Case frameworks are structured approaches used to analyze and solve business problems in a systematic way. They help break down complex scenarios into manageable components, allowing consultants and business professionals to consider all relevant aspects of a problem. By using frameworks, individuals can ensure they are thorough in their analysis, explore multiple angles, and avoid overlooking important details. Frameworks provide a roadmap for tackling common types of business issues, such as market entry, profitability, or growth, and are especially useful in interviews to demonstrate a candidate's structured thinking and problem-solving skills.
To use case frameworks effectively, start by understanding the specific business problem you are facing and selecting the framework that best fits the scenario. Begin by breaking down the problem into the key components outlined in the framework. For each component, gather relevant data and ask targeted questions to explore the issue in depth. Use the framework as a guide to ensure that no key area is overlooked, but remain flexible, adapting your analysis based on the unique aspects of the problem. The goal is to use the framework to organize your thinking, generate insights, and formulate a comprehensive solution that addresses the client's needs.
- How has market share and market size changed over time/how do we project it to change in the future?
- How have the positions of our competitors changed in that time frame?
- Who have we taken market share from/lost market share to?
- Is our current niche still viable in this market, or is a pivot worth consideration?
- What is our current pricing strategy, and how does it position us in comparison to our competitors?
- What is our break even point, and how much room do we have to lower price if we want to gain market share?
- What are consumers willing to pay for this product, and is raising prices a feesible strategy?
- What are our fixed costs, and how do they compare to our competitors?
- Do we have unnecessary costs in areas like salaries and wages or distribution? How do those sections of our costs compare to competitors?
- What percentage of our costs are fixed? What does our operating leverage say about the business?
- What is our gross profit, and how does it compare to our competitors?
- Are there supply chain issues or specific variable costs that have an outsized impact on profitability?
- Have any variable costs changed significantly? Have these changes been due to specific market events or changing supply/demand?
- What specific features define the product, and how do they address customer needs?
- How is the product differentiated from competitors, and what is the unique value proposition?
- Does the product effectively solve a significant market need or problem for target customers?
- What pricing model are we adopting, and how does it align with our target market's expectations?
- How does our pricing compare to competitors, and what impact does that have on perceived value?
- What are customers willing to pay for this product, and can our pricing strategy maximize profitability while staying competitive?
- What marketing channels will we use to promote the product, and how will they effectively reach our audience?
- What is the promotional budget, and how will it be allocated across different channels for maximum impact?
- Who is the audience, and how will promotional messaging resonate with their needs and desires?
- Where will the product be sold, and how will the choice of sales channels impact customer access?
- Will the product be available online, and how will digital sales integrate with other distribution channels?
- How scalable is the distribution strategy, and what infrastructure is required to support growth?
- What are the strengths and weaknesses of the product? What do consumers, and more specifically, our ideal customer profile, like about it?
- What substitutes and competitors exist for our product and what differentiates us from them?
- How is the product and company branded, and how does that impact perception and performance of this product?
- Who is our ideal consumer, and how do they shop or consume in our market?
- Have we done research into consumer demand or price elasticity? If so, what did that research suggest and how much do we trust it?
- Have we done research into how those figures compare to our opponents? If not, do we have more simple research into how customers view ths products generally?
- What is our break-even point, and is a significant amount of our consumers willing to pay above it?
- This serves as a lower bound for the price in 99% of case, unless something like a lost leader strategy makes sense.
- How does break-even point compare to our price and the prices of our competitors?
- How can we price this so that we offer a larger consumer surplus then our competitors while also having healthy margins?
- Are there other factors in the business that would encourage a more or less aggressive strategy?
- What is the optimal middle ground between the lower bound of break-even and the upper-bound of consumer willingness to pay?
- Can we grow into new geographic or demographic markets, and which are the most attractive?
- What barriers exist for entering new markets, and would doing so alienate any share of our current market?
- Are there existing players in these new markets that we need to compete with, and if so, what is our strategy to capture market share?
- Can we create new products or services that would meet evolving customer needs?
- How might these additional offerings complement or cannibalize our existing products?
- What resources would be required to develop and produce this new product, and what is the risk level involved?
- What is our current share of wallet among our customers and what could we do to improve it?
- Could loyalty/incentive programs or another strategy be used to improve customer retention and increase repeat purchases?
- Are there unmet needs of our current customers that we can address?
- Could we form strategic alliances or partnerships to accelerate our growth goals? What would the associated risks be?
- Could our weaknesses be remedied by partners or acquisition partners with complementary strengths?
- How can we form partnerships while ensuring that we stay aligned to our long-term goals, and objectives?
- Does the target company align with our long-term strategy and objectives? Would a merger change that strategy meaningfully?
- What complementary strengths or synergies does the target bring to our business? Does it help with or worsen any of our weaknesses?
- How will this acquisition strengthen our position in the market?
- What cost synergies (e.g., operational, sourcing) can we realize post-merger?
- Are there revenue synergies we can achieve by cross-selling products or growing market share? Are there products that might be candidates for being discontinued?
- What timelines are realistic for realizing these synergies, and how can we track progress?
- Is the target company fairly valued, and how does this fit with our financial goals?
- What financing options are available, and what are the risks of each? What might have to change with each of these options?
- How do we ensure that the valuation accounts for potential risks and integration costs? Is any research or due diligence necessary?
- What steps are needed to successfully integrate the target company into our organization? What are potential costs and risks associated with this integration?
- What cultural differences might pose challenges, and how do we address them?
- How can we minimize disruption to operations during the integration process?
