(Updating) Consulting Cases - New Market/M&A

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Analysis

Industry: if it is a good business to be in general

  1. Market size and dynamics (capacity, distribution, market saturation, rate of market growth)
  2. Sustainability of profits
  3. Competitive position and likely competitive response. Cost structures
  4. Product differentiation and standards. Substitutes.
  5. Price dynamics.

Your firm: core competencies and synergies.

  1. Revenue synergies with or cannibalization with existing products.
  2. Distribution costs and ease of access to distribution channels.
  3. Cost of capital, given the risk of the investment
  4. Potential economies of scale and learning curve issues, particularly with respect to competition
  5. Cost synergies
  6. Increase on complexity costs
  7. Alternative uses of investment.
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