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Medium Market Entry

Apple of My Eye

#Food and Beverage #Food & Beverage
ProHub Comment

This is a math-heavy market entry case requiring candidates to evaluate a product expansion decision using revenue calculations and break-even analysis. The case tests operational thinking (production capacity constraints), financial modeling (revenue impact analysis), and strategic considerations (market demand, cannibalization, competitive positioning).

Estimated Time 15 minutes
Difficulty Medium
Source NYU
50 / 100
Bob is a master brewer and has been brewing beer for the past decade. Upon graduating from Stern, he opened a brewery on the Upper West Side called Something Witty that features Belgian Witbier styled brews. While he found early success, he has noticed an increase in customers asking for gluten-free alternatives, such as cider. Bob has hired us to help him analyze his options.

Clarifying Information

  1. Bob’s goal is to continue to be profitable regardless of what expansion opportunity he explores
  2. Currently, Bob only sells bottled beer direct to consumers.