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Medium Market Entry/Sizing

GreenShield Health Insurance

#Financial Services & Insurance #Healthcare
ProHub Comment

This is a well-structured three-part market entry case that tests market sizing, financial analysis, and channel economics. The case requires candidates to build a framework, work through quantitative breakeven calculations, and synthesize findings into a strategic recommendation while identifying key risks.

Estimated Time 26 minutes
Difficulty Medium
Source Chicago Booth
18 / 100
Your client is GreenShield Health Insurance, or GHI. They are a health insurance company that wants to expand into Florida. GHI wants your help creating a business plan for this venture to see if it makes sense to enter this market.

Clarifying Information

  1. Before allowing the candidate time to write out a framework, have a discussion about the important facets of a business plan and what one would need to believe to enter this market.
  2. The candidate would ideally touch upon market attractiveness, customer identification, and distribution channels. For the next portion of the case, guide the candidate through each of the dimensions and allow them to come up with a separate mini-framework for each.
Mock Interview
Interviewer

Your client is GreenShield Health Insurance, or GHI. They are a health insurance company that wants to expand into Florida. GHI wants your help creating a business plan for this venture to see if it makes sense to enter this market.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
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GreenShield Health Insurance seeks to enter the Florida market. The case tests whether entry is viable through market attractiveness analysis, breakeven calculations showing only 0.8% market share needed, and channel selection analysis revealing agents as the most profitable distribution method.

Key Insights:

  1. Market sizing requires segmentation of addressable audience (uninsured who can afford insurance: 360,000 + unhappy insured: 1,440,000 = 1.8M target audience)
  2. Breakeven analysis: $2M investment ÷ $50 contribution margin per policy = 40,000 policies needed, representing only 0.8% of 4.8M insured market
  3. Channel profitability calculated as (# leads × yield × revenue per sale) - (# leads × cost per lead): Agents ($1.95M) » Call Center ($200K) » Direct Mail ($100K) » Internet ($75K) » Billboard ($0)
  4. Key risks include unknown market trends, unclear existing direct sales capabilities, and uncertainty about channel-segment alignment