This case tests market entry strategy and financial analysis capabilities. The candidate must evaluate market opportunity, competitive positioning, profitability projections, and strategic fit while identifying key risks including cannibalization. Strong candidates will conduct structured market sizing, calculate returns on investment, and propose mitigation strategies for identified risks.
Our client, Classic Bookstore (CB), is a traditional bookstore chain in Spain, specialized in non-technical books. CB revenues have stagnated for the past 3 years, with a stable and loyal customer base. Now, as part of their new growth strategy, they are considering whether to enter the electronic books market.
The client is considering selling their own reading devices and developing a website to sell the e-books for this device.
Our client asked us to analyze this opportunity and provide a recommendation.