(Updating) Consulting Cases - New Market/M&A
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Industry: if it is a good business to be in general
- Market size and dynamics (capacity, distribution, market saturation, rate of market growth)
Sustainability of profits
- Competitive position and likely competitive response. Cost structures
- Product differentiation and standards. Substitutes.
- Price dynamics.
Your firm: core competencies and synergies.
- Revenue synergies with or cannibalization with existing products.
- Distribution costs and ease of access to distribution channels.
- Cost of capital, given the risk of the investment
- Potential economies of scale and learning curve issues, particularly with respect to competition
- Cost synergies
- Increase on complexity costs
- Alternative uses of investment.