Market Entry Strategy Case Interview - McKinsey Case Study Example

[@cook4jinn69]

I really enjoy watching Stephanie as the interviewer. Thanks for uploading these high-quality videos.

[@frankkkmate4267]

Very helpful for first time interviewee like myself, appreciate the hard work and the dude's courage. I would say there's one point he can improve, which is to explain his thought process (for example the calculation he has done and the logic behinds it) before giving out the actual number, because otherwise by throwing a number to interviewer's strictly could be a bit confuse. One benefit of telling the interviewer your thought process is that in case of any errors, the interviewer could correct you before you made the mistakes in your calculations and or analysis. Very inspiring interview to watch, even I'm not doing the interview myself, but I can still find a lot for me to learn and improve. Thanks!!

[@kovenska]

NPV for the client is not $11m, since the investment costs are splitted with the local partner. And, if I'm not mistaken, accurate Terminal value formula should also contain (1+growth rate) in the numerator, so in our case TV = 10.125 * (1+0,05) / (0,15 - 0,05) = 106.3125m USD. And NPV in this case = 106-45 = 61m USD

[@kivohs]

That is correct

[@mohitsingha1809]

You are right. Don't know how Edward got 11 million?

[@mohitsingha1809]

Edward did 10.125/0.1=101.25-45=56.25 mn so where did the 11 mn come from?

[@mohitsingha1809]

Please see my question below, Edward did 10.125/0.1=101.25 - 45 =56.25. So where did he get 11 million from?

[@bruceli5348]

@@mohitsingha1809 I think what edward did was (10.125/.1) - 90M, because I think she mentioned that they are not splitting costs? I believe kovenska has the correct one though, if they are splitting cost

[@sams.1597]

I start out with a framework to determine market size, competitive landscape & and Cost of entry

[@dabooku.dabookudobucs3228]

Not a very structured approach, could have done much better :)

[@andylapian6475]

actually agree with you alot. I think for the market entry, we always need to understand on how big is the market & what WILL be our "expected" market share. And later touching on "how" to get our expected market share. The host really helped him out to go there.

[@apoorvaawasthi8498]

The NPV calculation we divided the profit with (WACC-Growth) which is 10%. Is it correct?

[@mohitsingha1809]

Correct.

[@shehrozpal4738]

he did really poorly in the begining during market sizing / customer demand

[@saptadeepdas1188]

I want to see what goes into a real case and not in entrance tests

[@niahma3494]

He did really well

[@tejaswinikhandekar441]

Can we please have Jenny Rae back as the host

[@cook4jinn69]

They are all excellent hosts!! I love this lady too!

[@tony_mac]

structure it's not clear that the structure is - looks like the candidates is just jumping from area to area without coherent strategy market estimation it seems that interviewer expected from the candidate to stucture estimations and then proceed with analysis, but he just started calculating also, after getting the market value it'd be great to make a sanity check, unfortunately, it's been missed brainstorming it seems right that it's worth taking some time before jumping in with ideas on how to enter the market (list of options proposed by the candidate doesn't seem mece enough, it's proved in a sense that the interviewer asked for another options) calculations again, it seems that structure was expeted before going on with npv calculation recommendation structure before go on would be great

[@luyizayevhrafova4324]

Could the interview have a more condescending facial expression?))

[@aneleintech]

he's not structured with his approach

[@e-discoverytechnologies9391]

what a nonsense is that? No even ideas about reallity in Nigeria! where is the corruption and insecurity factor?

[@mohitsingha1809]

We were looking at a structure more than anything else. Other things may be important but too time taking to address in a forum like this...