This case tests both quantitative analysis and strategic reasoning. Candidates must calculate transportation costs and profitability across two regions while balancing hard numbers against qualitative factors like existing customer relationships and market dynamics. The core tension—higher costs but existing customers in APAC versus lower costs and higher prices in EMEA—forces candidates to articulate a clear value proposition for their recommendation.
Your client is GasCo, a US-based natural gas company. In the last year, natural gas prices in the US have declined while prices in APAC and EMEA have increased. GasCo currently has managed to develop a new way to transport gas. The new technology significantly lowers the cost of transportation. Due to the new technology, GasCo would like to expand in the global market. GasCo would like to know if they should enter the APAC, EMEA, or both regions?
APAC - Asia Pacific & China
EMEA - Europe, Middle East, and Africa