Diabetes Testing Meter
Practice this intermediate market entry case interview question in the Healthcare sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This is a well-structured market entry case that tests candidate ability to build a financial model and recognize that market size constraints make profitability impossible. The case forces candidates to identify cannibalization risks and think creatively about alternative strategies when the primary market is unfeasible.
Estimated Time
26 minutes
Difficulty
Medium
Source
UCLA
19
/ 100
Our client is a laboratory that provides diabetes testing services to hospitals in the UK. They have developed a self-diagnosis meter that patients can use to do testing on their own. They have hired us to determine if we should take this product to market.
Clarifying Information
- UK Population is ~60M
- 30% of people have diabetes
- 5% > 65 have diabetes
- 20% population is > 65
- No growth in % or population
- 4 competitors
- Market share 25%, 25%, 15%, 15%
- Client has 20% share
- Growth was 20% until two years ago
- Growth since is flat
- Fixed cost is $25M
- Marginal Cost is $20
- Per Unit Revenue is $25
- Patients could opt to use both methods
- Product could be promoted as a prevention device (low cost option for testing diabetes)
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