McKinsey Case Interview Example - Solved by ex-McKinsey Consultant

If you've found this video helpful, you're gonna LOVE our free course at www.craftingcases.com/freecourse -- click the link for more info.
Watch now a McKinsey-style case solved by an ex-McKinsey consultant!
Do you want to watch a case interview where I interview a real candidate using this very same case?
Go to www.craftingcases.com/BEDANDBATH to get that video. I added my comments to it, where I tell you what she did right, what she did wrong, and what you should be learning from her major mistakes.
This case could be found in a first round or in a final-round partner interview in McKinsey, Bain, or BCG, in any office around the world.
Most candidates would not be able to create a MECE framework to this case - I would say 60-80% would not pass. The reason is that this is an unusual, out-of-the-box case question. Pre-made frameworks like Victor Cheng's, Case in Point's, and others would not help.
In this video, you will watch me, Julio, an ex-Bainee, interviewing Bruno, ex-McKinsey, with a hard, MBB-level case. A tough one. Bruno can get away safely. He would definitely get an offer based on this. Would you?
Table of contents (so you can find stuff later in the future):
00:34 - Case question
03:21 - Bruno's answer
10:29 - Brainstorming question
11:35 - Bruno's answer to Brainstorming question
16:22 - Follow-up question and answer
19:28 - Analytical question
21:10 - Bruno's answer
26:31 - Recommendation question
26:54 - Bruno's recomendation
If you'd like to see more case interview examples like this one, let us know in the comments and we'll definitely act upon it.
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Hope the best for your case interview preparation and I'll see you on the next video :)
Julio
Music in the video:
"Autumn Mvt 3 Allegro" by John Harrison with the Wichita State University Chamber Players
Licensed under Creative Commons: By Attribution 3.0 License
creativecommons.org/licenses/...
"Funk Game Loop" Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0 License
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[@CraftingCases]

The quickest way to learn to solve cases better is by taking our free course at www.craftingcases.com/freecourse. You'll learn the 6 Building Blocks to solve any case, learn a step-by-step process to solve each of them, and get tons of video practice drills to internalize the techniques.

[@Hakunamatatism]

Ink cartridges

[@wrcz]

I'm watching a video of a mock interview of someone else and my ass was still sweating

[@sbtopjosh4098]

Lol

[@rahilkhana5302]

Relatable🙋🏻‍♂️

[@saptaparnidas6824]

wear diaper in your turn xD

[@rahilkhana5302]

@@saptaparnidas6824 adult diapers haha.

[@Waltz7744]

One thing is learned is how deep the clarification process is before he even attempts to solve the case

[@deacontigra]

Great video guys, helped me out a lot to prepare. After 2 job interviews and a full assessment day with cases , i found out last week that i got the job! Well done! Thanks

[@aliibrahim171]

Wow... Congrats How did u start? Any tips?

[@i2ber357]

He have not time for us now ... 🙃

[@clementchidozie4009]

@@i2ber357 hahaha!!!

[@IsLaFeel]

W

[@selin4943]

How is it going? Please update! :)

[@emmashen8724]

This mock interview looks very real to me and thank u for making this video to let me know what is a good way to interact with the interviewer and to solve the case problem!!!

[@SourisSalut]

I stumbled on this video a few month ago and went through the prep material on your website. Got the job. You guys are so on point! Thanks for all your work!

[@robertlethbridge2029]

Looking to start applying for consulting jobs and I'm glad I found this video. I interviewed at EY years ago and bombed the interview, mostly because I didn't point out information that I thought was completely obvious. For example, in this video, the first thing you say is "Can the business make money?" and my first thought is "Well duh, if you don't think the business can make money, why are we even here." I guess consulting interviews really want you to break down every tiny aspect of running a business. Definitely an important concept to start wrapping my head around. Thanks guys.

First Mock Video that feels real. All the other ones are rehearsed with the people coming with amazing financial ratios they learned about 20 minutes earlier! Thank you for making me less scared to do my interview on Friday :)

[@CraftingCases]

Hey Daniel, glad you liked it! We indeed hit record in the camera and did it in one go! Good luck tomorrow, by the way! Let me know how it goes :)

[@curleypubes3672]

Did you do well Daniel? Can you share some tips?

[@KabbalahredemptionBlogspot]

Got one tomorrow lol I thought I was past case interviews, but it's with an amazing firm.

[@Jay-gs7sp]

hope you did well

[@greggjaclin4810]

This is a great example of what you are trying to present. Thank you for your effort in this.

[@Gri11Master]

This format is "GOLD". This is so inspiring to see behind the scenes.

[@BOBofGH]

Thanks for uploading this. For some reason it's so god damn hard to find simple examples of question and answer for case study interviews. Instead it's all 8 hour-long seminars discussing theories and methodologies behind case study interviews. This is clear and concise and gives you a feeling for how to approach it.

[@shreyhatle6210]

Great video. I would also add "Logistical dependencies" as well since deliveries will be dependent on third party companies such as UPS, FedEx, USPS, etc.

[@dr.wezisunkutumd8745]

I agree with you.

[@xavitomas9786]

Thank you very much! What I liked the most is how you divided the issue tree (as the business is and expand to other segments), it was a great idea!

[@giuliodestro4671]

Very cool to see how Bruno interacted with the interviewer and worked his way through the case, great video!

[@CraftingCases]

Thank you Giulio, we'll make more like this one! Let me know if you have any other suggestions of videos we could make.

[@habiebiee1]

first of all,thank you for your video. I am not here because I want to interview for a consultant job,I am here to learn analyzing and presenting and I think I've learned a lot today. Thank you.

[@MidoriToyota]

De longe vocês tem o melhor material para case interviews! Legal descobrir que são brasileiros! Abs

[@leonhardt2713]

Incredibly good work, especially your 5 ways to be MECE tips. resolved all my already done cases with those powerful tools in mind, and it helps alot to bring a decent structure to the case solving! :) Keep up the good work!

[@ceciliaw1065]

Thank you so much for uploading! Great realistic introduction to case interviews, definitely interesting stuff.

[@GBGOLC]

Good video. A great example to candidates. You should always ask questions and ensure that you understand the problem at hand and focus on it. Show confidence, don’t be afraid and don’t bull shit.

[@jlrob85]

Got my first interview (and case(s)) in two weeks. I'm going to watch as many of these as I can. I'm a little nervous as these videos/answers are amazing. Really hope I can get some good ideas and smash it out of the park

[@20machinm]

Jacob Robinson how did it go?

[@matheusmagalhaes1633]

Thank you, guys! Nice case, slightly different from the normal acquisition cases. And I did this after your fundamentals course and did very similar, in the brainstorm it was nice to see that i was able to capture the mkt place idea ! Obrigado pela ajuda.

[@CraftingCases]

Hey Matheus, very glad to hear that you got to a similar type of answer after going through our free course -- seems like the course is doing what it's supposed to do :) I'd love to hear more about what you thought of the course.

[@IntlDebtLawyers]

What do you mean in the last sentence? Please don’t be rude and speak English. Go to talk Spanish to the Spanish videos. Thanks.

[@Karjakin_]

@@IntlDebtLawyers Thats not Spanish, its Portuguese for "Thanks for your help", he is just trying to be nice, talking un their native language. You are just as ignorant like stupid.

[@Marcgille85]

Great video Bruno and Julio, helps me a lot to prepare.

[@palashmyaccount]

One of the best resources out there. Thank you so much!

[@CraftingCases]

So glad you like it Palash!

[@mafi8360]

Im totally setting up my own B2C towel business now !

[@jayandcindygames]

I got my first case interview with BCG next Tuesday so living and breathing all the videos and this was great. Made it less nerve wracking for me.

[@CraftingCases]

Watch at least the Brainstorming module of our free course if you don’t have the time for the whole thing. Most important module to not make the most common mistake that gets ppl rejected in their first rounds.

[@jayandcindygames]

I watched the whole thing and will be going through your free course! :) cheers guys!

[@Reazuli]

Great job! Would be helpful to know how you go about finding the answers to those questions

[@rogerkoelsch5940]

At 23:00, they should be using a geometric mean to calculate the growth of market share. It's not 12%*1.3*1.4. Instead it should be 12%*[(1.3*1.4))^(1/2)]-1. The impact of those 2 growth initiatives is happening in parallel, not one after the other.

[@aarthisivarkkamani517]

Great interview. I had a mock interview with McKinsey and have a formal case interview today (both over the phone). The interviewer in the mock interview advised me to only take 1.5 mins, possibly max 2 to come up with my structure. He said he'd prompt me for an answer at the 2 min mark, and in fact I slid in just shy of that, which he mentioned as well. In the last maybe 20 seconds, I had come up with a bucket that was very important to the structure, so he did say that my taking this time to add it in was well-used.

[@spids01]

Very good video. Currently binge watching all your videos - so please keep them coming :) One question: Given that we assumed to grow in proportion with the market, how would you change your calculation in the analysis if we grew more, or less that the overall market?

[@CraftingCases]

Hey Jeppe, It depends on how the data is given. Did they give a dollar amount that we're gonna grow on top of the market? Or a % of revenues per year faster than the market? Or percentage points of market share faster? If the first, we'd need to calculate revenue growth for us and dollar growth for market and divide the two (there are some shortcuts depending on the specific numbers) If the second, you can add one multiplication representing that extra revenue growth. Example: if we grow 5% more than the market in the two years, we could multiply the final result by 1.05. (So it'd be current market share *1.4*1.3*1.05). If the third, you can just add the p.p increase to the final market share metric. Try these out and see if it makes sense to you. One challenge with creating these equations is that the numbers never come your way in the same format. You need to learn to be flexible and the only way to do that is to practice with different parameters.

[@SQi-wk1rr]

For the analytical question - it would really help to have a display of the question on the screen for the audience, as I had a very hard time figuring out what Julio said even I increase my earphone volume (since he isn't speak directly to a microphone on him)

[@sharonidnani1641]

Yes. It is very difficult to understand Julio

[@siddharthgujrati9866]

Really like the content. If possible please try to keep the mic as close as possible. Just a suggestion. Recently came across your channel. Really love the work. Cheers.

[@garrett5386]

Hey thanks for doing this, I got the job!

[@kavyak5592]

Oh god this is awesome and thank u so much sir for this video . And I gained knowledge about how to approach a case and I liked the way he approached the case.

[@yusufsalman3534]

Great video of how a simple question yet very important when you start to make a business be answered in structured and concrete way. I am new to this. I wonder if this analysis is similar with product-market fit analysis?

[@CraftingCases]

Hey Yusuf, it's slightly different. Product-market fit analyses if the product fits the market (duh). This one analyses if the market is attractive (i.e. if it's a market you'd want to be in, regardless of if your product fits it or not).

[@kumaradityapratap8132]

Why you guys stopped uploading new videos? Ur case studies are amongst the best I've seen on utube fr 🙏🏽

[@CraftingCases]

Focusing on our courses for now. There’s tonnes of other examples in our free course - it’s our best content, check it out.

[@SouvikAswad]

Thanks a lot. Very helpful!

[@juanmanuelsantamaria2280]

Thanks guys!! Demolished the case now going for the 2nd

[@user-nt3uh8ru6s]

juan manuel santa maria How did it go mate ?

[@nostradamusus]

@@user-nt3uh8ru6s not so well it seems

[@user-nt3uh8ru6s]

Nk lmao.

[@Lbcyoung]

@@nostradamusus 😂😂😂😂

[@treasurem2491]

@@Lbcyoung 😂😂😂😂😂😂

[@siddharthbhaskar7353]

Amazing illustration, I have one question - What if you were asked to choose between "Business as usual" or "Change the business". i.e. choose one branch of your issue tree at the second level. How would you go about that? The reason i ask is i know a lot of hard-ass interviewers don't even give an inch so how to deal with that?

[@CraftingCases]

Hey Siddharth, If the interviewer asks this, one thing to be aware is that they’re not looking for “one right answer”. Instead, they’re looking for (1) a well-reasoned hypothesis, and/or (2) a way to test this hypothesis. The way I’d answer this would be to prioritize “Business as usual” with the hypothesis that it’s easier AND that there’s more opportunity in tweaking the business rather than changing its direction. Then I’d say that to test that I’d compare major e-commerce metrics of this business against benchmarks (Customer Acquisition Costs, Conversion Rates, etc). They may have the benchmarks and they may not have them. They may agree with me on how I prioritized or not. Regardless, by saying those things I give them what they want: a well-reasoned hypothesis and a way to test it.

[@100marcoch]

Thanks for the video... subscribed!

[@CraftingCases]

Glad you liked it Marco!

[@anky789]

At 17:25 there is a pop up which says Bruno missed percentage of visitors who purchase. But at that point he was talking about acquiring new customers and not increasing sales / revenue per customer within the existing customer group (which were his other 2 points) . Am I missing something?

[@alingkarina2979]

Thankyou for sharing! Interesting!

[@Manishdna]

Great interview!

[@notRob_]

New subscriber here. I really enjoy this channel. I would appreciate if you’d give us a link of the PowerPoint presentation you are using for every video in the description. That would help a lot. Thanks.

[@lindazhang8004]

true. maybe can suggest them and have it write down in the website mailbox ? not sure if they would give out though but hope so

[@nabiakar]

This is great! Thanks so much

[@aranmehta3805]

Hi! Great video! I wanted to ask about the time Bruno took upfront to structure. He took 3min 6sec, but I’ve heard 60-90sec is the rule. Could you shed some light on this please?

[@lya4615]

Se eu entendi esse sotaque certo, acho que vocês são brasileiros. Obrigada pela ajuda! :)

[@SKATEINFORMANT]

Thanks to this video, I went from AC straight to Sr. Partner. 👌

[@lindazhang8004]

nice one. congrats ! usually do they hire ppl comes from an education background that is not super attractive compares to the ones who has a MBA for example ?

[@veraczuz]

Why you multiply with 1.4 and 1.3 ? then it basically means that we first did the marketplace move and get the effect than we execute complementary item move.

[@raphibro9284]

Great video! But please could you improve the sound quality for upcoming videos. During the case interview it was at times very difficult to understand acoustically. That would be amazing! Thanks.

[@raghum23582]

Very comprehensive approach to the case .. only contention I have is why did u compound the 30% and 40% growth. It would seem that both those percentages are from same base so adding them to overall 70% growth would make more sense... unless I am missing something

[@CraftingCases]

Hey Krutivas, I have assumed that we would sell the new product categories in the new channel as well, not just in the old channel, hence the compounding. I should've made this explicit for clarity, but the important thing is that if the interviewer had asked me about that, I would be able to justify. In case the interviewer had told me that they are NOT going to sell the new product categories in the new channel, then I'd recalculate and reach the new number. The key point, though, is that the difference would be small enough (12%), and the overall CONCLUSION of the case would still be the same. This is key to understand - the conclusion/recommendation is what drives the calculations and analyses, not the other way around.

[@japanboy31415]

great video, but i wish there was less echo in the audio

[@xxxgabaxxx]

"tá ok..." Te peguei Bruno! Sabia que era Brazuca! To preparando pra uma entrevista com o BCG em Chicago agora, Knowledge Team não consulting

[@SAGNIKBANERJEE193]

When the point about the branding of website is raised & he said it's not really measurable, the thing that pops in my mind - A/B testing. I think that is one very good way of measuring the effectiveness of website branding / changing the look of a website & if it is actually working in driving more traffic / influencing sales. I agree with rest of all the points that he makes :)

[@CraftingCases]

Hey Sagnik, that's a great point but I disagree. I agree you can A/B test the WEBDESIGN, but branding is something that runs much deeper. Take Coca Cola, for example - their branding is on their packaging, it's on decades of TV commercials and jingles associating them with family and joy, and it's on the fact that you KNOW you'll find it everywhere (which has dramatic impact in their distribution and bottling strategy). Or take Amazon, as we're talking e-commerce here. Their branding relates to how you'll find EVERYTHING for CHEAP and get it delivered QUICKLY. A lot of companies claim that in their website, only Amazon delivers it. Other companies don't deliver on it because it took Amazon years to develop the IT systems and logistical infrastructure to be able to do that. Can't A/B test it. And if you're looking for something simpler, I could mention Lululemon. It took them years and years of clothing R&D to be able to say "Breathe easy" on their website and be credible. So yes, you could A/B test the design and the copy of the website. But that's just the tip of the iceberg of branding.

[@SAGNIKBANERJEE193]

Nice poin. I agree. But just one last point / a query rather. For a relatively new start-up, isn't Branding mostly synonymous to website design? Suppose they are at a point where they are using single channel marketing strategy - their website. Because I read somewhere in the initial days, that's how sites like Amazon perfected their branding... They would A/B test a simple thing like add to cart / buy now button And that's how with multiple successful iterations of things that worked, did they come up with their current version. P.S - I am just stepping into this world of consulting & these guiding comments from veterans like you is appreciated 😀

[@JL-qf3hq]

Chipping in here- great, authentic interview video! Brand value can be approximated by marketing research tools such as conjoint analysis. Example could be quantifying value perception on exact same shoe with one being Nike and the other off brand. Multiple brand comps can tease out relative brand perception and brand contribution as relevant to the sample surveyed. Expect different customer segments to value brand differently. 2 cents.

[@parthaggarwal1932]

It's a great case interview. An important question: How did he come up with such detailed relevant questions under three minutes?

[@CraftingCases]

Go through our free course and you'll find out :) (craftingcases.com/freecourse)

[@adilbekrustemov1518]

Attractivness is always personal, as it depends on one's rational opportunity cost ($1.000.000 of annual net income from bed & bath business might be attractive for me, but not for someone who is doing $2.000.000 let's say on Wall Street) & emotional preferences. I would probably emphasize it in the very begining in order to make case solving more comprehensive. In addition, I think 2nd and 3rd points are actually subcomponents of the 1st one. Generally, I think there should be two main points - How much money he can make now? And how much money he can make in the future? And the rest parameters are subpoints, except for the 4th point, which can be found out only by giving the above information to that person who asked this question and asking him whether it is attractive for him as you cannot assess someone's opportunity cost and emotional preferences.

[@rectilon4233]

Augmented Reality and Unorthodox marketing campaigns can also be a few possible solutions. I think he already mentioned it but collaborations with furniture stores is a really prospective solution.

[@irsmohsen4833]

it is advised to add a "next step" part to your final recommendation. in this case I kinda don't know what next steps should we take

[@michkelmariegaard1761]

Regarding the market share projection (the analytical part), it isn't correct to say that the expected increase in sales translates directly into a corresponding increase in market share, since the total sales of the industry would also grow... Thus, the future market share will be sligthly less than the calculated value - right?

[@faizradityoa6866]

Great Video! Btw where did the marketplace effect (1.4) and new product categories effect (1.3) come from?

[@zedo15]

the percentages of growth given by the interviewer

[@ibukunzoeolawepo]

I also had a problem with this. I expected 0.4, 0.3. I wish this could be clarified

[@deniselau6666]

In 24:49 is it better to calculate by logic to demonstrate understanding of math, or vertical multiplication is fine? Since I'm able to find the answer a lot more quicker using the latter method. Can anyone enlighten me?

[@Karjakin_]

Congratulations guys. Incredibly helpful. But I think there is something that needs to be clarified. To the question asked in 21:30, I would aske if the increase in sales caused by those levers affected the other competitors or in the other hand if they are 100% new sales. Because this fact changes the result. In the case the increase of sales comes from the decrease of competitors sales, then the answer is correct, because the global market doesnt change. But if the market expands as a result of our new strategy, then the final market share is different. For example, if the Total market in year 1 is 100M, we got 12% of that (12M). With our new strategy, we increase that number to 21.84M (calculated as in the video), but the global market also increased, it passed from 100M to 100+21.84-12 = 109.84M. So our final Market share is 21.84/109.84 = 0.1988 = 19.88% We could also calculate the final number in terms of the percentage of the new sales origin. Please, note that the numbersI chose are just to make the calculus easier, but it is all about the percentages, you could try any number and the result will be the same. Apart from that, great great video.

[@SurvivingAnotherDay]

I have an industry analysis case study for a private equity internship and I'm so nervous

[@flapclap]

Hey there! How did you go? Could you tell me what sort of resources you used to prepare for the PE application?

[@igorstamborowski9354]

Do more videos like this!!

[@kshitizkhandelwal9348]

You should put out more videos.

[@onedirectionlover317]

Thanks! Just to clarify what the question is asking, why did we calculate the growth with 12*1.4*1.3 and not 12*1.7?

[@Han-ve8uh]

I got confused there too. This calculation assumed the 1.3 effect of new product is 1.3 no matter what other changes happen (even if the multiplied base is changing). It is mentioned at 22:33 why he compounds(multiply sequentially), because these new products will be applied to new marketplaces too, so the 1.3 effect applies to both new products in old market and new products in new market, not just the former. Additionally not mentioned in the video, they assumed that both 1.4x and 1.3x effects compound on top of the 80% growth in e-commerce of bednbath.

[@Jaja1499]

Hey! Thank you so much for the video and your wonderful practice material. Quick question: Concerning the framework in the beginning: Would in that case I be able to convince my interviewer (McK) with a 3 Cs framework that covers pretty much the same points you mentioned? My worry is that I feel super comfortable with the 3Cs framework and it does work. But compared to your unique structure+wording it does look kind of generic. I'd be happy to hear your take on that!! Best regards from Germany

[@CraftingCases]

The 3Cs does work (though not in all situations) as long as (1) it's adapted to the specific case (which often involves thinking of other categories), (2) it has all/most relevant issues and (3) you can articulate hypotheses within the framework. More details on when and how to use it in the Frameworks section of our free course.

[@Jaja1499]

@@CraftingCases Thank you!

[@khaledoozeer384]

Really helpful and professional interview, one question I have is - There was no stating of a hypothesis at the start. Is this not essential to show to an interviewer that you are taking a hypothesis driven approach not a framework driven approach? Is a hypothesis a key part of demonstrating you have clear problem structure. Is there any point of an issue tree if you have no hypothesis to test it with ?

[@marcoreus7146]

Khaled Oozeer I'm guessing it's because he was trying to determine whether the market is attractive (pretty general question) and there are many factors that would need to be tested, not one specific thing like you would hypothesise initially in a profitability problem (where there would be 1-2 things you need to isolate to get to the root of the problem)

[@kartikayjoshi627]

This is such a great video. However, a quick question - Could this case be solved by doing Porter's 6 force industry attractiveness as it gives a fair idea on competition, supplier, buyer, complements and substitutes?

[@fernandahuerta113]

I think the way he did the math took more time than doing the actual multiplications. Great Video BTW

[@CraftingCases]

Glad you liked it! About the multiplications... They’re not hiring who multiplies the fastest. They’re hiring who can show a broad range of skills in the alloted timeframe :)

[@lisanation2203]

Binge watching as I have an interview tomorrow....... Pray for me

[@jermaine2712]

You guys remind me of 2 football players, Bernardo Silva and Alisson Becker.

[@Heckerschee]

Regarding the sales increase: Can you really just assume that the two increases (marketplace and complementary products) are compounding? Or does this depend on how the analyses was performed? Perhaps the complementary products won't be recommended in the same way on amazon marketplace, so the 30% growth might not apply to the sales through amazon marketplace

[@aapris1986]

Great video! Can you please suggest where can I find more cases (books/videos/etc)?

[@CraftingCases]

Good sources are our article on the best case interview examples (just Google "case interview examples crafting cases"), the websites of consulting firms themselves and casebooks from MBA programs (you can google for "wharton casebook" or "kellogg casebook")

[@nidp9791]

Great video

[@Dreamzstatus]

Hello Julio and Bruno. Can we use Porter's Five Forces Model to check Industry Attractiveness?

[@CraftingCases]

You can, but: 1) Porter’s model just looks at industry PROFITABILITY (especially shifts in it), not size for instance. 2) The model is better used in terms of SHIFTS in profitability. For current profitability it’s better to simply get data. 3) Most candidates have no clue about how to use it in practice and start speaking with so much jargon and so little concern to what to do in practice and how to prioritize and test those hypotheses that they sounds like an academic and can’t move forward with the case. Because our point number 3, I wouldn’t recommend using that.

[@alirezashahin2567]

Hi, I would like to start by saying how much I love these videos. I only have one question regarding the market share calculation. if we are selling other catergories of products( silverware, furniture, ect.), should we factor that in our market share calculation? aren't those sales considered part of another sector?

[@Jay-gs7sp]

Hi there. I had the same concerns. Neglecting the 80% denotes that you aren't affected by the organic market growth

[@KellnerChristian]

Regarding the math at the end. Is it correct to assume that the multiplier only hits after the second year market share? Why would we only go about implementing the two levers at the end of the two years? So in my opinion, the 1,82 should apply to the initial sales at the beginning of the two year span, leading to... Company growth: Current sales: x 1,4*1,3*x+0,8*x=2,62x Market growth: Current sales=y 1,8*y=1,8y New market share 2,62x/1,8y X/y=12% 2,62/1,8*12% 1,45*12%=17,46% Would this also be correct? In the end it depends on the assumptions regarding to when the multiplier applies. Best regards, very helpful video!

[@CraftingCases]

Hey Christian, It would definitely take some time to implement the two changes (new channel and new product categories) after our friend acquired the company. How long? Is it 2 whole years? I don't know - and in a real project, you'd probably estimate that for each action as well, and apply the growth accordingly. You'd certainly need a spreadsheet to do that, so I wouldn't worry about it in a case interview, which means that there is no ONE right and wrong timing to implement the change. I just picked 2 years because it felt reasonable and it was easier to work with the numbers. If you want to pick something else, make sure you justify to the interviewer. I think you'd be challenged by most interviewers if you assumed implementation of those two changes was instant, but somewhere in between would probably be fine. Now, one interesting thing about your calculations is that it doesn't consider that the new channel and the new product categories are gonna grow at all. I think this is the key mistake I'd be concerned with. I don't know if the new channel and the new product categories are gonna grow at 80%, more than 80% or less than 80%, but I do know it's unlikely these will remain stable. I'd have done a better job in the case had I asked that, but you can't just ignore that markets and channels grow. Hope this helped! Bruno

[@cartman4209]

This is a nice video! Do you have any book recommendations about cracking case interviews? I have an upcoming interview and I would like to prepare

[@CraftingCases]

I wouldn’t say a book is the best tool to learn cases, just as reading a book on basketball won’t help tou learn to play the game very much. If I were to recommend a book, it would be Victor Cheng’s Case Interview Secrets - it’s pretty good, although you can find most of the content in his KZbin lectures. I would stay well away from Case in Point and Crack the Case as I’ve notice these tend to do more harm than good. Our free course (which you can find in our homepage) is a strong substitute and/or complement to any of these options, too, and it’s all in video, which is a more natural format to learn cases.

[@Han-ve8uh]

@@CraftingCases Could you share why Case in Point and Crack the Case do more harm? (I haven't gone through them)

[@faisalalmuhawes6701]

​@@CraftingCases I am currently reading this book, and I searched here to see a practical example of what he is explaining. He is emphasising that one should first state his hypothesis before explaining the structure. For example, question: should company A acquire company B? what he is saying is that we should first say yes/ no and use the structure to prove/disprove our hypothesis. The candidate did not do that in this video, and I have seen many other interview examples and none of them used that way of opening, which makes me feel that I have not fully understood what he is trying to explain! What do you think?

[@arvindcv7943]

May i know Whats Bruno's Designation post interview please. He seems pretty smart. God bless

[@sailu112]

For increase in sales, also identifying pain points for the existing customers and making the process more seemless for existing customers will also increase new customers

[@emmacheung9018]

good logic, unbelievable math skill

[@luhental]

LOL* all Asians watching 22:30 cringing in pain. 13x13=169, 169+13=182...why did he need a pen for that?

[@ceciliaw1065]

@@luhental yep😂

[@hannahedinhillberg4189]

Is three minutes to structure a solution framework not a pretty long time - is it perceived as normal and accepted ?

[@VisiSaujadani]

The most interesting part is that Bruno in this video is similar to Bruno Fernandes in Man United

[@furqan6958]

looks more like bernardo silva :D

[@toshkapoor2717]

WTF!! 😂

[@Namonness]

looks more like Marlon Teixeira (google him)

[@riotang785]

I have a question! 9:30 ish the question asked seems slightly odd to be asked. In what cases would customer loyalty be bad, or was Julio just trying to get an explanation out of Bruno? Thank you!

[@gabrielrib]

I believe he asked about customer loyalty in that specific market. Since Bruno's friend is going to be a new entrant in the bed&bath e-commerce market, if the customers are very loyal, it's going to be hard for him to acquire customers as a new player. Hence, in that case, a pretty high loyalty would not be good...

[@shantanuchauhan8376]

First question is wether the logistics division is owned or third party. Third party is profitable

[@joaopedroreissilva7075]

Really good!

[@harryweitzel2275]

Where did her get 1.3 and 1.4 as multipliers? Did he choose his numbers or are those known multipliers?

[@aldenqrnz]

Im so mesmerized how the discussions here are unique compared to what i get on college. Im taking major in business management and i want to be a good analyst that can improve my business in the future. Do you have any tips or books recommendation for me to read to be this informed. Because honestly when i read these comment, i would not imagine to come out with similar critical thoughts. Thanks and i hope to hear a reply from you.

[@CraftingCases]

Hey Alden, so glad you liked it! I think the #1 tip is to learn to think in a structured way. You use our free course to learn that (even if you have no plans to going into consulting, it'd be useful to you). Learning this skill will help you interweave many concepts you'd learn in college or elsewhere together, which really is the key to have in-depth discussions that connect the dots between different subjects. It's more a practical skill than something you learn from a book, though. You have to put it into practice. Once you learn this skill, every concept and practical knowledge about business that you learn (from books or articles or experience) will make more sense to you and you'll be able to use it in more situations. I don't think it's about "getting more dots", but learning "how to connect the dots" better. Does this make sense to you?

[@aldenqrnz]

@@CraftingCases thanks for the reply and yes it does make sense, Im new to the channel, is the courses that we re talking about can be accessed in this channel? Or do i have to go to another link?

[@CraftingCases]

We offer a free course on the fundamentals of case interviews in our website - you can find it at craftingcases.com/freecourse It will teach you how to structure your thinking even if you’re not going to interview in consulting firms (we have created it with a focus on the interview, but we’ve had some people use it just to become better problem solvers in their jobs and they (and their bosses) saw a lot of results). Hope you enjoy, let me know via email how it goes!

[@veraczuz]

And also the increase in our sales will also increase the market as well. we increased our share around 10 percent, this 10 percent increase should be reflected to whole market (10 percent/12 ) otherwise it should be defined as our growth will not specific effect on whole market size.

[@stinkykitten]

I think Julio cross questioned how customer loyalty would affect attractiveness of the market because if customer loyalty was high, it would be harder to pull customers away from existing businesses and hence harder to grow your customer base

[@NickLiang]

Yeah I thought so too. It will depend on how saturated the market is and whether there is enough differentiation to target a different demographic.

[@rosanerehal4616]

Hello guys. First of all, thank you for these more than helpful videos. Second, I'd like to know what you are doing now? since you both are not working at Bain and Mckinsey anymore.

[@CraftingCases]

Hey Rosane, we're working full time with Crafting Cases on helping candidates with case prep. We're mainly working on other content channels now and on creating/improving our courses (one of them is free, but it's as helpful/complete as a paid course, so I really recommend you start with that one).

[@peoples_opinon]

Damn, sounds like a real consultant - no experience of doing, only experience of advising. If interviews are like that, probably MBB and big4 advisory departments are useless.

[@diaelamiri3427]

For the first case, my mind went directly to the five forces of Porter. Can that also be concidered a good answer ?

[@amoghjain1166]

Can I use Porter 5 forces here to build structure for attractiveness? (Structure 3: Conceptual)

[@CraftingCases]

It’s a really tricky one because it’s too theoretical. I always use elements of it, but prefer to organize in some other way that is more conclusive. You can potentially to through a whole porter analysis and in the end have no answer and have spent the last 40 minutes regurgitating buzzwords. I personally think it’s really risky, though you could do it, sure

[@lenniecarter1242]

Hi guys, do you have a video about reading and giving great insights on complicated exhibits?

[@CraftingCases]

Hey lennie, we have a module on that in our free course. There are even some exercises you can do there! Just check out our website at craftingcases.com/freecourse

[@fafnirium]

Thanks, great video. But would this framework stand a Toothbrush Test?

[@BalerionRS]

The customer loyalty response at 10:30 seemed sub par. Full disclaimer: I haven't yet watched past that. Customer loyalty is primarily a function of the customer's own behavior and secondly a function of how you treat them (customer service, price and product differentiation, etc). We can assume customers are either "recurring" (have purchased home goods items before) or "non-recurring" (new customers breaching the marketplace) to the broader market .If we assume that customers are inherently loyal and sticky, then it is a problem because that would make it increasingly more difficult to capture already "recurring" customers (they may be loyal to a different company). If we assume the bulk of the customer pool is "non-recurring" then that means you'll be able to capture them more easily and keep them on with brand loyalty, but it will be more difficult to cross sell to them since they are new to the market altogether.

[@100Hasake]

At the end he said "I can't say if we can acquire it", I thought we shouldst say that due to giving inconclusive statements. Shounldn't we just say "Based on these initial findings, I think you should ... "

[@chayanontpotawananont9317]

one quick question. I'm curious in "market share question part" if I assume the total market worth 100B our market share will be 12B. and others are 88 B. our share grow to 12*1.3*1.4 =~ 22B. while assume others competitor remain the same at 88B. (neglect 80% growth which affect both of our company and the competitors) so our share should be 22/(22+88)*100 which is 20%. am i missing something??

[@ricardolonghini960]

You should not sum 22 with 88 for the future total market, as the market grows only 8% in total (If our firm grew more than that, some other firm grew less to account for an average 8%), you should instead use 100. Our share should be 12*1,4*1,3*1,08/(100)*1,08 = 12*1,4*1,3/100 = 22/100

[@zhengzhiyang7234]

Thanks for the real feel of the case interview. One doubt on the market share calculation, since the new percentage is 21.84%, and assume the rest does not change, should the new market share be calculated as 21.84 / (100 - 12 + 21.84) = 19.88%?

[@JoseGutierrez-dg2lk]

I think you are right. I was thinking the same.

[@morkujinirukandji4820]

You are right. What they did was wrong