This is a structured market entry case that tests candidate understanding of profitability analysis, market sizing, and strategic decision-making. The case provides detailed financial exhibits and customer data, requiring candidates to synthesize information across multiple dimensions including cannibalization risk, competitive positioning, and investment return calculations.
Our client, Classic Bookstore (CB), is a traditional bookstore chain in Spain, specialized in non-technical books. CB’s revenue has stagnated for the past 3 years, with a stable and loyal customer base. Now, as part of its new growth strategy, CB is considering whether to enter the electronic books market.
The client is considering to sell a CB branded reading device and develop a website to sell e-books for it.
Our client asked us to analyze this opportunity and provide a recommendation.