Technology cases now represent approximately 25% of consulting interview questions, up from under 10% five years ago. As every major firm has expanded its digital and technology practice, interviewers expect candidates to be fluent in tech business models, unit economics, and platform dynamics.
Three Business Models You Must Know
Tech cases revolve around distinct business models, each with its own economics and strategic logic. Misidentifying the business model leads to a flawed framework from the start.
| Business Model | Revenue Mechanism | Key Metrics | Strategic Focus |
|---|---|---|---|
| SaaS | Recurring subscriptions (monthly/annual) | ARR, churn rate, LTV/CAC, net dollar retention | Reducing churn, expanding within accounts |
| Platform/Marketplace | Transaction fees, take rate | GMV, take rate, liquidity, buyer-seller ratio | Solving chicken-and-egg, building network effects |
| Hardware + Services | Device sales + service subscriptions | Device ASP, attach rate, service margin | Ecosystem lock-in, growing service revenue |
In our experience coaching candidates, the most common mistake on tech cases is applying a generic profitability framework without first identifying which business model is at play. A SaaS company losing money while growing 80% year-over-year is fundamentally different from a declining hardware manufacturer with the same bottom line.
Common Tech Case Types
Based on our analysis of technology cases in the case library, five case types dominate:
- Go-to-market strategy – Launching a new product or entering a new segment. Requires understanding of target customer, pricing model, and distribution channels.
- Pricing optimization – Setting or restructuring pricing for a SaaS platform. Involves value-based pricing, tier design, and willingness-to-pay analysis.
- Digital transformation – Helping a traditional company adopt technology. Focuses on build vs. buy, implementation roadmap, and change management.
- Tech M&A evaluation – Assessing whether to acquire a technology company. Combines strategic rationale with valuation and integration planning.
- Platform monetization – Determining how a platform with users but limited revenue should generate income. Tests creativity and understanding of network effects.
For deeper practice with pricing scenarios, see our pricing strategy guide.
Tech Metrics That Impress Interviewers
Dropping the right metric at the right moment signals genuine tech fluency. Here are the benchmarks that matter:
- LTV/CAC ratio: A healthy SaaS business targets a ratio above 3x. Below 1x means the company loses money on each customer.
- Net dollar retention (NDR): Top SaaS companies achieve NDR above 120%, meaning existing customers spend more each year even without new sales. Below 100% signals a churn problem.
- Gross margin: Software companies typically operate at 70-85% gross margins, far above hardware (30-50%) or services (40-60%).
- Rule of 40: Growth rate plus profit margin should exceed 40% for a well-run SaaS business. This helps you assess the growth-vs-profitability trade-off.
- T2D3 growth pattern: Elite SaaS startups triple revenue for two years, then double for three years after reaching $2M ARR.
When you encounter these metrics in a case, use them as diagnostic tools. If NDR is 85%, that immediately tells you the company has a retention problem worth investigating before looking at new customer acquisition.
Structuring a Tech Case: Step by Step
When you receive a tech case, follow this sequence:
- Identify the business model – Is this SaaS, marketplace, hardware, or hybrid? This determines which metrics and frameworks apply.
- Map the value chain – Who are the users, who are the customers (they may differ), and what is the monetization path?
- Assess unit economics – Are they acquiring customers profitably? What does the cohort analysis look like?
- Evaluate competitive moats – Network effects, switching costs, data advantages, or brand?
- Consider the growth lever – Expansion within existing customers, new customer acquisition, new markets, or new products?
This approach works for growth strategy cases across the tech sector. For M&A scenarios, add a valuation and integration layer on top.
Key Takeaways
- Technology cases represent roughly 25% of consulting interviews; fluency in tech business models is now a baseline expectation
- Always identify the business model (SaaS, platform, hardware+services) before building your framework – the economics are fundamentally different
- LTV/CAC above 3x, net dollar retention above 120%, and the Rule of 40 are the benchmarks that signal a healthy SaaS business
- Tech cases test whether you can distinguish between “losing money because of poor economics” and “investing in growth with strong unit economics”
- Platform cases require understanding network effects and the chicken-and-egg problem; generic supply-demand frameworks fall short
Sharpen your tech case skills by practicing with technology industry cases in our library, or run a full simulation with an AI Mock Interview focused on tech scenarios.