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Medium Market Entry New Product Launch International Expansion

Kellogg in India

#Government & Public Sector #Education #Higher Education #Management Education
ProHub Comment

This is a comprehensive market entry case that tests both quantitative (market sizing, breakeven analysis) and qualitative (brand impact, strategic risks) thinking. The case requires candidates to build a structured approach to evaluate the attractiveness of the Indian MBA market, calculate whether the business can achieve the Dean's 4-year breakeven objective, and assess whether the financial opportunity outweighs strategic brand and ranking risks.

Estimated Time 15 minutes
Difficulty Medium
Source Kellogg
50 / 100
Our client is the Dean of Kellogg School of Management. She has hired you to advise her on an idea, which struck her during the previous week – To consider starting a satellite campus of Kellogg in India. She has asked you to determine whether Kellogg should enter the Indian market.

Clarifying Information

  1. Strategic Rationale: India is a fast growing economy with huge demand for MBAs. Kellogg’s Dean believes that an India campus would help Kellogg become a Top 3 global MBA program. The caliber of India candidates is the same as in the US.
  2. Objective: The Dean wants the satellite campus to breakeven in 4 years
  3. Competition: Eight top-tier business schools: 7 IIMs and the ISB (ISB has a partnership with Kellogg, for its pedagogy).
  4. Candidate selection: IIMs select based on CAT test results. The ISB admits candidates based on the GMAT.
  5. Pricing: Indian MBAs cost $20k per year (US MBAs cost $70k). Indian schools don’t offer scholarships but banks offer loans.
  6. Product: Kellogg would only launch the 2Y MBA program in India.