounts.Inofflinemode,Iwouldconsiderticketsalesandmatchscreening
attendanceformajoreventssuchasIPLandISL.Wecanfurtherdividethemintoexisting
andnewfootballfansoutofwhichweshouldconsideronlythenewfansasexistingfans
havetheirloyaltytiedtotheirclubsandwouldnotswitchsoeasily.
Thatmakessense.Whatshouldwedotogrowintothispotentialfanbase?
Tounderstandthis,Iwouldbreakdownthejourneyofasportsenthusiasttobecominga
footballclubfan.Itstartswiththeenthusiastgettingtoknowaboutthegame,witnessing
andenjoyingthegame,likingaplayerorateam,interactingwiththeclubandotherfans
andcontinuedengagementwiththeclubasafanwhileadvocatingtheclubtobringnew
members.Icannowlookatactionswecantaketoimprovethisflow.
Interestingwaytolookatit.Youcangoaheadwiththeactions.Considerthecurrentand
upcomingeventsinplacetodeviseyourstrategy.
Sure.GiventhatIndiahasadominantcricketfanbase,itwouldbegreattohaveprominent
cricketingfacessuchasViratKohliasabrandambassadortointroducethegameonsocial
mediawhiletheT20andFIFAWorldCupsarehappeninginthenexttwomonths.Wecan
conductfriendlyfootballgamesbetweenIPLandISLteamsataffordableticketpriceslike
theAll-StarsFootballtournamentheldwithBollywoodandcricketingstars.Chelseacanalso
screentheirmatchesandWorldCupmatchesatsportsbars.TheChelseaplayerscanbe
calledoutbeforethegamesothatfansstartlookingforthemduringthegameslike
ICON, IIM Bangalore

135. 135
Indian Football FanbaseUnconventional | Moderate| Bain (Partner)
ThiagoSilvainBrazilandMasonMountinEngland.Also,theplayersnotparticipatinginthe
WorldCupcanflytoIndiatointeractwithfans,distributesignedjerseysandshowcasetheir
skillsinfutsalorplayafriendlywiththeIndiannationalteamliketheonesheldwithAC
MilanandFCBarcelona.Advocacycanbeimprovedbypromotingword-of-mouthmarketing
oversocialmediaplatformssuchasTwitter,InstagramandChelseamobileapp.Inthelong
term,ChelseacanpartnerwithAIFFtoopenayouthacademytonurtureandscout
footballingtalentinthecountrytoservethefanbaseaswellastheiryouthacademy.
Thoseareacomprehensivesetofsolutionsforattractingnewfanstotheclubfanbase.Can
youbrieflymentionwhatadditionallywouldyoudotoengagetheexistingfans?
IthinkitispertinenttoopenanofficialfanclubinIndiaalongwithbrandedsportsbarsin
Tier-1citiesasalreadypracticedbyManchesterUnitedandLiverpool.Regularmatch
screenings,dedicatedmerchandiseoutletsandcompetitiveeventssuchastriviaquizand
fantasygames(FPL)withgiveawaysatthesevenueswouldkeeptheexistingfansenjoytheir
favouriteclubatbest.Loyaltyprogramssuchasdiscountedclubmembershipsforexclusive
faneventsandstadiumtourscanalsobeinitiated.
That’sgood.Wecanclosethecasehere.Itwasanicediscussionandinterestingideasto
takeforwardwithme.
ICON, IIM Bangalore

136. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
136
•Client is Chelsea Football Club, a successful Premier League club in the UK
•New owner wants to grow the club fanbase and improve fan engagement in India
•Identify ways to attract new fans and suggest strategic plan
•Current fanbase –100-150M fans
worldwide
•Only 20% fans outside the UK
and EU nations. USA and India
are most promising in potential
fans.
•Premier league club fans in India:
•Manchester United –30%
•Liverpool –20%
•Arsenal –20%
•Chelsea –15%
•Grow 50% in 3 years while
current annual growth 5-10%
•Current engagement activities
limited to social media
interactions and ticket giveaways
to lucky winners.
•Focus on fans ignoring profits
•Segmentation of customers as new and existing fans and considering loyalty as a filter
•Using customer journey to understand the focus at different stages to develop new fans
•Understand the time setting and awareness about recent events such as World Cup to use the information in the case
Indian Football FanbaseUnconventional | Moderate| Bain (Partner)
Chelsea Football Fanbase
New Existing
Market sizeCustomer journeyHigher
Engagement
New football fansExisting football
fans
Other sportsNew PL fans
Sport AwarenessSporting Event
access
Customer Journey
Club Selection
Fan
Experience &
Connect
Retention &
Long term
engagement
InfrastructureFan EventsLoyalty programs
Club Advocacy
ICON, IIM Bangalore

137. 137
Consulting firm expensesUnconventional | Moderate | Kearney (Buddy)
ICON, IIM Bangalore
Yourclientisaconsultingfirmlookingtoreducetheirtravelexpenditure.Whatarethe
possiblesetofrecommendationsyoucanprovide?
Sure,Iwouldliketobeginbygettingafewclarifications.Isthereaspecificcostreduction
targettheyhaveinmind?Also,dotheyhaveatimelineinmindbywhentheyarelookingto
achievethesetargets?
Theyarelookingata6-monthto1-yearperiodbutdonothaveatargetinmind.Iwould
encourageyoutoproceedwithyourownassumptionsandwe’llkeepthediscussion
recommendationfocused
Understood.Consideringtheirtravelexpensesarearesultofconsultantstravellingforwork
assignments,Iwoulddividetheexpensesinto4broadbuckets:
1.Inter-citytraveltoclientlocation(viaair)
2.Intra-citytravel(companycars/cabs)
3.Accommodationexpense
4.Foodandotherbills/allowances
Alright,thatsoundscomprehensive.Shallwebeginbylookingintotravelexpenses?Would
behelpfulifyoucouldlistdownthevariouscostleverswithinthebucketandprovide
recommendationsalongside?
Startingwithinter-citytravel(bothdomesticandinternational),thefollowinglevers
determinetheircosts.
1.Modeoftravel
2.Frequencyoftrips
3.Numberofticketspertrip
4.Priceperticket(determinedbythetimeandmodeofbookingandtypeofseatbooked)
Pleaseletmeknowifyou’dagreeandIcanthenproceedwithmyfirstsetof
recommendations
Soundsgood.Themodeoftravelissomethingwewillnotbeabletochange.Also,let’s
restricttheanalysistodomestictravel.Pleaseproceedwithyoursuggestions
Inordertoreducethefrequencyoftravel,thefirmcanbetteralignwiththeirclientsonthe
projecttimelinesrightatthebeginningtoensuretheteamcanplantheirtravelwith
minimumflybackstotheirhomelocations.Thiswouldalsoenablethefirmtobookwellin
advance,sotheircostsareminimized.Groupfaressometimesarelowerthanindividual
faresandhence,visibilityherewouldhelpustakeadvantageofgroupbookings
Themethodofbookingcanhaveadirectimpactontheairfare.Wecanmakeuseof
corporatediscountsbybookingdirectlywiththeairlineorwecanbookthroughadifferent
travelagenttogetbetterdiscounts.
Ensuringthatwesendleanerteamstoclientlocationcanhelpusreducethenumberof
bookings.WecanalsomandatethatthejuniorstafftraveleconomywhileonlythePartners
travelbusinessclass.
Great!So,togettheconsultingteamsfromtheairporttohotelorfromthehoteltothe
clientoffice,weusealocalcabservice.Wouldyouliketolookintothisbucketnext?
Wecantakealookatcabservicechargesandpertripcharges(determinedbythe
frequencyoftravel).Wecancomparelocalcabserviceratestouber/olaratestoensure
wearepayingacompetitiveprice.ReimbursingUberridesmightbeagoodideaincasethat
ismoreeconomical.Carpoolingwhiletakingthecabsisaneffectivewayofreducingcosts.
Alright.Let’snowtakealookataccommodationexpenses
Whilelookingataccommodation,wecanlookintothebelowlevers.Pleaseletmeknowif
theyseemokayandIcanthenproceedwithrecommendations:
1.Typeofhotelbooked(premium/luxury/airporthotel)
2.Timeandmodeofbooking
3.Durationofstay
4.Occupancyrules
5.Typeofroom(deluxe/suite)
6.Distancefromtheairport/clientlocation

138. 138
Consulting firm expensesUnconventional | Moderate | Kearney (Buddy)
ICON, IIM Bangalore
Soundsgood.Pleaseproceedwithyourideas
Ifitseemsfeasibletotheclient,theycanlookatbookingasemi-premiumhotelforjunior
staffwhiletheyretainluxuryhotelsforPartners.Theycanalsoidentifyhotelsthatcanoffer
betterdiscountsbyformingalong-termcorporatepartnership.Bettervisibilityonproject
timelineswillenablethemtobookwellinadvance,thus,reducingcosts.Theclientcanlook
intohotelsthatareclosetoclientlocation,sincethiswouldalsoreducetheteam’s
everydaycabtravel.Theclientcurrentlyhasoneemployeeperhotelroom,theycantry
accommodatingtwoemployeesperroom.Again,adoptingadifferentialpolicyinrooms
allocatedtojuniorstaffandseniorstaffcanbeuseful.Additionally,in-hotelexpensessuch
asfoodorderingcanbecappedonaper-daybasis.
Movingontoancillaryexpenses,theclientcurrentlyreimbursesuptoRupees3,000perday
forfoodbills.Anyquickrecommendationsinthisregard?
Whiletheclientcanreducethecaporapplyadifferentialcapforsenioritylevels,another
recommendationwouldbetomodifythecapforonTier1andTier2cities.Whilespending
Rupees3,000forfoodmightbereasonableiftheprojectlocationinMumbai,maybea
loweramountwouldsufficeforaprojectinBhopal.
That’sfair.Thankyou,wecanclosethecasehere.

139. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
139
•Your client is a consulting firm looking to reduce their travel expenditure
•Identify the various cost buckets and provide a comprehensive set of recommendations across each
•Travel includes transit and
accommodation. In case
unsure, the candidate must
clarify with the interviewer
•Brownie points for listing
‘miscellaneous (food & other
bills/allowances)’ as a bucket
•No conventional framework
•The interviewer clearly states they are looking for recommendations and encourages the candidate to proceed with assumptions
•If there is no guidance from the interviewer, the candidate must apply 80/20 rule and select the biggest cost buckets to tackle first
Consulting firm expensesUnconventional | Moderate | Kearney (Buddy)
Travel Expenses
Inter-city travelIntra-city travelAccommodationMiscellaneous
Mode of travel
Frequency
No. of tickets
Price per ticket
Time of
booking
Mode of
booking
Type of
seat
Cab service provider
Frequency
Distance
Type of hotel
Time & Mode of
booking
Duration of stay
Occupancy rules
Type of room
Distance from
airport/client
Reduce overall
allowance
Differential
allowance based on
location
ICON, IIM Bangalore

140. 140
Boiler manufacturing companyUnconventional | Moderate| Strategy& (Partner)
ICON, IIM Bangalore
CaseStatement:ABoilermanufacturingcompanyinIndiahashiredyoutoimproveitsOn-
timeperformance(OTP)by25%.Pleasegivemeastructuredapproachtohowyouwould
goaboutit.Trytoincludesomedigitalsuggestionstoo.
Beforegoingdeeper,Iwouldliketounderstandourclient.Iwanttoconfirmtheproducts
madebyourclientandthepotentialcustomers.Ialsowanttounderstandifthereisany
specificreasonwhyourclientwantstoincreaseOTP.
Ourclientmanufacturesstandardisedboilersandheaters.ThekeycustomersareShell,BP,
andReliance.Theywanttoincreasetheefficiencyatwhichtheworkisbeingexecuted;
hencetheywanttoimprovetheOTP.
Okay.So,Iwouldliketodividethevaluechainofourclientandproceedwithgiving
suggestionsforeachpartofit.Doesthatseemacceptabletoyou?
Yes,pleaseproceed.
Thevaluechainforourclientwillbeengineering,inboundlogistics,procurement,shop
floormanufacturing,qualityassuranceandcontrol,logisticsprocurementandfinaldispatch.
Doesitseemsuitabletoyou,oramImissinganything?
Itseemsfine.Youcanstart.
Ifeeltheenggdept.isinvolvedindesigncalculationsandthepreparationofdrawingsusing
softwaresuchasCADandANSYS.WecanimprovetheOTPbysubcontractingtheworkto
thirdparties,hiringmoremanpower,usingpastdrawingsasareferencetoavoidre-workas
productsarestandardizedandhiringyoungtalentedfreshgraduatesfromgoodcolleges.
Thedrawingspreparedcanbemadeaccessibletoalldepartmentsthroughacentralized
ERPplatform.Delaysinapprovalscanalsobetracked/improvedthroughtheplatform.Do
thesesuggestionsseemfine,ordoyouwantmetothinkmore?
Thesearegoodsuggestions.Youcanproceedtothenext.
InboundlogisticsOTPcanbeimprovedthroughreverseauctions.Acontractwillput
pressureonthevendorstodeliverontimethanprocuringvehiclesfromtheopenmarket.It
willalsoprovideanaddedadvantageofcostsaving.Arethesefine?
Thesearefine.Pleasegotothenext.
Inprocurement,Iwouldfirstliketounderstandthecurrentsystem.Iwouldliketoknowthe
rawmaterialsprocured,detailsofvendorsandtheircurrentlocation.
Ourclientprocuresrawmaterialssuchassteelplates,pipes,andtubes.Mostoftheraw
materialsareprocuredfromoutsideIndia.
SincematerialsareorderedfromoutsideIndia,wecanappointfreightforwardersto
expeditethedelivery.CHA(CustomsHousingAgents)canalsohelpinclearingcustoms
formalities.Wemustalsoimproveoursourcingcapabilitiesandinvestigatealternate
vendorswithinIndia.Thesewillhelptoimprovethedeliverytimeandimproveefficiency.
Arethesefine?CanImovetothenextpart?
Yes,thesearegoodrecommendations.Youcanproceedtothenextpart.
Withinshopfloormanufacturing,wecanconcentrateonmanpowertrainingtoreduce
defects.OveralldefectsandtotaltimecanalsobereducedbyusingautomatedCNC
machinesinsteadofmanualwork/operatedmachinesusedforcutting,welding,and
bendingoperations.Arethesefine,oramImissinganything?
Theseseemfine,pleaseproceedtothenext.
Qualityassuranceandcontrolcanbeimprovedbyhavingstandardisedtestsandprocedures
forapprovalsandrejections.ThiswillhelptoimprovetheOTPofthequalityassurance
function.Isthisfineordoyouwantmetointosomethingelseaswell?
Thesearefine.Youcanskiptherestofthevalue-chain.Doyouhaveanyfurtherdigital
suggestionsfromyourend?
Ihavetriedmybesttocoverallthesuggestions,suchasautomation(whereverpossible)
anddevelopmentoftheERPplatform.Apartfromthese,asapartoforganizationdesign,
wecanincludehorizontalintegratorssuchasproject/productmanagerstoexpeditethe
cross-functionalactivities.
Thanks!Wecanendthecasehere.Allthebest!

141. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
141
•Boiler manufacturing company wants to increase its On-time Performance (OTP) by 25%.
•Operates in India.
•Some digital suggestions are also required.
•Main products are Boilers and
Heaters.
•Key customers are Shell, BP,
and Reliance.
•Client procures raw materials
such as steel plates, pipes,
and tubes. Most of the raw
materials are procured from
outside India.
Boiler manufacturing companyUnconventional | Moderate| Strategy& (Partner)
•Always specify the time (1 or 2 mins) in which you will get back to the interviewer if you are structuring your thoughts. This will allow them to follow up
and inform you if you are taking more than the time mentioned above.
•Structure your thoughts and try to get buy-in from your interviewer before proceeding with the case. This will help you know if you are in the right
direction for solvingthecase
ICON, IIM Bangalore
EngineeringIn-bound
logisticsProcurementShop Floor
Manufacturing
Quality
Assurance LogisticsDispatch
•Subcontract
work
•Hire more
manpower
•Use past
drawings as
reference
•Hire young
fresh talent
from good
colleges
•Use of ERP
platform
•Reverse
auctions and
use of
contracts to
put pressure
on the
vendors to
deliver on
time
•Use of
standardised
quality
procedures
for
approvals/
rejections
•Manpower
training to
reduce
defects
•Use of CNC
machines
instead of
manual
work/
operated
machines
•Use of freight
forwarders
•Use of CHA
(Customs
Housing
Agents)
•Improve
sourcing
capabilities
and
investigate
alternate
vendors
within India
•Reverse
auctions and
use of
contracts
•Appoint CHA,
freight
forwarders
based on
Incoterms
negotiated
with the
customer
•Ensure all
cranes and
lifts are
utilised
efficiently.
•Material
needs to be
dispatched
immediately
to avoid
blockage of
the shop
floor

142. 142
Football MatchUnconventional | Moderate | Strategy& (Manager)
ICON, IIM Bangalore
Recently,afootballclublostamatch.Theclubhashiredyoutofigureoutthereasonforthe
sameandsuggestsuitablesolutions.
Thankyouforthecase.Beforedivingintothecase,mayIaskafewpreliminaryquestions
aboutthesame?
Yes,proceed
Assumingthefootballclubisapartofaleague,whatisthestandingofourclub?Whether
thelossisaseasonphenomenon,i.e.,isourclublosingmostofitsmatchesthisseason?
Whatwasthegoaldifferenceforthematch?
Theclubisperformingwellthisseasonandiscurrentlyatthetopofthepointstable.The
finalscorelineofthematchwas3-0infavorofopponents.
Wastheopponentalsoamongthetopperformingclubs?Sincehomeadvantageis
importantinfootball,Iwouldliketoaskwhetherourclubwasplayingathomeoraway?
Theopponentstoodlastinthepointstable,andthiswasahomematchforourclub.Hence,
theclub’smanagerismoreworried.
Finally,dowehaveanydataaboutthepossessionofourclubduringthematch?Iamasking
thistounderstandwhethertheclubfailedtoscore,ortheydidn’tevengettheballtomake
aplay.
Theclubhada70%possessionduringthematch.
IthinkIhavemajorityoftheinformation.MayItake2minutestostructuremythoughts?
Sure,goahead.
Iwouldliketoclassifythereasonsforfailureasinternalandexternal.Internalreasonswill
berelatedtotheclub’splaying11andexternalreasonswillcoverthemedia,supportstaff
andmanagerofourclub.Dowehaveanydatawhichcanhelpinfindingwhetherthe
reasonwasinternalorexternal?
Youmayconsiderthattherearenoexternalissues.Theproblemiswithintheplaying11.
Dividingtheplaying11intogoal-keeper,defenders,mid-fieldersandstrikers.Wasthereany
specificdepartmentwhereourclublaggedorwasitacombinationofdepartments?
Theproblemwasmainlywiththestrikers.Theyweregettingmanygoalscoring
opportunitiesbutwereunabletoscoreagoal.
Theremightbethreereasonsforthisinefficiency.Sincetheclubwasplayingagainstateam
thatstoodatthebottomofthetable,theclubdecidedtogivechancetonewplayers.
Second,somestrikersmightbeinjured.Third,thestrikersmaybeoverworkedandfelt
fatigue.
Theclubplayedafull-strengthsquadandnoneoftheplayerscomplainedaboutfatigue.But
theopponentteamfouledourbeststrikerduringtheinitialminutesofthematch.The
problemwasthatthestrikerdidn’treportitandcontinuedtoplaythematch.Canyouthink
ofthereasonwhyhedidso?
Sinceitisaleague,theremightbesomeawardforthemaximumgoalscorerandourclub
wasplayingagainstaweakopponentso,thestrikerwouldhavesensedanopportunityto
increasehispersonalgoalstally.
Bingo,thiswasthemainreasonwhyhedidn’treporttheinjury.Canyousuggestsome
recommendationstheclubshouldtaketoavoidsuchinstancesinfuture?
Club’smanagershouldtalktoplayersimmediatelyandreiteratethattheteamgoalscome
beforeindividualgoals.Inalongerrun,themanagershouldtrytocreateahealthyculture
withintheteamandgiveassurancetoplayersabouttheirplaceintheteam.Theycanalso
appointdoctorsoruseIoTdevicestomonitorreal-timehealthofallplayers.
Thankyoufortherecommendations.Let’swrapupthecasehere.Thankyou!

143. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
143
A football club lost a match recently. You are hired to look at the key problem and suggest suitable measures to avoid such losses.
•Club is the table toppers
•Final score line: 3-0
•It was a home match
•Opponent was at bottom of
the table
•Our club had 70% possession
•MECE was very important in the first step. There might be problems that some players may feel media pressure
•Even if you are not familiar with football, divide the playing 11 into defenders and strikers.
•Knowing about opponent is a must. If the club lost to the second placed team, the problems could have entirely different
Football MatchUnconventional | Moderate | Strategy& (Manager)
ICON, IIM Bangalore
Reason for
loss
Internal to the
team
Goal KeeperDefenderMid-fielderStriker
New PlayersInjuryFatigue
External to
the team
Rival TeamOther external factors
(e.g. PESTEL)

144. 144
Women Driving in SaudiUnconventional | Challenging | Strategy& ME (Buddy)
Asyoumaybeaware,Saudigovernmentrecentlygrantedtherighttodrivetowomen.They
wantyoutoevaluatetheeconomicimpactofwomenstartingtodriveinSaudi.
Thankyou,That’ssoundlikeaninterestingcase!Couldyougivemeacoupleofsecondsto
structuremythoughts?
Sure,takeyourtime!
Thankyou!I’dliketoanalyzetheeconomicimpactofwomendrivingbyanalyzingeconomic
additionsaswellaseconomicsubtractionswhichwilloccurduetothisdecision.Doesthat
seemlikeafairapproachtoyou?
Definitely,pleaseproceed!
Alright,let’sstartbydiscussingtheeconomicadditionswecanexpectduetothisdecision.
I’dliketofurtherbreakadditionsintodirecteconomicaddsandindirecteconomicadds.
ShallImoveforwardwiththisstructure?
Yes,thismakessense.
Great,sofordirecteconomicadditions,I’dliketoanalyzetheincreaseinrevenuedueto
incrementalnumberofcarssold,driverlicensesissued,fuelusage,maintenanceservice
centers,parkinglotsandhighwaytolls.AsIunderstand,sincetherewillbeanincreasein
thepopulationeligiblefordriving,therewillbeadirectincreaseinthenumberofcars
boughtaswellasused.Furthermore,therewillbeincrementalrevenuefromissuingDLs,
higherfuelusage,higherusageofservicecenters,parkinglotsandhighways.Doesthis
seemexhaustiveenough?ShallImovetoestimatingtheseindividualincrements?
That’sexhaustive!No,Idon’twantyoutodoanycalculations.
Okay,inthatcase,let’smovetotheindirecteconomicadditions.Adecisionofthis
magnitudeisboundtotakeleapsinthedirectionofwomenempowermentandhenceI’d
furtherbreaktheindirecteconomicadditionsdownintotwosections.First,increasein
jobs/jobmarketsforwomenandsecond,increaseinthejobsforhouseholdhelp.
Mybaseassumptionhereisthatifwomengetmoreempoweredandstarttakingupjobs,
theirtraditionalrolesofcooking,cleaningetc.willstartgettingoutsourcedanddemandfor
house-helperswouldshootup.Doesthisseemlikeafairenoughanalysis?
Mostcertainly,let’smoveforwardtoeconomicsubtractions.
Sure.BeforeImoveforwardwiththeeconomicsubtractions,I’dliketoaskcertain
preliminaryquestions.Isitfairtoassumethatpriortothisdecision,mostwomenwould
eitherusetaxiservices,publictransportorhavechauffeurstodrivethemaround?
Yes,thosearefairassumptions!
Alright,inthatcase,I’dliketofurtherbreakdowneconomicsubtractionsintothreeparts–
shrinkinginthenumberofchauffeurs,shrinkingintheusageofpublictransportand
shrinkinginthetaxiservicemarket.Giventhatwomenwouldstartdrivingthemselves,
therewouldbeadecreaseddependenceontheabove-mentionedmeansoftransportation.
Doesthismakesense?
Definitely,I’dlikeyoutofocusfurtheronthedecreaseinthenumberofchauffeurscaused
bythisdeclaration
Sure,isitfairtoassumethatmostchauffeursinacountrylikeSaudiareexpatriatesor
immigrants?
Yes,that’safairassumption!
Alright,thisdecisionwoulddirectlyimpactthenumberofimmigrantsthatcometoSaudi.
ThiswouldmajorlyimpacttheVisaincomethegovernmentgenerates.Inadditiontothis,
therewillbeminoreconomicsubtractionssuchaslessspendingonentertainment,house
rents,foodetc.bythesaidimmigrants/expats.Wouldyoulikemeconsideranythingelse?
No,thatwouldbeall.Greatanalysis!Wecanclosethecasehere.
ICON, IIM Bangalore

145. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
145
•Client is Saudi Government (Kingdom)
•Evaluate the economic impact of women having the right to drive in Saudi
•No calculations to be done
•Taxis, public transport and
personal drivers were means
of transportation for women
prior to this decision
•Immigrants and expatriates
usually take up driving as their
profession
•Brownie points for having
general knowledge about
Saudi
•Owing to the unconventional nature of the case, taking a couple seconds to think about the case helped ensure a MECE approach
•Keep taking a buy-in from the interviewer to ensure you are on the right track and not missing out any important factors
•Since it is a conversational case, ensure that at every step your rational is clearly stated for the interviewer
Women Driving in SaudiUnconventional | Challenging | Strategy& ME (Buddy)
Economic Impact
Economic Additions
Direct Additions
No. of Cars Sold
Driving Licenses Issued
Fuel Usage
Maintenance Service
Centres
Parking Lots
Highway Tolls
Indirect Additions
Increase in jobs for
women
Increase in jobs for
house-helpers
Economic Subtractions
Shrinking in
Chauffeurs (drivers)
Visa Revenue
House Rent
Spend on Food
Spend on Entertainment
Shrinking in Taxi
Service usage
Shrinking in Public
Transport usage
ICON, IIM Bangalore

146. IIMB Guesstimates
2022-23
146ICON, IIM Bangalore

147. 147
Squash ballsGuesstimate | Easy | Bain (Buddy)
EstimatethenumberofsquashballssoldinIndia
Thankyoufortheproblemstatement,Iwouldliketoaskafewpreliminaryquestions.What
isthetimeframeweareconsidering?
Youcantakeover1year
Okay,sosquashballsgenerallyareof3types,singledot,doubledotandothers.For
simplicity,Iwillassumeauniformballforouranalysis.Doesthisassumptionseemfairto
you?
Yes.
IwouldstartwiththepopulationofIndiai.e.,130Cr,andsegmentthatintorural(70%=
91cr)andurban(30%=39Cr).Forsimplicity,Iwouldassumeonlytheurbanpopulationfor
myanalysis.Doesthisseemfair?
Yes.Youmayproceed.
Intheurbanpopulation,Iwouldliketodividethepopulationintoprofessional,casualand
nonplayerswiththefactthenonplayerswillnotberelevanttoouranalysis.Doesthisseem
reasonabletoyou?
Yes.
Assquashisnotaverycommonsport,wecanassumethatthenumberofprofessional
players(0.001%=3,900)andnumberofcasualplayerstobe0.05%~2,00,000.Dothese
numbersseemreasonable?
Yes,youmaygoahead.
Now,letusassumethatthenumberofgamesplayedbyprofessionalplayers(i.e2)inaday
be3.Also,theywouldhaveapracticecomponenttoitwhichcanbeestimatedtobe
equivalentto1game.Therefore,thenumberofgamesplayedinaweek(6daysofpractice)
wouldcomeouttobe4*6=24gamesforevery2professionalplayers.Translatingthisto
1year,weget,24*52*3900/2=24,33,600gamesperyear.Doesthecalculationseem
correct?
Yes,youcanproceed.
Okay,sowewillcalculateforcasualplayers.Forthem,wecantakethattheyplayon
average3gamesaweekwhichtranslatesto156gamesforevery2players,therefore,total
numberofgamesplayed=156*1,00,000=1,56,00,000.Thus,thetotalnumberofgames
playedwouldbeequalto1,56,00,000+24,33,600=1,80,33,600games.Doesthisnumber
seemfine?
Yes,youcanproceedwiththisnumber
Now,generally1squashballcanlastforcloseto30games.Thus,thetotalnumberofnew
ballsneededwouldbethetotalnumberofgamesby30whichcomputestobe6,01,120or
roughly6Lballs.Doesthisnumberseemfinetoyou?
Yes,thatseemstobeafairnumber.Wecanwrapuptheguesstimatehere.
ICON, IIM Bangalore

148. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
148
•Number of squash balls sales in 1 year
•Population of India = 130 cr
•Break down into rural (70%)–
urban (30%), further segment
into professional and un-
professional and based on the
number of games played and
the average life of 1 ball, we
can estimate the sales of
squash balls.
•Compute the total number of
games played in 1 year and
divide by the life of a ball (30
games = 1 ball)
•1 game will require 2 players
•Keep the framework easy and take buy ins from the interviewer
•Ensure there are no calculation mistakes
Guesstimate | Easy | Bain (Buddy)Squash balls
Population
RuralUrban
Professional
(0.001% = 3,900)
Number games
per week = 24
Casual (0.05% =
2,00,000)
Number of games
per week = 3
Non player
ICON, IIM Bangalore

149. 149
Fantasy Sports AppGuesstimate | Challenging | Bain (Partner)
CanyouestimatethetotalpotentialmarketsizeforafantasysportsappinIndia?Following
which,canyoualsolistdownafewpotentialriskstosuchanapplication?
Sure.CanIbeginbyaskingafewclarifyingpreliminaryquestions?
GoAhead.
Justwantedtoclarifythatby‘fantasysportsapp’,doyoumeanappslikeDream11?
Precisely,youcantakeDream11asyourbenchmarkforthefurtherprocessifyouwant.
Gotit.IalsowantedtoclarifythebusinessmodelofDream11.Iknowforafactthatinsuch
apps,thereisasmallupfrontfeedemandedforenteringacontest/event,whichrequires
selectingplayers&makingateamforwhichpoints,whichcanlaterbeconvertedtomoney,
willbeawardedbasedontheperformanceoftheteaminrealmatches.Isthatcorrect?
Yes,absolutelycorrect.Dream11hasvarioussportingeventsforwhichcontestsare
conducted,basedonrealmatchevents.Forouranalysis,let’sjustconsidercricketmatches.
Sure,understood.Finally,Ijustwantedtoknowifwehaveanyinformationregardingentry
feesforamatchorthepotmoney?Also,onwhatfactorshouldthemarketsizebefound?
Hmm…let’sjustfocusnowonthevariousfactorsyouwillconsiderformarketsizing.Wecan
incorporatetheentryfeescostatalaterstage.
Also,let’sfindthepotentialmarketsizebasedonnumberofgameentriesperday.
Ok,soundsgood.IwillbeginmyanalysisbydividingIndia’spopulationonurban-ruralbasis.
Outofatotalpopulationof1.2billion,about1/3rdresideinurbanareasandtherestinrural
areas.Iwillbeconsideringtheurbanpopulationonlyformyanalysis.Isthatappropriate?
Yes,that’salright.Youcanproceedahead.
Sure.Next,Iwillbelookingintothesmartphone&mobileinternetpenetrationinurban
India.Thiswoulddependondifferentincomeclassesaswellasage&gendercategories.
Interestinganalysis.Let’sassumethesmartphoneandmobileinternetpenetrationtobe
100%.Canyouinvestigatetheotherfactors?
Alright.ForanapplikeDream11,onlythoseincomecategorieswhichcanaffordtopaythe
entryfeewillbewillingtoplaythegame,inadditiontodeterminingthefrequencyof
enteringacompetition.Additionally,onlyspecificagegroupsliketeensandyoung-adults
willbemoreinclinedtocompeteintheseeventandevenamongthese,alargerproportion
ofmaleswillcompetethanfemales.
Fairenough.Canyougetintoalittledetailastohowwillyouanalyseintotheincome
segmentsandincorporateitintotheanalysis?Let’sconsiderthecostofenteringagameto
beINR200.
Forthis,IwouldconsidertheaveragecostofsigninguptoacontestonDream11(givenas
INR200)andcompareitwithsavingsofanaveragefamily,computedonasingledaybasis,
whichwillbecalculatedasapercentageofmonthlyincomeofthefamily.Basedontheratio
ofentrycosttothedailysavingsamount,Iwouldqualitativelydeterminethefrequency
(no.ofgamesplayedperday).Belowisthetableexplainingthisprocess:-
Anotherfactortoconsiderintheabovestepsisthewinningpotmoney,whichwillalso
influencethefrequencyofenteringgames.Icanincorporatethattooifyouwant.
Income
Segment
(Urban areas)
Avg. Monthly
Income (INR)
Savings as a % of daily
income
(1month = 30 days)
Daily frequency of
entering a contest
Lower & Lower
Middle20k=133 (20% of
income/30)0.2
Middle50k=500 (30% of
income/30)0.6
Upper Middle
& Upper1L=1300 (40% of
income/30)1.2
ICON, IIM Bangalore

150. 150
Fantasy Sports AppGuesstimate | Challenging | Bain (Partner)
No,that’sallright.Canyounowhaveaquickquantitativelookintohowmanytarget
individualscanbethereforDream11?
Alright,soasImentionedbefore,IwillbelookingintourbanIndiaandfactoringitonthe
basisofincome,age-groupsandgender.IwillbetakingthebasetobeurbanIndia’s
population(1/3of1.2B=400M)
Wegetapotentialmarketsizeofnearly41milliongameentriesinaday.
Great.Ithinkwearedonewiththemarketsizingpart.Canyoulookintosomefactorsthat
candrivethemarketsizeup?
Sure.Someofthewaystoincreasepotentialmarketsizeincludes–promotingtheappin
rurallocations,decreasingofthecontests/evententryfees,increasingthewinningmoney
pot,addingmoresports/eventsavailableascompetition.
Niceideas.Couldwealsoquicklylookintosomerisksforfantasysportsapps?
Absolutely.Somerisksassociatedwiththeappincludethenegativeperceptionsurrounding
onlinemoney-makingappsinIndiansociety,appusageduringoff-season(forex.,during
cricketcalendar'sleanperiod).Additionally,recentcourtcasesfiledtodeclaresuchappsas
‘bettingplatforms’andsubsequentlybanthem,canalsonegativelyaffecttheirimage.
Great.Thatwouldbeallfromourside.Thankyou.
Income ClassPopulationTarget age group as a % of
total populationGender factorCost-free potential target
market
Frequency factor
(done before)
Total daily potential
target market
Lower=160M (40%)
=15-35 age group (25% of total
population)
100% M, 0% F=20M (160M*0.25*0.5)0.2=10M (0.2*20M)
Middle =160M (40%)100% M, 20% F=24M (160M*0.25*0.6)0.6=14.4M
(0.6*24M)
Upper=80M (20%)100%M, 40% F=14M (80M*0.25*0.7)1.2=16.8M (1.2*14M)
ICON, IIM Bangalore

151. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
151
•A fantasy sports app (such as Dream 11) which wants to determine its potential market size
•Also need to investigate factors that can drive-up the market size and risks associated with the same
•Understand the business
model of fantasy sports apps,
especially the concepts of
entry fees and winning money
•Use top-down approach, start
from national population and
then apply filters in a nested
manner –urban-rural,
smartphones, internet,
income group, age group and
finally gender.
•Using the concept of savings
for different income
categories and comparing it
with the entry fees for
estimating playing frequency
is a very important step.
•Understanding that such apps will primarily be used by the youth in urban areas
•Comparing savings with entry fees & pot money value is a very useful method to find out the frequency of entering an event across income categories
•Keeping up to date on news helps in understanding potential risks associated with such apps, such as recent court rulings on Dream 11.
Fantasy Sports AppGuesstimate | Challenging | Bain (Partner)
Population
Rural : 2/3Urban : 1/3
0-15 : 15%
15-35 : 25%
35-60 : 50%
60+ : 10%
Average monthly incomes per person
Lower class : 20k
Savings Rate :
20%
Middle class : 50k
Savings Rate :
30%
Upper class : 1
lakh
Savings Rate :
40%
ICON, IIM Bangalore

152. 152
EV Market in IndiaGuesstimate| Moderate | McKinsey (Partner)
YourclientisanautomobilemanufacturingcompanyandwantstoenterEVmarketinIndia
innext2-3years.TheyhaveapproachedyoutoestimateEVmarketdemandofIndiain
2025.Pleasehelpthemindoingthis.
Okay,IhaveapreliminaryquestionbeforeIbeginsolvingthis.Whenourclientistalking
aboutEVindustry,dotheyhaveanyspecificvehiclesegmentinmindlike2-wheeler,4-
wheelerpassengercarsorcommercialvehicles?
Let’sfocusonlyon4wheelerpassengercarsmarket.
Okay,Iwouldliketostatemyapproachfirst.Iwillfirstestimatethenumberofcarssoldin
Indiain2022.Iwillfurtherprojectthisnumberto2025,dividecarssoldintodifferent
categoriesandapplyaEVmarketpenetrationmultiplierby2025toeachofthosecategories
andgetafinalnumber.
Okay,yourapproachsoundsgood.WhatdoyouthinkisthenumberofcarssoldinIndiain
2022?Aroughnumberwillworksodoaquickcalculation.
Forthis,IwillstartwillpopulationofIndiawhich140crores.Takingaveragefamilysizeof4,
thisgivenumberoffamiliestobe35crores.SinceIndiaisstilladevelopingmarketfor4
wheelerpassengercars,Iwillsayaround1%offamiliesbuycareveryyear,whichgivesan
estimateof35Lcarssoldinthisyear.
Okay,soundgood.Nowgoaheadwithyourapproach.
Okay,taking5%CAGRgrowthrateoftheautomobilemarket,Iestimate4Wpassengercars
marketin2025togrowtoapprox.40Lakhs. 35*(1.05)^3).NowIwouldliketodividethis
marketbroadlyin3categoriesonthebasisofcarprice–1)economyandaffordablesedan,
2)middlerangeSUVsand3)premiumluxurycarssegment.SinceIndianmarketsellsmostly
economysegmentcarsandluxurycarsarefarandfew,Iestimatethepercentmarketshare
ofthese3carcategoriestobe70%,25%and5%respectively.Isthisafairestimate?
Yes,thesenumberslooksokay.WhatdoyouthinktheEVmarketpenetrationofeachof
these3segmentswillbeinnext3years?
Okay,giventheoverallEVmarketpenetrationisverylowcurrently(lessthan2%),Iexpect
thesenumberstoincreasegiventheinfrastructureandacceptabilityofEVcarsisgrowing.
Wecanassumethatforeconomysegment,EVpenetrationwillincreaseto20%asEVcars
willbecomemorefuelefficientandaffordablewithimprovingbatterytechnology,forluxury
segment,thisnumberwillremainlowtoaround5%asnotmuchinvestmentsare
happeninginthishigh-endspace,alsopeoplearelookingforstyleandcomfortinthis
segmentratherthanfuelefficiencywhichisdifficulttoemulateinshortspanoftime.For
midrangeSUVsegment,Iwilltake10%penetration,asanumberinbetweenthese2
categories.So,thenumberofEVsoldin2025willbe6.7Lakhsunits.
Okay,thesefigureslooksokay.Howwillyouverifythatthesearecorrectnumbers?You
don’tneedtodoexactcalculations,explainthisqualitatively.
Toverifythecorrectnessofthesenumbers,wecantakebenchmarkingagainstother
countrieswhereEVmarketismoredevelopedthanIndialikeChinaandUSA.Wecansee
howEVcars’marketsharegrewindifferentcategoriesinthesecountriesinpast2-3years
andcheckifourassumptionsarereasonable.Whiledoingthisanalysis,wewillhavetobe
carefulaboutthedifferenceincategorydistributionandpurchasingpowernumbersand
makesuitableadjustmentsincalculations.
Great,nowthatyouhaveestimatedthesenumbers,giveme3-4factorswhichcan
increase/decreasethisnumber.
Okay,Iwouldliketofirstdividemyanswerin2bucketsnamelyindustrylevelfactorsand
externalfactorsandlistcoupleofpointsundereachbucket.Underindustryfactors–1)If
theindustryisabletoagreeonandset‘EVstandards’inpracticeforbatterychargingand
replacement,roadsidecharginginfrastructurewillbebebuiltatafasterpaceandelectric
adoptionwillincrease.2)Investmentsinbatterytechnologybyautomobilecompaniesto
reduceapprehensionslikehigh-upfrontcosts,rangeanxiety,heatingandchargingissueswill
increaseEVpenetration.
ICON, IIM Bangalore

153. 153
EV Market in IndiaGuesstimate| Moderate | McKinsey (Partner)
Movingontoexternalfactors–1)Ifthegovernmentdecidestopushforcleanervehiclesto
meetits45%reductionincarbonemissionsby2030goal,itmayprovidemoreincentivesto
buyEVsbyincreasingsubsidies,whichcanresultinahighernumberthantheestimate.2)
Wehavetokeepcognizanceofeconomicalfactorsinourcalculation,sinceinflationisona
risegloballyandmanyexpertsarepredictingarecessionin2023.ThiscanaffectIndiaas
wellandcarsselltakeamajorhitinrecessionaryenvironment.So,thiscanleadto
reductioninourcalculatednumbers.
Verygood,youranalysiswasgoodandsuccinct.Wecanclosethecasenow.
ICON, IIM Bangalore

154. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
Factors which can
increase/decrease EV
Industry related
factors
External Factors
(PESTEL)
154
•Estimate 4-wheeler passenger EV cars market in India in year 2025
•Identify factors which can lead to a positive/negative change in the estimated EV market
•In EV markets, penetration
will be different across
different car categories.
•After estimating any number,
its always a good idea to
benchmark and do a sanity
check.
•Try to show your general
knowledge in answers by
giving example whenever you
are making assumptions on
market share, penetration etc.
•Rather than starting every guesstimate with population, you can think of a closest data that is easy to estimate. For example, Ichose number of cars sold in current year as a starting point in this case.
•Be succinct in you answers when asked about factors that can increase/decrease any number. First write your answer in the form of framework, then pick 2-3 points out of it and answer briefly.
•Ask clarifying questions in the beginning to know what exactly is meant by EV market and which vehicle segment is our client focused on in India.
EV Market in IndiaGuesstimate| Moderate |McKinsey (Partner)
No. of 4-W
passenger cars in
2025 (40 L)
Economy segment
( 70%)
Mid-range SUVs
(25%)
Luxury Cars
(5%)
40*0.7*0.2 =
5.6 L
EV Penetration multiplier20%10%5%
40*0.25*0.1 =
1 L
40*0.05*0.05 =
0.1 L
6.7 Lakhs
No. of 4-W
passenger
cars in 2022
140 Cr
Population
÷4
35 Cr Families
1% buy car each year
35 L cars sold
in 2022
5% CAGR growth
Benchmarking against other markets
ICON, IIM Bangalore

155. Snow Melting LiquidGuesstimate | Moderate | McKinsey (Buddy)
OurclienthasinventedanewSnowMeltingLiquidChemicalandweneedtoestimatethe
amountofannualconsumptiontogetatotaladdressablemarket.
IhaveafewpreliminaryquestionsbeforeIjumpintotheguesstimate,whereexactlyisthe
liquidusedandwhichgeographyarewetalkingabout?
Thechemicalisusedtomeltaccumulatedsnow.WewouldliketolookatUS.
Sure,I’lltakeaminutetocomeupwithanoverallapproach.
Sure.
So,thewayI’dliketoestimatethisisbasedon1sttheamountofsnowthatneedstobe
meltedmultipliedbyamountofchemicalneededperunitsnow.Foramountofsnow,I
believethischemicalwillnotbeusedforsmalleramountsofsnowfall,butonlywhenwe
seeacertainsignificantamountofsnowfallhappen.So,wewouldseehowmanydayson
anaverageinwintermonthsexperiencesuchheavysnowfall,andtheinchesofsnowthat
needtobemeltedmultipliedbytheshareofareainUSexperiencingheavysnowfall.There
wouldalsobethefactorofpercentageofareawheresnowneedstobemeltedasalotof
areawillbebuildingsoruninhabitedandwouldnotrequiremeltingsnow.Doesthatsound
ok?
Thatsoundslikeagoodapproach.Let’scalculatethis.
Sure.IamnotawareoftheareaofUS.Iwouldguessitisaboutthreetimestheareaof
India.ForestimatingtheareaofIndia,Isaywehaveanapproximatekiteorrhombusshape
withN-SandE-Wlinesasdiagonals.ForN-Sdistance,I’veflownfromDelhitoMumbaiin
~2hoursandwithaspeedof500km/hrforanairplane,thatisapproximately1000Km.This
shouldbeaboutone-thirdtheN-SdistancebetweentopofJ&KandKanyakumariinthe
south.TheflightfromMumbaitoKolkatawasabout3hours.TheE-Wdistancewouldbe
1.5timesthis.Hence,wehavediagonalsofapproximately3000Kmand2200Km.Thisgives
areaofIndiaas(1/2)*3000*2200=3.3Mnsq.Km.AreaofUS=10Mnsq.Km.I’dsayabout
2-3rdofUSexperiencesheavysnowfall,isthatcorrect?Also,I’mnotsurewhatamountof
snowwarrantstheuseofchemicalandhowoftenthatmuchsnowfallwouldhappen.
Letmehelpyouwithsomedatahere.Youcouldassume60%oftheareaofUSwhere
chemicalwillbeused,thisincludesyourareabyclimaticconditionsandinhabitedarea.
10mLofchemicalisusedtomelt1cubicmeterofsnowanditstypicallyusedfordays
experiencingsnowfallover50cmwhichisabout40daysintheyear.
Sure.So,thisgivesusabout1400billionlitresofchemicalasthetotaladdressablemarket
forthechemicalonanannualbasis.(Calculationsinchartonnextpage).Isthereanything
elseyou’dlikemetoconsider.
Thatsoundscomprehensive.Wecanclosethecasenow.
Thankyou!

156. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
156
•Estimate the amount of Snow Melting Liquid Chemical used annually
•US area ~ 3x India
•Snow melting chemical used
40 days in an year when
snowfall > 50 cm
•% area where chemical
required x %area experiencing snowfall x %area where snow
needs to be melted
Snow Melting LiquidGuesstimate | Moderate | McKinsey (Buddy)
•Use proxy and ask for more information when not aware of geographic or any other specifics.
•Assumptions like “chemical not being used for smaller amounts of snowfall” are good for brownie points, but always take interviewers buy-in for such
assumptions.
ICON, IIM Bangalore
Required
Answer:
1200 Bn Litres
per Year
Area of US
10Mn sq Km
Area of India
3.3 Mn sq Km
1/2N-S distance
(3000 km)
E-W distance
(2200 km)
3
% area where
chemical
required
60%
Product per unit
Snow
10mL per m3of
snow
# Days in yr
when chemical
is reqd. = 40
Snowfall
50 cm
6Mn * (Sq. km = 106sq.m) x 0.5 m = (3 x106) Mn m3

157. 157
Tennis Balls Consumption
Estimatequalitatively,thetotalnumberoftennisballssoldperyearinBangalore
Toestimatethatfigure,wecantake2approaches,supply-sideordemand-side.Canwego
aheadwiththedemand-sideestimation?
Whynotestimatefromthesupplyside?
Fromthesupply-side,therearemultiplevariablessuchasthevariousbrands,pricerange,
varyingqualityofthetennisballsaccordingtobrandsandproductofferings.Also,
productionoftennisballstakesplaceatvariouslocationsfromwhichtheyareexportedto
Bangalore,whichisrelativedifficulttoaccuratelyestimate.
Ok,goaheadwiththedemandbasedapproach.
Wecanestimatethenumberoftennisballssoldbyfirstestimatingthenumberoftennis
matchesplayedperyearanddividingitwiththelifeofatennisball.
Butfirst,whatarethevarioususesoftennisballs?
Yeah,soapartfromtennis,tennisballsarealsousedforplayingstreetcricketandalsoused
asaplaytoyfordogs.Wecantakeasimilarapproachtoestimateforcricketandpetuses.
Thatsoundsgreat,let’sfocusontennismatchesfirst.
Todecideonthenumberofmatchesplayed,wefirstdividethetypeofmatchesas
amateursandprofessionalmatches.Professionalmatchesinvolveofficiallyregulated
matches,playedbyprofessionalplayers,whileamateursarethosewhoplayasahobby.
Howwillyoudifferentiateprofessionalplayersfromamateursonpaper?
Thereare3waysbywhichwecanidentifyprofessionalplayersapartfromamateurs.
1.Checkwhethertheplayersareregisteredwiththeofficialtennisassociationof
Karnatakaand/orIndia.
2.Checkthestatisticssuchasnumberofaces,totalpoints,faults,etc.ofallmatches
played.
3.Checkthefrequencyofmatchesplayedperastandardtimeperiod(week/month/year)
Howwouldyouproceedwiththefrequencyofmatchesplayed?
Professionalplayersplayatleastthriceaweek,whileamateursplayonlyduringtheweekends,
soamaximumoftwiceaweek.Basedonthisestimate,wecancalculatethenumberof
matchesplayedperweekandextrapolateittoayear.Thenestimatingtheaveragelifeofa
tennisball,wecanarriveatthenumberoftennisballssoldperyearinBangalore
Good.Nowfocusonthedemandfromcricket.
Wecantakeasimilarapproachbyestimatingthenumberofcricketmatchesplayedand
dividingitbytheaveragelifeofatennisballTennisballispredominantlyusedforstreet
cricket,i.e.,cricketthatisplayedbyenthusiastsandamateurs.Wecanignoreprofessional
matchessincetheyareplayedwithaleathercorkball.
Ok,howdoesthelifeofatennisballforcricketmatchdifferfromthatofatennismatch?
Whilefortennismatches,thelifeofaballisdeterminedbytheaveragetimetakenfortheball
toloseitsbounceandsurfacepropertiesduetowearandtear,butforcricketmatches,along
withthesamereasonofwearandtear,thereisalsothepossibilityoftheballgettingtornor
gettinglost.Consideringthesereasonsintoaccount,wecancalculateadifferentlifespanfor
tennisballsusedforcricketmatches.
Thanks,wecanconcludethecasehere.
Guesstimate| Moderate| Strategy& (Director)
ICON, IIM Bangalore

158. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
158
•A qualitative guesstimate for the number of tennis balls sold per year in Bangalore
•Chose demand-based
approach rather than supply-
based approach
•Number of tennis balls sold =
(Number of tennis matches
played / Average life of tennis
ball) + (Number of street
cricket matches played /
Average life of tennis ball for
cricket)
•Number of tennis matches
played = Number of
(Professional + Amateur)
matches played
•Frequency of matches:
professional = 3-7 times a
week, amateur <= 2 times a
week.
•The interviewer was more focussed on the approach taken rather than using quantitative data to arrive at the actual estimate.
•It is better to ensure that problem is broken down exhaustively at each step.
Tennis Balls ConsumptionGuesstimate| Moderate| Strategy& (Director)
Number of tennis balls sold per year in Bangalore
Tennis CricketPets
ProfessionalAmateursStreet cricketProfessional cricket
Number of tennis balls used
Frequency 3 to 7
matches per week
Life of tennis ball: until wear and tear
leads to damage
Frequency less than 3
matches per week
Life of tennis ball:
1.until wear and tear leads to damage
2.ball gets torn
3.ball gets lost
ICON, IIM Bangalore

159. 159
Global Aircrafts Guesstimate | Moderate| BCG (Partner)
Estimatethenumberofaircraftsintheairatthismoment.
ThissoundsInteresting.Beforejumpingintotheguesstimate,Iwouldliketoclarifyafew
aspectsofthecase.ByaircraftsshouldIconsidercommercial,military,cargo,personaletc.
Planes?ShouldIfocusonaircraftsflyingglobally?CanIlookatitfromasupplysidelens?
Greatobservations.Youcanfocusoncommercialplanesflyingworldwide.
Theworldhas7continentsandapproximately10,000citiesinit.Iwilllookattier1and2
citiesformyanalysisandfurtherclassifytypesofairportsintobig,mediumandsmall.Iwill
thenestimatenumberofflightsinairaccordingtotheequation=No.ofairports*No.of
runwaysperairport*No.ofplanesflyinginaday.Iwillthenestimateflightsintheairatany
momentbydividingno.ofplanesbynumberoftimesaplanleavesorlandsontherunway.
Iwillbasemyanalysistopre-coviderawithnotravelbans.Doesthisapproachseemviable?
Yes,alltheassumptionsseemfair.Youcanproceed.
Tocalculatethenumberofairportsintheworld,Iwilllimitmyscopetodevelopedand
somedevelopingnationsandtakeabout~30%oftheworldwithanaverageof3000cities
(tier1and2)or~50countriesapproximatelyintheworldthathaveairportswith100%
utilization.Furtherthesecountrieshavecloseto6big,25mediumand45smallairports.Is
thisafeasibleassumption?
Yes,yourunderstandingiscorrect.Goahead.
Iamassumingthebig,mediumandsmallairportstohave4,3and2runwaysrespectively.
Sototalnumberofrunwaysis6*4+25*3+45*2=189runways.CanIgoaheadwiththis?
Youareontherighttrack.Keepgoing.
Thereisahugevariationbetweennumberofairplanesdependingonthetimeoftheday.Is
itokaytoassumepeakhoursfromto9amto9pmforeaseofcalculation?Also,inpeak
hourscanIassumeplanestakeoffevery10minutesVs.20minutesduringthenon-peak
hours?Thatgivesme6and3planesperhourduringpeakandnon-peakhoursrespectively
andIobtaintotalno.offlightsas6*12+3*12=108.
Prettyaccurateestimate.Howwillyougoaboutestimatingflightsintheairatthemoment?
Iwillfirstcalculatetotalno.offlightsflyinginadayfromallairportsintheworldasperthe
equation(no.ofrunways)*(flightsonpeakdays+flightsonnon-peakdays).CanItakefew
secondstocalculate?
Sure,goahead.
Forallcountriesunderconsiderationthetotalnumberofflightsinadaycomesouttobe~6
Lacs.Onewaytocalculatenumberofflightsatanymomentistoconsiderdomesticflight
avg.durationtobe1.5hoursandInternationalflightavg.durationtobe3.5hoursand
obtainatotalaveragedurationof2.5hours.So,forentiredayitwillbeequalto24/2.5=
approximately10instanceswheretheflightiseitherlandingorflyingfromtherunway.To
obtainavg.no.offlightsinaircurrentlyIwilldivideno.offlightsinadayby10.Doesthis
seemcorrectoramImissingsomething?
Interesting.Whatisthefinalfigure?
AtanypointintimeFlightsareeitherlanding,flyingorareheldinthehangar/track.Soone-
thirdwillbeflying.Henceresultis~20000flights.IfIfactorinforclimaticandtraffic
conditionsandtakeabout80%oftheseendupflying,Iwillobtain~16000flights.
GreatJob.Canyouquicklyestimatenumberofpassengersintheseflights?
ToarriveatthisIwillmultiplyno.offlights*seatsperflight*occupancyrate
Sure.Goodapproach.
CanIassumeanaveragefigureof115seatsinaBoeing-Airbusplaneandoccupancyrateon
anaveragetobe70%?
Yes,youcanworkwiththat.
Totalnumberofpassengersinacommercialflightonairatanypointintimegloballyis
115*0.7*16000=approx.13Lacs.
Thankyou.Ithinkthisisacomprehensiveanalysiscoveringallaspects.Alltheverybest!
ICON, IIM Bangalore

160. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
160
•Estimate the number of aircrafts in the air at this moment
•Scope of estimate global
•Exclude under-developed
countries
•6 big, 25 medium and 45
small airportsin a country
•Airport Peak hours from 9 AM
to 9 PM
•Domestic flight average
duration 1.5 hours
•International flight average
duration 3.5 hours
•At any point flight either lands
or takes off from the runway
•Average occupancy rate of
flight 70%
•It was tricky to estimate number of flights at any point in time, Interviewer was looking for the correct approach instead ofaccurate numbers.
•Deciding on solving the case from supply/demand side analysis helps in robust structuring and later helps in sanity check using the other side.
•Do not hesitate to ask as many preliminary questions as possible to avoid obtaining a wrong estimate.
Global Aircrafts Guesstimate | Moderate| BCG (Partner)
=
Number of
flights
Capacity of
Flight
Occupancy
rate %
Number of
passengers
No. of runways /
airportNo. of planes / dayTotal planes per dayNo. of airports
BigMediumSmallNo. of planes in
peak hours
No. of planes in non-
peak hours
=
Total peak hours in a
day*60/fly
behaviour
Total non peak hours
in a day*60/fly
behaviour
ICON, IIM Bangalore

161. 161
Perfume RetailerGuesstimate | Challenging | AuctusAdvisors (Manager)
Youaretheownerofaretailoutletwhichsellsluxuryperfume.Howdoyouplanthe
inventoryforthisperfume?
Justtoconfirmmyunderstandingwearearetailerwhojustresellsthebrandedperfume
throughourretailoutlets.Obviously,ourprimaryobjectiveisreducingthedifferentkindof
inventorycostandbemoreprofitable.
Exactly,whatallkindsofinventorycostscanyouthinkof?
Thereisfixedmaterialcostwhichischargedirrespectiveontheamountofinventory
ordered,apartfromthattheremightbeanorderingcost,opportunitycostofcapital
blockedininventory,warehouseandinspectioncost.
Soundsgood,let’sgoaheadandfindouttheoptimalinventory.
Sincethisisnotahighdemandgood,oneoptionistouseperiodicorderinventorysystem,
wherewefindtheoptimaltimetoplaceanorderusingEOQ(Economicorderquantity)
modelandbasedontheservicelevelrequiredwecanfindthecorrectquantitytoorder.
Let’stakeastepback,canyoutellmewhatarethecomponentsofinventoryplanning?
Inmyopinioninventoryplanningmeans,whatistheamountofinventorytoorderand
whentoorder.Sobasically,wearetryingtoanswerwhenandhowfortheinventory.AmI
missingsomething?
Soundperfect,soletmegiveyousomemoreinformationregardingtheplanning
parameters.Wecanorderperfumesonlyatthebeginningoftheyearandperfumesgoout
oftrendinnextyearandcannotbesold.Beforewegoaheadcanyoutellmewhatallcan
wedowiththeunsoldperfume?
Nextyearwecanselltheperfumeonsaleorthroughothermarketingcampaigns.
Youdounderstandthatthisisaluxurybrandsoisrunningsalesanddiscountonthese
perfumesagoodidea?
Yes,youarerightitwillhamperthebrandimageoftheluxurybrand,soanotheroptionisto
returnitbacktothemanufacturer,isthatapossibleoption?
Yesthat’spossible.Nowhowwillyouarriveattheoptimalquantitytoorder?
Sure,wecanusethenewsvendormodeltoarriveattheoptimalquantitytobeordered.Do
wehaveanydataoncoststructureandpriceoftheproduct?Also,wewillneed
distributionofdemand,assumingit’snormaldistributioncanyoutellmethemeanand
standarddeviationofthedemand.
TheperfumecostsusRs.80,andwesellitatRs.150.Asperthecontractwith
manufactureranyunsoldperfumeistakenbackatRs.50after1year.Themarketing
departmenthasestimatedthatdemandisnotnormalandthereis20%chancethat
demandis1000,50%chancethatdemandis1500and30%chancethatdemandis2000.
Havingadiscretedemandmakestheproblemeasier,nowwetheoptimalquantitytoorder
iseitherof1000,1500or2000.Foreachofthecasewecanfindexpectedprofitandchoose
theonewithhighestexpectedprofit.Doestheapproachsoundfinetoyou?
Yes,thislooksgreatpleasegoaheadwiththecalculations.
Scenario1(1000):1000*(150-80)=70K,Scenario2(1500):1500*(150-80)*0.8+1000*
70*0.2-500*30*0.2=95K,Scenario3(2000):2000*(150-80)*0.3+1500*70*0.5–
500*30*0.5+1000*70*0.2–1000*30*0.2=95K.Sincescenario2andscenario3bothgive
highestprofitthatis95Kwecangowitheitherofthem.
Ok,ifIforceyoutochooseeitheroneofthemwhichonewillyouchoose?
IIwillchoose3rdoptionthatisorder2000aswedon’twanttolooseourcustomerstoother
retailersasretailingisahighlycompetitivebusiness.
Thankyou!wecanclosethecasenow.
ICON, IIM Bangalore

162. Structure/ FrameworkInterviewee Notes
Case Statement
Key Takeaways
162
•Inventory planning for a retailer who sells luxury perfume
•Plan inventory such that
different kinds of inventory
costs are reduced.
•Planning horizon is 1 year.
•Order can be made only at the
beginning of the year.
•Unsold perfume is returned to
the supplier at a loss of Rs. 30.
•Selling the perfume earns
Rs.70.
•Demand pattern for the
upcoming year is given.
•This case can be solved without any knowledge of inventory planning models. It was a simple probability based case.
•More clarifying question like planning horizon should be asked before moving into solution.
•Case could have been structured from beginning.
Perfume RetailerGuesstimate | Challenging | AuctusAdvisors (Manager)
ICON, IIM Bangalore
Inventory
Planning
When to order?
Beginning of the
year
How much to
order?
Understocking
(Shortfall)
Lost Revenue
At-par with
Demand
Overstocking
(Leftover
Inventory)
Loss on Unsold
Product

163. IIMB Industry Reports
2022-23
163ICON, IIM Bangalore

164. 164ICON, IIM Bangalore
•Robust Demand: Rising working group and widening
middle class demography is expected to boost demand
•Opportunities in MRO: Expenditure in Maintenance,
Repair & Overhaul (MRO) accounts for 12-15% of the total
revenues –it is the second-highest expense after fuel cost.
By 2031, the MRO industry is likely to grow over $4 billion
from $1.7B in 2021
•Policy Support: Foreign investment up to 49% is allowed
under the automatic route. Under Union Budget 2021-22,
the government lowered the custom duty from 2.5% to 0%
on components or parts, including engines, for
manufacturing of aircrafts by the MoD.
•Increasing Investments: Investment to the tune of INR
420-450 billion is expected in India’s airport infrastructure
in the next 3 years
•UDAN: Under this regional connectivity scheme, airfare for
a one-hour journey of 500 km has been capped at INR
2500
•Public-Private Partnerships: $3 billion investment in
greenfield airports in Navi Mumbai and Goa
Market Trends (elaborate data/points)Key Drivers
RevenueCostGrowth
Passenger tickets,
inflight salesAviation fuel (40%)
Post-COVID
trade and
tourism
Freight services,
other VAS
Equipment rentals,
hangar cost (15%)
Rising
disposable
incomes
Tours and packagesMaintenance and
overhaul (10%)
Government
policies
Industry Dynamics
Key Customer SegmentGrowth
Passenger -Domestic11-12%
Passenger -International9-10%
Freight7-8%
•Highfuelprices–accountfor40%ofcosts
•Governmentpoliciesandinterferencetokeep
acapontheticketprices
•Growingclimatechangeawarenessleadingto
lesserdemand
•PostCOVIDtravelhesitationincertain
sectionsofthesociety
•Financing-Highcapex,opexindustry
Industry Challenges
•SupplierPower:(High).Aircraftandengineproducersare
concentratedoligopolies
•BarrierstoEntry:High.HighCAPEX,costintensiveand
needforeconomiesofscale.
•ThreatofSubstitutes:(Medium)FastTrains,Video
conferencingreducingneedforbusinesstraveletc.
•BuyerPower:(High)Lowswitchingcostsformost
customerssincerelativelystandardizedservice
•Rivalry:(High)Limiteddifferentiationandopportunities
foreconomiesofscale
Industry Forces
Airlines Industry
IndustryReports
•IBEFReport
•InvestIndiaReport
Useful Links/Reports
•Route Selection
•Yield Management
•Fuel
•Flight/Crew Scheduling
•Aircraft Acquisition
•Aircraft Lease
Inbound Logistics
•Ticket Counter/ Kiosk
•Gate & Aircraft Operations
•Onboard Services
•Baggage Handling
•Ticket Offices
Operations
•Baggage System
•Flight Connections
•Rental Car & Hotel
•Reservation System
Outbound Logistics
•Promotion/ Advertising
•Frequent Flyer
•Travel Agent Programs
•Group Sales
•Electronic Tickets
Marketing & Sales
•Lost Baggage
Service
•Complaint Follow-up
•Support Centre
Service

165. 165ICON, IIM Bangalore
Key Drivers
Industry Dynamics
Key SegmentShare
2 Wheelers80%
Passenger Vehicles15%
Commercial Vehicles3%
•Increasingcommoditypricesimpacting
productioncostsandutilizationlevels
•Semiconductorcrisisandlackofdomestic
supplylimitingthepaceofproduction
•Highsalesdependenceondomesticmarket
andIndianEconomiccycle(decliningshareof
exports)
•Chronictradedeficitinautoparts,industry
Industry Challenges
•Barrierstoentry(High):capitalcosts,distribution
network,andavailabilityofautomobilecomponents.
•Bargainingpowerofsuppliers(Low):stiffcompetition
•Bargainingpowerofcustomers(Veryhigh):dueto
availabilityofoptions.
•ThreatofSubstitutes(Medium):Increasingshared
mobilityoptionsandimprovingpublictransport
•Rivalry(High):Competitionfromestablishedinternational
anddomesticbrands
Industry Forces
IndustryReport
•IBEF-Automobiles
•Invest India –Automobiles
•IBEF -EV
Useful Links/Reports
Automobile Industry
RevenueCostGrowth
Automobile
SalesRaw MaterialIncreasing Exports
After Sales
ServiceLabourPolicy Support
Financing
servicesAdvertisingRobust R&D Centres
•Body/Chassis
•Casting, machining
and welding
•Quality Testing
Product
Assembly
•Warehousing
•Distribution
•Dealership
Management
Logistics &
Transportation
•Skilled Labour
•Process
/Product Innovation
R&D and Product
Design
•Raw materials:
Aluminium, Iron,
glass, plastic,
rubber
•Warehousing
Raw Material
Management
•Engine/Battery
•Suspension and
braking
•Electronics
Auto Components
•Advertising
•Finance, Insurance
•Used Cars, Rentals
•Service, Spares
•Auto Expo
Marketing and Service
•Indiaisthe5thlargestAutomobilemarketintheworld
•Transitioningtowardselectricvehicles:expectedto
witnessaCAGRof44%toreach$150Bmktby2030
•BharatStage(BS)-VInorms:Indiaaimstoreduceits
carbonfootprintby33-35%by2030
•PositiveGSTimpact:Reductionintheoverallcost
structureofIndianAutomobileindustry
•PolicySupport:AtmanirbharBharatAbhiyaan,Automotive
MissionPlan2026topromotemanufacturing,export-
linkedfiscalincentives,VoluntaryVehicleFleet
ModernizationProgramme,FAMEIIpolicyforEVadoption
•MarketDevelopments:Organizedpre-ownedcarmarket,
sharedmobilityecosystem
•CovidImpact:
oshortageofrawmaterialandsemiconductors
oshiftingofproductiontoothercountries,
oliquiditycrunch
opreferenceforprivateownershipofvehicles
oshrinkageinconsumerdemandduetoWFH
Key Market Trends

166. 166ICON, IIM Bangalore
•Long term lease of lime
quarries
•Plants located close to quarries
•Long term supplier contracts
for other RM
Procurement
•IndiaisSecondLargestproducerandconsumerofcement
inworld.
•MarketSize:CementsalesinIndiastoodatUSD9.05Bin
FY20.
•IndustryGrowth:India’scementproductionisexpected
toincreaseataCAGRof5.65%andcementconsumption
togrowataCAGRof5.68%.
•IncreasingInvestment:FDIinvestmentincementindustry
reachedUSD5.24B.NationalInfrastructurePipeline
introducedprojectsworthUSD14.59Binnext5years.
UnionbudgetforMoRTHstoodatUSD27B.
•Innovation:Carbonneutralitygoalsbycement
companies.Implementationofcarboncapture(CCUS)
units.
•Import:USD119.83growingat0.42%CAGR.
•Export:India’sexportofvariousgradesofcementstood
atUSD118.15M.Countriesexportedto:SriLanka,Nepal,
US,UAE,Bangladesh.
Market Trends (elaborate data/points)
•Process: Limestone Clinker
grinding and additives
Cement
•High automated setups
•Imp: Economies of Scale
•High start-up costs
Manufacturing
•Major freight cost (higher in
rainy season)
•Rail-road mix used
•Warehouse network
•Large orders directly to
dealers/customers
Distribution
•Strong relationship with
contractors and developers
•Distributor-dealer network of
sales
•Bulk orders are cheaper
Sales and Marketing
Key Drivers
RevenueCostCAPEX
Sale of cement
(98%)
Transportation
costs (30%)
Plant &
Machinery (40%)
Interest Income
(2%)
Power & Fuel
costs (20%)Land (20%)
Material cost
(20%)
Captive power
plant (10%)
Industry Dynamics
Key Customer SegmentShare
Housing and Real Estate68%
Infrastructure22%
Industrial Development10%
•ReductioninCO2emissionsanduseofclean
energyinproductionandlogistics.
•HighLendingratesbybankshindersgrowthas
HighCAPEXrequiredincementindustry.
•HighTariffslikehighexciseduty,salestax,
royaltyonlimestoneandcoalhindersdemand.
•Limitationsinrailandroadtransport.
Industry Challenges
•SupplierPower:Low.Companiesoptforbackward
integration,weakeningsupplierpower.
•BarrierstoEntry:High.HighCAPEX,fixedcostsandneed
foreconomiesofscale.
•ThreatofSubstitutes:Low.Noproductexiststodatethat
cansubstitutecementeffectively.Onlyquantitycanbe
varied.
•BuyerPower:Low.Lowsubstitutability,oligopolistic
market.
•Rivalry:Moderate.Concentratedmarket.
Industry Forces
Cement Industry
•CementIndustryinsights
•MckinseyReport
•IndustryReport
•IBEF
Useful Links/Reports

167. 167ICON, IIM Bangalore
E-Commerce Industry
Sourcing
Vendor contracts
Quality testing
Mass customization
Modular Production
Inbound Logistics
Demand planning
Warehousing
Unified offline & online
inventory management
Assortment Planning
Working capital
management
Inventory Management
Own platform Logistics
Platform excellence
Platform maintenance and
repair
Order management
Packaging and invoicing
Operations
Targeted marketing
Multi-channel attribution &
end-to-end ROI
Customer retention
Payment methodology
Market research
Discounting & promotion
Marketing and Sales
Delivery planning
Logistics partners
Omnichannel fulfilment
Product queries
Return management
Order Fulfillment
RevenueCostGrowth
Sales CommissionPlatform feeTier 2 & 3
Private Labels
Inventory and
supply chain
costs
Government
policies
Listing fee &
customer EMIs
Promotion/
Marketing
Internet
penetration and
online payment
Key DriversPorter’s Five ForcesMarket Trends
KeyDataPoints
•IndustrySize:India’se-commercemarketisexpected
toreachUS$111billionby2024andUS$200billionby
2026
•Consumerelectronicsandapparelsmakesup80%ofe-
commercevalueinIndia
GrowthOpportunities
•Omnichannelfulfilment:Integratingonlineandoffline
toprovideend-to-endexperience
•Policy Support: 100% FDI is allowed in B2B e-
commerce. 100% FDI under the automatic route is
permitted in the marketplace model of E-commerce.
•Increasing investments: India’s ecommerce sector
received US$ 15 billion of PE/VC investments in 2021
which is a 5.4 times increase YoY.
•GrowingDemand:India’ssocialcommercehasthe
potentialtoexpandtoUS$16–20billioninFY25,
growingataCAGRof55-60%.
Industry Challenges
•Increased competition and pressure to deliver as soon as
possible
•Regulatory considerations of data protection and
consumer protection rules for sellers & marketplaces
•Customer loyalty as switching costs are too low and
competition too high
•High browsing users, low payment customers
•Threat of New Entrants: High (high government support,
brick & mortar turning online)
•Bargaining power of buyers: High (low switching cost)
•Internal Competition: High (multinational players, low
differentiation)
•Substitutes: High (multiple offline and online players)
•Bargaining Power of Suppliers: Low (Multiple e-
commerce platforms and offline stores to list their
products), own websites of major supplying brands
Key Performance Indicators
Fill Rate: How many items out of the ordered are delivered
OTIF (On Time In Full): A stricter measure than fill rate, includes
timely delivery along with fill rate
Funnel metrics: Number of people dropping at different stages of
customer journey, download, bounce rate, cart abandonment
CLV: Cust Lifetime Value, measures total spend of
customer on the platform
SWOOS: Sales weighted out of stock

168. 168ICON, IIM Bangalore
Financial Services –Asset Management
Revenue & Cost Drivers
Assetmanagementreferstothemanagementonothers’
behalf.Itisbuiltonthenotionthatfutureissomewhat
predictable,althoughitisnot.
•Portfolio:Setofinvestmentsownedandmanagedasa
collectivewholewithspecificinvestmentgoals.
•AUM:AssetUnderManagement-totalmarketvalueof
thefinancialassetswhichafinancialinstitutioncontrols
•NetAssetValue(NAV):Valueofmutualfundshare(fund's
totalassets-fund'sliabilities)/outstandingshares.
•Assetclass:Securitieswithsimilarfeaturese.g.,stocks,
bonds,cashequivalents,etc.
•Capitalgain/loss:Thedifferencebetweenasecurity's
purchasepriceanditssellingprice
•Growthinvesting:Investmentstrategythatfocuseson
stocksofcompaniesandstockfundswithrapidgrowth
•Valueinvesting:Purchasingequitysecuritiesthatyou
believearesellingbelowestimatedtruevalue
Key Performance Indicators
Revenue drivers:
•Management charges: Charged on each Portfolio
Management Services (PMS) quarterly or annually
•Profit sharing: Fixed percentage on any profit made by
asset management company
•Entry load: One time fee of ~3% at the time of
purchasing PMS
•Others: Custodian fee, commission & transaction fee,
demataccount charges, etc.
Cost drivers:
•Branch operation
•Maintenance of communication and IT infrastructure
•Market schemes implementation
•Partnership management
•Salary and employee benefits cost of staff
Currentmarkettrends:
•ESG(Environmental,SocialandGovernance)investingis
makingassetmanagersoffernewproductsandmodify
theiroperationstodeliverthem.
•Globalassetmanagerareinvestingheavilyindatastrategy,
artificialintelligenceanddigitization.
Futuremarkettrends/growthprospects:
•ConsolidationthroughM&A:By2030theindustrywill
haveasmallclubofgiantassetmanagersandabiggerone
ofnichemanagers.
•Competitionwillrevolvearoundproductsforparticular
needse.g.,productsforretiredvs.thoseformillennials
•FedinstructedbankstostopwritingLIBORcontractsby
2021end.SOFR(SecuredOvernightFinancingRate)will
replaceLIBORbyJune2023.
PostCovidImpact:
•Increasedfocusoncostoptimizationspecificallylocation
strategytodownsizeofficespace
Key Market Trends
Drive revenue generation
•Sales
•Marketing
•Customer Service
•Trading
Front Office
•Risk Management
•IT
•Corporate Finance
•Portfolio Management
•Research
Middle Office
Administration & Support
•Accounting
•Human Resources
•Payroll
•Operation
Back Office
Offer investment products
•Investment Banks
•Brokers
•Dealers
Sell-Side Firms
Manage portfolios
•Pension Funds
•Endowment Funds
•Sovereign Wealth Funds
Buy-Side Firms

169. 169ICON, IIM Bangalore
Revenue
drivers
Interest from
loans
Transactions
fees
Value Added
Services
Investment
(bank's own)
Revenue & Cost DriversKey Market TrendsKey Performance Indicators
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Marketing
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your audience and add a
unique zing and appeal to
your Presentations.
Sales
You can simply impress your audience and add a unique zing and
appeal to your Presentations.
Products & Services
You can simply impress
your audience and add a
unique zing and appeal to
your Presentations.
Transactions
Porter’s Five Forces
Segments & Key Players
•Public Sector Banks:SBI –largest market share (23%)
3rd largest bank in India by market cap (383,312 Cr)
•Other PSBs:PNB, Bank of Baroda
•Privately Owned Banks (Indian):HDFC –largest bank in
Indiamarket cap (822,326 Cr), ICICI –2nd largest by
market cap. Others: Axis, IndusInd
•Foreign Banks: Citibank, Standard Chartered, HSBC
•Rural Cooperative Banks:Saraswat Co-op Bank –largest
•NetInterestMargin(NIM):Thedifferencebetweenthe
interestincomeearnedandtheinterestpaidbyabank
relativetoitsinterest-earningassetslikecash
•CurrentAccountSavingsAccounts(CASA):Typeofnon-
termdepositaccount.Haslowerinterestratethanterm
deposits&isacheapersourceoffundsforbanks
•GrossNon-PerformingAssets(GNPA):Thetotalvalueof
non-performingassetsinaparticulartimeperiod.
•CRR/SLR:Percentageofcashreserves/liquidassetsthat
thebankmustmaintainwhichguaranteessolvency
•Supplier'spower(Low):MoneysupplycontrolledbyRBI
•Buyer'spower/Demand(Medium):Increaseswith
income,creditworthiness.Financialinclusionsscheme
forruralcitizen
•BarrierstoEntry(High):Duetoregulationsandlicensing
mandates,investmentinphysical,digitalinfrastructure
•Competition(High):HighcompetitionfromNBFCs
•Digitization: Banking-As-A-Service platforms andopen
banking, increasing need to protect data, strengthen IT
•Consolidation:Huge consolidation in public sector banks
to improve capital efficiency & remain profitable
•NPAs & credit extension: Increase in ratio of stressed
assets and bad loans leading to slow down in lending.
•Post Covid Impact: Difficult and slow recoveries,
increased adoption of digital channels, greater cyber
frauds
Advertising, sales support
is becoming increasingly
relevant due to high
competition from NBFCs
Funding Products -loans, securitization of assets, mortgages
Investment services in securities through capital markets
Other advisory services like asset & portfolio management
Processing high volume
transactions at high speed
for payments, trading, and
clearing & settlement
Customer acquisition is
donethrough multi-
channel, focusheavilyon
relationship management
Cost Drivers
Fixed Cost
Physical
Infrastructure
Digital
Infrastructure
Variable Cost
Operational
Costs
Interest on
Deposits
Provisioning
Cost (NPAs)
Employee
Salaries
Employee
Efficiency
Financial Services –Banking

170. 170ICON, IIM Bangalore
•Sourcing raw materials
•Quality testing
•Warehouse storage
Inbound Logistics
•India’sFMCGmarketisFourthlargestinworldandmajor
contributortoIndianeconomy.
•MarketSize:FMCGmarketcapitalizationinFY20wasUSD
110B.Urbanmarketaccountfor55%andruralmarket
accountfor45%.
•IndustryGrowth:FMCGmarketisexpectedtogrowat
CAGRof14.9%toUSD220Bby2025.Growthisdrivenby
ruralareas(14.2%),Tier1market(2.7%),metromarket
(0.8%).
•IncreasingInvestment:100%FDIinfoodprocessingand
single-brandretailand51%inmulti-brandretail.USD20B
FDIinFY21.
•PolicyandRegulatoryFramework:RelaxationofLicense
rules,FDIinorganizedretail,SETUscheme.
•Imports:IndiaimportedFMCGproductsworthUSD58B
inFY19.
•Exports:IndiaexportedFMCGproductsworthUSD145B.
TopImportandexportpartnerareMiddleeast,North
Africa,Europe,NorthAmerica.
Market Trends (elaborate data/points)
•Manufacturing
•Production, quality, and
control
•Packaging
•Warehouse storage
Operations
•Distribution center,
channel
•Order Handling
•Dispatch
•Delivery invoicing
Outbound Logistics
•Branding
•Advertising, promotion
•Customer, order mgmt
•Sales analysis
•Market research
Sales and Marketing
Key Drivers
RevenueCostGrowth
Pricing
Raw material
and processing
cost
Shift to
organized
market
PromotionDistributionGrowth of e-
commerce
DistributionPromotionRural
consumption
Industry Dynamics
Key Product SegmentShare
Food and Beverages19%
Healthcare31%
Household and
Personal care50%
•RegionalPlayers:Regionspecificplayerswith
wellconnectedvaluechainposeathreatto
bigFMCGplayers.
•SupplyChain:Smalldisruptionsinsupply
chaincancausehugedelays.
•LackofInfrastructure:Lackoftransportation
andstoragefacilitiesespeciallyforitemswith
shortshelflives.
Industry Challenges
•SupplierPower:Low.Bigcompaniescontrolpricing,
fragmentedcommoditysupplier.
•BarrierstoEntry:Moderate.Investmentindistribution
network,promotions,advertising.
•ThreatofSubstitutes:High.Narrowproduct
differentiation,pricewar.
•BuyerPower:High.Lowswitchingcost.
•Rivalry:High.Highlyfragmented,strongbrandsata
discount
Industry Forces
FMCG Industry
•IndustryInsights
•MckinseyReport
•IndustryReport
•IBEF
Useful Links/Reports
•Warranty
•Maintenance
•Education, training,
upgrade
Servicing

171. 171ICON, IIM Bangalore
•Producers –Farmers,
Breeders, Fishermen
•Inputs: Agri produce, fruits
and vegetables, meat and
poultry, marine, milk
Raw Materials
•IndiaisLargestmilkandbuffalomeatproducerand
secondlargestproduceroffruits,vegetables,eggs,goat
meat.
•MarketSize:GrossvalueadditionofFPIinFY21wasUSD
288.28B.Agricultureandalliedsectorcontributes20.2%
totheGVAoftotaleconomy.58%organizedsectorand
42%unorganizedsector.
•IndustryGrowth:FPIisexpectedtogrowat10%CAGRto
USD528.26BbyFY27.
•IncreasingInvestment:GOIhascontinuedtheumbrella
PMKSYschemewithanallocationofUSD0.58BtillFY26.
100%FDIallowedunderautomaticrouteinFPI.FDI
equityflowinFY22isUSD710M.TotalFDIflowisUSD
11B.
•GrowthStrategiesAdopted:Increasingbusinessand
productinnovation,low-costpricingstrategy,andjoint
venturesandtieupswithprivateandpublicplayers.
•Import:IndiaimportedUSD21Bworthprocessedfood
whichwas5.3%oftotalimportsinFY21.
•Export:IndiaexportedUSD2.14+tocountrieslikeUSA,
UAE,Malaysia,Nepal.
Market Trends (elaborate data/points)
•Cold storage
•Collection agents
•Cooperatives, FPOs
•Direct sourcing
•Logistics
Warehousing
•Cleaning, sorting
•Mixing, grinding
•Pulping, juicing
•Pasteurization
•Dehydration, powdering
Processing
•Grading
•Quality control
•Packaging
•Cold storage
•Food and Dairy corp.
Packaging and Transport
Key Drivers
RevenueCostGrowth
Sale of byproductsProduction
cost (53%)
High consumer
base
Sale of food and
beverage produced
Processing
(12%)
Conducive
policies –PLI
schemes
Distribution
(7%)
Agri-commodity
hub
Industry Dynamics
Key Product SegmentShare
Meat, Fish, Fruits40%
Grain Mill11%
Beverages25%
Dairy Products5%
•Supplychaingaps:Inadequateprimary
processing,storageanddistributionfacilities.
•Seasonality:Highseasonalityinoperations
leadingtolow-capacityutilizations.
•Institutionalgaps:HighdependencyonAPMC
marketsincreasescost.
•Lackoffocusonqualityandsafetystandard
Industry Challenges
•SupplierPower:Low.Bigcompaniescontrolpricing,
fragmentedcommoditysupplier.
•BarrierstoEntry:Moderate.Investmentindistribution
network,promotions,advertising.
•ThreatofSubstitutes:High.Narrowproduct
differentiation,pricewar.
•BuyerPower:High.Lowswitchingcost.
•Rivalry:High.Highlyfragmented,strongbrandsata
discount
Industry Forces
Food Processing Industry
•Annualreports
•Food Processing
Industry -Annual
Report
•IndustryReport
•IBEF
Useful Links/Reports
•Carry and Forward agent
•Depots and Stockists
•Wholesalers
•Retail stores and e-
commerce
•International export
Distributionaand Retail

172. 172ICON, IIM Bangalore
Currentmarkettrends
•Healthcaresectorexpectedtoreach$370B+bytheendof
2022growingataCAGRof22%since2016
•Risinginstancesoflifestylediseasesinurbanareas
boostingdemandforspecializedcare
•Growingmedicaltourismmarketduetoavailabilityof
qualityservicesatrelativelylowcost
Futuremarkettrends/growthprospects
•Publicprivatepartnershipmodelsforestablishing
hospitals
•Digitizationofhealthcarerecordsviahigheradoptionof
eHRs
CovidImpact
•Changeinattitudetowardspersonalhealthandhygiene,
healthinsuranceandmedicalcheck-ups
•Adoptionofdigitaltechnologiesincludingtelemedicine
•Increaseinhealthcarebudgetallocationby125%+in
2021&2022.
Market Trends (elaborate data/points)Key Drivers
Industry Dynamics
Key Segment
Primary Care
Secondary Care
Tertiary Care
•Lack of Infrastructure like well-equipped
medical institutes & hospitals
•Skilled manpower shortage:Includes doctors,
nurses, paramedics, and primary healthcare
workers
•High Out of Pocket expenditure-More than
2/3rdexpenses paid by the patient
Industry Challenges
IndustryReport
•IBEF
•InvestIndia
Useful Links/Reports
Healthcare Services Industry
•Walk-in
•Traditional Scheduling
•Scheduling via
appointment booking
apps like Practo
Appointment Booking
•Primary / Secondary /
Tertiary Hospital
•IPD (In-patient care)
•OPD (Out-patient care)
•Emergency Section
Hospital Visit
•Medical History
•Screening based on
patient symptoms
•Diagnostic Testing
Diagnosis
•Medical procedure
•Clinical & ops support
•Doctor (GP, CP, Specialist)
•Equipment & Supplies
Treatment
•Monitoring and discharge
•Bill Payment
•Post discharge care
•Follow-up visit
Post-Treatment
•ARPOB–AverageRevenuePerOccupiedBed
•ALOS–AverageLengthofStay
•OccupancyRatio-%Bedutilization
•Staffavailableperpatient
•GP–GeneralPhysician
•CP–ConsultingPhysician
•OOP–Outofpocketexpenditure
•IP–In-patient
•OP–Out-patient
KPIs and Important Terminologies
RevenueCostCAPEX
Healthcare
consultation &
services
Salaries & HR
costs
Infrastructure &
Operational set-
up
Diagnostic servicesInfra &
Equipment Equipment Costs
Drug SalesConsumables
& utilitiesOthers
Top Players
Apollo
Fortis
Narayana

173. 173ICON, IIM Bangalore
Currentmarkettrends
•Indiaistheworld’s10thlargesttourismeconomyinterms
ofcontributiontoGDP
•IndustryhasseenincreaseinARRsby6-8%y-o-ybasis
lowdemandpostcovid
•Cyclicalityandseasonality:Thissectorishighlyinfluenced
bypositivecyclesandpeakseasonswhichobservehigher
revenueandoccupancyrate
EmergingThemes/Trends
•Healthsafetyconcernsleadtoadoptionofcontactless
hospitalitylikemobilecheck-inservices,etc.
•Focusonsustainabilityledbyhighcustomerawareness
fromsmartbulbstosustainablematerials
•Leisure&luxurytourismpickinguppace
CovidImpact
•Pick-upindemandpostfirst-wavewasbasedonleisure
travel,staycations,weddings&higherF&Brevenues
•OccupancyinQ1FY2023wereat~30%levels,higherthan
~20%ofQ1FY2022,basisopeningoftheIndianEconomy
backtonormalcy
Market Trends (elaborate data/points)Key Drivers
RevenueCostCAPEX
Room Tariffs (60%)Salaries (40%)Construction
Costs (40%)
F&B (35%)Consumables
(30%)Land (25%)
Events (10%)Maintenance
(10%)
Furnishings
(20%)
Industry Dynamics
Segmentation by typeShare
Independent/Unbranded70%
Branded/Chains10%
Start-ups (Oyo etc)10%
•PostCOVIDtravelhesitationincertain
sectionsofthesociety
•WFHleadingtoreducedbusinesstravel
•Shortageofskilledemployees
•Highturnoverofqualityworkforce
•Maintainingprofitabilityamidsttheever-
increasingexpectationsfromguestsabout
offeringsandservicequality
Industry Challenges
•SupplierPower:Low.Noover-poweredmonopolistic
suppliersinanyaspect
•BarrierstoEntry:High.HighCAPEX,fixedcostsandneed
foreconomiesofscale.
•ThreatofSubstitutes:High.Lowswitchingcostsandlarge
numberofalternativesfromnewagestartupslikeOyo,
Airbnbetc.
•BuyerPower:High.Lowswitchingcosts,consumerwants
thecheapestalternatives
•Rivalry:High.Lotsofcompetitorsacrossallsegments
Industry Forces
•IndustryReport
•IBEF -Tourism &
Hospitality
Useful Links/Reports
Hospitality Industry
•Food & Beverages (F&B)
•Cleaning supplies
•Room supplies
•Contractual services like
internet, cable, security,
etc.
Procurement
•Front-desk operations
•Housekeeping operations
•Kitchen operations
•Laundry operations
•Revenue management
•Staff training
Operations
•Check-In/Check-Out
•F&B services
•Laundry services
•Transportation services
•Other on-demand services
Guest Services
•Advertisements
•Promotions & discounts
•Loyalty programs
•Tour packages
Sales & Marketing
•Online Travel Aggregators
(OTAs)
•Direct (Website/ app/
telephone)
•Walk-ins
•Tour-&-Travel Agents
Distribution

174. 174ICON, IIM Bangalore
•IndiaInsurancemarketstandsat$131BnasofFY22.The
IndianinsuranceindustrygrewataCAGRof17%overthe
lasttwodecades
•LifeInsurancepenetrationhasbeenpoorinIndia(~3%)…
Penetration=premiums/GDP
•Digital adoption: The share of digital premium collection
in retail insurance (life + general) rose from a negligible
level in FY15 to ~4% (or US$1.3bn)in FY20 and could
grow 12x to US$16bn by FY25
•Theinsurancedensity,whichiscalculatedasratioof
insurancepremiumtopopulationis$59forlifeinsurance
inIndiawhilethegloballifeinsurancedensitystandsat
$379
•Newpoliciesissued:Duringthelastyear(FY21),life
insurersissued288.47lakhnewindividualpolicies,out
ofwhichLICissued75.9%ofpoliciesandtheprivatelife
insurersissued24.1%ofpolicies
•MortalityProtectionGap:Thetotalmortalityprotection
gapinIndiastandsat$16.5tn(asof2019)withan
estimatedprotectiongapof83%oftotalprotectionneed
Market Trends (elaborate data/points)
Understanding and
strategically penetrating the
addressable market to deliver
products and services and to
generate revenue
Distribution & Sales
Driving, monitoring and
enabling sales and customer
retention through brand
management, advertising
and customer engagement
Marketing
Using customer and market
insights to design, develop
and deploy products and
services
Product Development
Evaluating and settling claims,
including payment,
reinsurance recovery and
litigation; managing
administrative activities
Policy administration &
Claims management
Key Drivers
RevenueCostGrowth
Premiums collected
Claims paidInsurtech
partnerships
Product
Development,
mkt and sales
support
New Models,
personalized
products
Investment income
(interest income)
Operating and IT
support
AI & Automation
for faster claims
Industry Dynamics
SegmentShare
Life insurance75%
Motor insurance8.5%
Health 8%
•Lack of organiseddata makes underwriting
difficult which could lead to improper pricing
•Lowinsurancepenetrationtotier2+cities
•Distribution:Insuranceisapushproduct
whichrequiresalotofsellingperse;digital
modeofeducatingcustomersdoesn’tworkin
tier2+cities
Industry Challenges
•SupplierPower:High.Supplierbeingthedistributorhave
customerdatabase
•Barrierstoentry:High.Overallthreatishighgiventhat
entryissubjecttolicenseandregulations
•Threatofsubstitute:High.Similarityinservicesmakes
•switchoverapotentthreat
•BuyerPower:High.Theyhavemultipleoptionsavailable
•Rivalry:High.Multipleplayersaretherewithcustomized
offerings
Porter’s Five Forces
Insurance Industry
•ValueChain
•IBEF
•InvestIndia
Useful Links/Reports
Analyzing risk profiles and
premium pricing models to
bind and issue policies
Underwriting

175. 175ICON, IIM Bangalore
•IndiaisSecondLargestproducerofcrudeandfinished
steelprecedingtoChina.SteelIndustrycontributes2%to
nation’sGDP.
•MarketSize:Steelproductioncapacityis150MTinFY22.
Expectedtoreach300MTbyFY31.Finishedsteel
consumption86.3MT
•GrowthinPerCapitaSteelConsumption:Percapitasteel
consumptionexpectedtogrowfrom74.7kgto160kgby
FY30.Ruralpercapitaconsumptiontoincreasefrom19.6
kgto38kgbyFY30.
•IncreasingInvestment:GovernmentallocatedUSD6.2M
toMoS.100%FDIallowedthroughautomaticroutein
steelindustry.Indianmetallurgicalindustriesattracted
FDIsofUSD16.1BinFY21.
•Innovation:India-RussiaMoUtocarryoutresearchin
steelsector.26R&Dprojectsapprovedbygovtwith
financialassistanceofUSD25M.
•Import:Indiaimported4.31MToffinishedsteelinFY22.
•Export:IndiaNetexporter.Exported12.22MTtoBelgium,
Italy,Turkey,Spain,Hongkong,Vietnam.
Market Trends (elaborate data/points)Key Drivers
RevenueCostGrowth
Sale of steel for
construction &
automotive parts
Raw Material
Cost (45%)
Growing
demand
Sale of steel for
Railway Parts
Power & Fuel
costs (10%)
Govt policy
support
Sale of Semis & By-
products
Salaries &
Wages (5%)
Increasing
investment
Industry Dynamics
Key Customer SegmentShare
Construction62%
Capital goods15%
Automotives and railways12%
Intermediate Products11%
•Financing:Highlycapital-intensivesector,high
costoffinancingcoupledwithcyclicaldemand
•Logistics:Primaryrawmaterial(ironandcoal)
arebulkyinnaturewhichmakeslogistics
challengingandcostly.
•Rawmaterial:Abundantironreservesbut
limitedreservesofcokingcoalreqdinBF.
Industry Challenges
•SupplierPower:High.Duetolimitedironorereserves.
Companiesoptforbackwardintegration,weakening
supplierpower.
•Barrierstoentry:High.Highcapex,fixedcostsandneed
foreconomiesofscale.
•Threatofsubstitute:High.Growingdemandanduseof
aluminuminautomotive.
•BuyerPower:Low.Lowsubstitutability,onlyfewmajor
player.
•Rivalry:High.Entryofexporterscanfurtherescalateit.
Industry Forces
Iron and Steel Industry
•Industryoverview
•MinistryofSteel-
Report
•IndustryReport
•IBEF
•PWCReport
Useful Links/Reports
•Blast Furnace: Pellets of
iron ore, carbon fuel &
limestone with
superheated air form
iron in molten state
Iron Production
•Oxygen Furnace (LD
Shops) : Molten
•Iron, Steel scrap & high
purity oxygen are used
in formation of steel
Steel Production
•Demand Planning
•Service & Delivery
•Performance
•Outbound Logistics
SCM/ Logistics
•Extraction of iron ore
from rocks
•Creating coke from coal
to fuel furnaces
•Alternative: Buying
Raw Material
•Pricing of all products
•Sales team efficacy
•Key a/c management
•Customer Service
•Support Tools
Sales

176. 176ICON, IIM Bangalore
GlobalDeliveryModel
IndianITcompaniessuchasTCSarenowopeningservice
hubsclosertolargeronshorecustomersinUKandUSAto
expandtheirglobalfootprint.
SMAC
Companiesareincreasinglylookingtoderivemorevalue
fromtheirITinvestmentsandarenowseeingtheirnextbig
opportunitiesindigitaltransformationintheSocial,
Mobility,AnalyticsandCloudverticals
CyberSecurity
Governmentalpolicytocombatcyberthreatsfromforeign
entitiesisbeingstructured,withITcompaniesplayinga
largeroleincollaborationsfortheirexpertise
PE-VC,FDIInvestments
Thissectorcontinuestobeveryattractiveforinvestors,
attracting$70BinFDIoverthelast10years,$12.4BinPE
investmentsinadditiontooffshorehubdevelopmentby
Google,Microsoftet.al.
Key Market Trends
PotentialEntrants(Low):Projectsarequitelargefor
commoditizedservices,andlearningeffectsmakea
considerabledifferenceinservicequalityandcost
Buyers(High):Servicesarenowincreasinglymodular,and
buyerscanassembleasuiteofservicesfromdifferent
vendorsandcanswitchouttoo
Substitutes(High):Philippinesemergingasviable
alternativetoIndiaforoutsourcing.Automationisalso
renderingsupportservicesredundant
Suppliers(High):Specificsuppliersoflicensesandother
publiccloudprovidersholdveryhighbargainingpower.
Infrastructureisalsocommoditized
Rivalry(High):Thisindustryiscategorizedbyrivalry
betweenlargefirms,andthedifferentiationisveryminimal,
pushingthemtocompeteoncosts
Porter’s Five Forces
India is primarily an
outsourcing hub. A
combination of IT, KPO and
BPM services are tailored
to industry specific value
chains
§Software R&D
§IT Consulting
§Development Services
§Infrastructure Mgmt.
IT
§Business Consulting
§Legal Services
§Data Analytics
§Market Intelligence
Knowledge Processing
§ERP
§HRP
§CRM
BPO/BPM
RevenueDrivers
§Volumeorthetotalnumberofpersonhoursworked.This
istheuniteconomicsintheITservicesindustry
§Pricingdeterminestherateatwhicheachhourischarged
totheclient
§Utilizationistheratioofthetotalbilledhoursdividedby
thetotalbillablehoursavailableacrossthecompany
§Sincemostrevenueisfromexports,afavorableexchange
ratealsoresultsinbetterfinancialperformance
CostDrivers
§CostofRevenue:Theseareexpensesincurredbythe
companyindeliveringcorerevenue.Anexampleofthis
arethesalariesandtravelcost.
§Selling,General&Administrative:Thesearecostsover
andabovetheCoR.Anexamplecouldbecompany
marketingcostsandcostsoffacilities.
Revenue & Cost Drivers
IT and ITeSIndustry

177. 177ICON, IIM Bangalore
Revenue & Cost Drivers
Current market trends
•Industry size: Indian logistics sector is valued at 215 Bn
USD; forecasted to grow at CAGR 10.5% (2019-25)
•Rank: India’s rank has gone up from 54 in 2014 to 44 in
2018 in the World Bank’s LP Index (overall logistics
performance)
•Improved connectivity: Sagarmala, Bharatmala, & UDAN
projects aimed at improving connectivity and reach,
greater opportunities
•Warehouse Automation: Market valued at Rs 20,200
crores; evolution of technologies like AI, IoT, AGV and
Blockchain
•Emphasis on cold supply chain: Set to grow at CAGR 17-
18% till 2022, primarily driven by pharma sector
•Growth in 3PL & 4PL providers as manufacturing grows:
to provide agility, speed and mobility
•Green logistics: Implementation of sustainable practices
due to technological evolution
Key Market TrendsSector Composition
Revenue drivers
•Domestic transportation
•Import and Export
•Value Added Services (same-day delivery)
Cost drivers
•Transportation costs such as fuel
•Warehousing and packaging
•Shrinkage
•Labor, order processing and administrative
•Inventory
Growth drivers
•Simplified freight policy
•Improving road connectivity network
•Improving railway and air connectivity network
•Cold supply chain and other technology interventions
Top Players
•Damage-proof
packaging
•Material handling &
movement
•Product labelling
Operations
•Multiple Transport
modes: Road, Rail,
Water, Air, Pipelines
Outbound Logistics
•Clustering of packages
•Allocation for delivery
•Salesforce management
Sales & Marketing
•Delivery time intimation
•Last-mile delivery
•Feedback
Servicing
Shipmentreceivedat
customerservice
centres/pickedup
fromcustomer
location
Inbound Logistics
SegmentsMarket ShareKPIs
Road transport59%•Delivery time
•Cost to order
•Warehouse
capacity
•Avg. inventory
Railways35%
Waterways6%
Air transport1%
PlayerSegmentMarket Cap. (INR cr)
CONCORMulti-modal39,893
Blue-DartCourier delivery12,903
Transport
Corp. of IndiaMulti-modal3,277
VRL LogisticsParcel & priority
delivery2,686
Logistics Industry

178. 178ICON, IIM Bangalore
Oil and Gas Industry
•Identification of
onshore/off-shore site
•Seismic surveys to
assess potential
•Field Development
Planning
Exploration
•Project sanctioning
•Create infrastructure
•Strike ‘First Oil’
•Platform at sea to split
oil, gas & water
Production
•Crude is transported by
tankers, pipelines,
trucks, and railroads.
•Natural Gas is shifted by
pipelines and LPG
tankers
Transportation
•Ground tanks are used
for crude and finished
oil products.
•Underground spaces
(reservoirs) are used for
natural gas
Storage
Refines crude into Petrol,
Diesel & LPG
Distilled by BP: separation,
conversion & treatment
Products marketed via B2B
& B2C channels
Refining and Marketing
Upstream MidstreamDownstream
RevenueCostGrowth
Crude OilRaw Materials
Consumed
Overall economic
growth
Natural GasTransportationRapid Technological
advancements
Others(LPG,
Naphtha,
etc.)
Employee
Benefit
Expenses
Increased usage of
petrochemical
products
Key DriversPorter’s Five Forces
•Bargaining power of suppliers ( ) –Despite few
players, there are certain delays by govt in the payments
•Bargaining power of buyers ( ) –Customers are price
takers. Accept the prevalent prices.
•Competitive rivalry ( ) –One/two players operate in each
of the upstream, and downstream segments.
•Threat of new entrants ( ) –Capital intensive and
presence of economies of scale.
•Threat of substitutes ( ) –Renewable energy sources are
yet to gain more traction.
Market Trends
HighRefiningcapacity:Indiaisthe4rthlargestrefinerinthe
worldwithacapacityof248.9MMTin2021.Plantodouble
refiningcapacityby2030.
RapidExpansion:Indiaissettoexpandthenaturalgasgrid
to34,500kmbyaddinganother17,000kmgaspipeline.The
regasificationcapacityoftheexisting42MMTperannum
willbeexpandedto61MMTperyearbytheyear2022
PolicySupport:GOIplanstoinvest~INR7.5Tnin
infrastructureinnext5years.~USD25Bninvestmentis
expectedinexplorationandproductionby2022.
SupportiveFDIguidelines:100%ForeignDirectInvestment
isallowedinupstreamandprivatesectorrefiningprojects.
FDIlimitforpublicsectorrefiningprojectshasbeenraised
to49%withoutanydilution/disinvestmentofequityinthe
existingPSUs.
Increasingenergydemand:Indiaisthe3rdlargestenergy
consumerwithincreasingfueldemand(~2xdieseldemand,
~3xincreaseinnaturalgasdemandby2030)
Industry Challenges
•Significant proportion of Oil Demand is at risk as threat of
Electric Vehicles remains high in transportation segment
(47% contribution to demand currently)
•Globally, crude oil demand set to plateau over the next five
years with rising fuel efficiencies. Highly volatile prices and
stringent standards globally
•Crude Oil supply issues due to geopolitical reasons
Key Performance Indicators
•Exploration and production output:
•Lease operating expenditure: Rent and lease expense on a
per unit basis. Computed by dividing rent and lease
expense with total production
•Capital Project efficiency:Project Production Management
(PPM), digitizing processes

179. 179ICON, IIM Bangalore
Pharmaceutical Industry
Issues: Long wait before
the drug reaches the
commercialization stage,
rising costs of developing
new drugs
Research and Development
Issues: Erratic supply chain,
disruption due to Covid-19,
high dependence on
supplies from China for raw
materials
Sourcing/API/Bulk Drug
Issues: Shift in demand for
formulations, companies
keep shifting mfg. activities,
unpredictability, and
sudden rises in demand for
drugs
Manufacturing/
Formulation
Issue: Lane routing affects
the freight costs and
domestic input costs,
restrictions on commute
and movement of goods
Logistics
Issues: Declining raw
material supply impacts
production and export of
essential drugs, fears of
internal supply shortage
Storage
RevenueCostGrowth
Drug SalesR&DIncreasing fatal
diseases
Licensing of patentsDistributionHealth insurance
permeation
Insurance
Premiums
Promotion/
Marketing
Growing stress-
related diseases
Key DriversPorter’s Five ForcesMarket Trends
•IndustrySize:Estimatedat$42Bin2021andlikelyto
reach$65Bby2024and$120-130Bby2030.Growthof
22.4%CAGRisexpectedinthefuture.
•Production:Ranked3rdforpharmaproductionby
volumeand14thbyvalue.Strongnetworkof3,000
drugmfg.companiesand~10,500manufacturingunits
•Exports:Stoodat$20.70BinFY20and$24.44Bin
FY21
•Healthcareexpectedtoreach$372Bby2022
•R&DSpend:AverageR&DspendofIndiancompaniesis
~8%ofturnover.AsperUnionBudgetforFY22,Rs
2,663Croreshasbeenallocatedforresearch
•Manufacturing:~33%lowermanufacturingcostthan
theUSAenablesIndiatoproducehigh-quality
medicinesatcompetitiveprices.Indiasupplies40%of
genericdemandintheUSand25%ofallmedicinesin
theUK
Industry Challenges
•Focused on generic segment which is plateauing in the US
with increase in competition
•Despite being among the top formulation drug exporters in
the world, India relies heavily on imports of bulk drugs, which
accounts for ~25% of the Indian pharma market
•Pharma Industry needs consolidation to raise funds and scale-
up research capabilities
•Threat of New Entrants: Low (high barriers to entry, high
R&D costs, govt regulations, and distribution network
needs)
•Bargaining power of buyers: Low-Moderate
•Internal Competition: High (large no of small
fragmented players and large no of drugs going off-
patent
•Substitutes: Low Bargaining Power of Suppliers:
Moderate (difficulty in procuring raw materials like APIs)
Key Performance Indicators
Return on Research Capital Ratio: R&D is the major cost for all
pharma companies and not all drug trials result in success
Profitability Ratio: Operating & net margin determine
investment into future research projects and account for the
high marketing expenditures in the competitive pharmaceutical
industry Liquidity and Debt Coverage Ratio: R&D expenditures
are mostly financed by debt.

180. 180ICON, IIM Bangalore
Retail Industry
Sourcing
Vendor contracts
Quality testing
Mass customization
Modular Production
Inbound Logistics
Demand planning
Warehousing
Unified offline & online
inventory management
Assortment Planning
Working capital management
Inventory Management
Own platform Logistics
Platform excellence
Platform maintenance and
repair
Order management
Packaging and invoicing
Operations
Targeted marketing
Multi-channel attribution & end-
to-end ROI ; Market Research
Customer retention Payment
methodology
Discounting & promotion
Marketing and Sales
Delivery planning
Logistics partners
Omnichannel fulfilment
Product queries
Return management
Order Fulfillment
RevenueCostGrowth
Sales CommissionPlatform feeTier 2 & 3
Private Labels
Inventory and
supply chain
costs
Government
policies
Listing fee &
customer EMIs
Promotion/
Marketing
Internet
penetration and
online payment
Key DriversPorter’s Five ForcesMarket Trends
KeyDataPoints
•IndustrySize:India’se-commercemarketisexpected
toreachUS$111billionby2024andUS$200billionby
2026
•Consumerelectronicsandapparelsmakesup80%ofe-
commercevalueinIndia
GrowthOpportunities
•Omnichannelfulfilment:Integratingonlineandoffline
toprovideend-to-endexperience
•Policy Support: 100% FDI is allowed in B2B e-
commerce. 100% FDI under the automatic route is
permitted in the marketplace model of E-commerce.
•Increasing investments: India’s ecommerce sector
received US$ 15 billion of PE/VC investments in 2021
which is a 5.4 times increase YoY.
•GrowingDemand:India’ssocialcommercehasthe
potentialtoexpandtoUS$16–20billioninFY25,
growingataCAGRof55-60%.
Industry Challenges
•Increased competition and pressure to deliver as soon as
possible
•Regulatory considerations of data protection and
consumer protection rules for sellers & marketplaces
•Customer loyalty as switching costs are too low and
competition too high
•High browsing users, low payment customers
•Threat of New Entrants: High (high government
support, brick & mortar turning online)
•Bargaining power of buyers: High (low switching cost)
•Internal Competition: High (multinational players, low
differentiation)
•Substitutes: High (multiple offline and online players)
•Bargaining Power of Suppliers: Low (Multiple e-
commerce platforms and offline stores to list their
products), own websites of major supplying brands
Key Performance Indicators
Fill Rate: How many items out of the ordered are delivered
OTIF (On Time In Full): A stricter measure than fill rate, includes
timely delivery along with fill rate
Funnel metrics: Number of people dropping at different stages of
customer journey, download, bounce rate, cart abandonment
CLV: Cust Lifetime Value, measures total spend of
customer on the platform
SWOOS: Sales weighted out of stock

181. 181ICON, IIM Bangalore
Account
Management
Pre-sales
Support
Purchase
Support
Delivery and
ActivationConsumer journeyProduct/service
Offering Design
•GrowthinRuralDemand:Tele-densityofruralsubscribersreached59.33%inSeptember2021,from58.96%inSeptember2020
•StateInvestment:In2021-22,theDepartmentofTelecommunicationshasbeenallocated$8BnandtheunionbudgetallocatedUS$1.9fortelecominfrastructure
•GovernmentInitiatives:100%FDI,satellitebasedNarrowbandIoT,andthePhasedManufacturingProgramme
•Developmentopportunities:India's5Gsubscriptionstohave350millionby2026.accountingfor27%ofallmobilesubscriptions
Key Trends in Indian Telecom
Revenue Drivers:
•Internet and voice services
•Cross provider calls
•Affiliations (data monetization, device tech.)
Cost Drivers:
•Spectrum costs
•Network infrastructure and equipment
•Operating costs
Revenue & Cost DriversGrowth Drivers
•Growing mobile penetration
•Increasing rural penetration and internet access
•Relaxed FDI norms
•Reduced license fee
Telecom Industry
•CallCompletionRatio
•AverageRevenueperUser
•AverageCallDuration
•IdleTimeonNetwork
•Tele-density
•ChurnRate
•NetworkOperatingCost
•SubscriberAcquisitionCost
KPIs
•Forms framework of
telecom operations
•GIL Infrastructure, Indus
Towers
Tower Infrastructure
•Manufactures hardware,
routers, modem, fiber
optical
•Ericsson, Nokia, Siemens
Network Equipment
•Software Technology
(4G, 5G)
•Sterlite Technology,
Mahindra, Qualcomm
Technology Provider
•LTE Services to end
customers
•Other services such as voice,
messaging and internet.
Network Operators
•Recharge Plans
•Customer Care Centre
Consumers
Major Indian Service Providers (Market Share)
•Reliance Jio –35%
•Bharti Airtel –31.56%
•Vodafone Idea –23%

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IIM Bangalore
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