Growth strategy cases: a framework for finding new revenue
A growth strategy case asks how a company can increase revenue, usually by a stated amount in a stated time: "double sales in five years". The trap is listing ideas. The interviewer wants options that are sized, compared and chosen.
The framework
| Source of growth | Options | Speed | Risk |
|---|---|---|---|
| Existing customers, existing products | Price, purchase frequency, basket size, less churn | Fast | Low |
| New customers, existing products | New regions, new segments, new channels | Medium | Medium |
| Existing customers, new products | Adjacent products, services, bundles | Medium | Medium |
| New customers, new products | New businesses, acquisitions | Slow | High |
Work from the top down. Growth close to the current business is cheaper and more certain.
Size every option the same way
Revenue = customers × purchases per customer × price.
For each option, say which of the three it changes and by how much. Then compare options on four points: size, cost, time and whether the company can do it.
Worked example
A coffee chain with 200 shops and €100m of revenue wants €150m in three years.
| Option | Maths | Extra revenue |
|---|---|---|
| Raise prices 4% | €100m × 4%, assuming volume holds | €4m |
| Loyalty app: one more visit a month from 10% of customers | Sized at about 5% of sales | €5m |
| 60 new shops at €0.5m each | 60 × 0.5 | €30m |
| Sell beans in supermarkets | 2,000 stores × €5,000 | €10m |
Together that is €49m, which reaches the target only if everything works. New shops deliver most of it, so the recommendation depends on whether 60 good locations exist and can be funded.
Mistakes
- Jumping to new countries or acquisitions before checking price and existing customers.
- No numbers on the options.
- Ignoring what limits growth: cash, people, sites, supply. In the food bank case, supply and site capacity decide the answer, not demand.
Frequently asked questions
What is a growth strategy case?
A case in which the client wants to increase revenue, and you must find, size and prioritise the options.
What framework should I use for a growth case?
Split growth into existing or new customers and existing or new products, then size each option as customers times purchases times price.
How is a growth case different from a market entry case?
Market entry tests one option in depth. A growth case compares several options, of which entering a new market may be one.
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