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Growth strategy cases: a framework for finding new revenue

A framework for growth strategy case interviews: existing customers, new customers, new products and acquisitions, with sizing maths and an example. 6 min readUpdated By the Prepper team

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 growthOptionsSpeedRisk
Existing customers, existing productsPrice, purchase frequency, basket size, less churnFastLow
New customers, existing productsNew regions, new segments, new channelsMediumMedium
Existing customers, new productsAdjacent products, services, bundlesMediumMedium
New customers, new productsNew businesses, acquisitionsSlowHigh

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.

OptionMathsExtra revenue
Raise prices 4%€100m × 4%, assuming volume holds€4m
Loyalty app: one more visit a month from 10% of customersSized at about 5% of sales€5m
60 new shops at €0.5m each60 × 0.5€30m
Sell beans in supermarkets2,000 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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