How to Answer: Your client is considering entering a new market. They have a choice of buying an existing company, or developing the technology in-house. What approach would you take about advising them on making the best business decision?
Advice and answer examples written specifically for an Avanade job interview.
13. Your client is considering entering a new market. They have a choice of buying an existing company, or developing the technology in-house. What approach would you take about advising them on making the best business decision?
How to Answer
In this case, Avanade wants to assess your business consulting knowledge of mergers and acquisitions, and if you're qualified to advise them on entering into a new market which they may not be familiar with. It's best to start with your knowledge of Mergers and Acquisitions, and how you advised companies in a similar situation. Highlight the risks and rewards involved in such an endeavor, and use a case study to prove your point. They may also want to pick your brains and get your opinion on whether it makes more business sense to acquire a company with a complementary product or develop a new product.
Written by Tom Dushaj on February 5th, 2019
1st Answer Example
"Mergers and Acquisitions were big in the late 1990s, and that's the first time I was part of a merger/acquisition deal. It taught me a lot and made me the consulting professional I am today. The consulting approach I took was to look at the business drivers, and what the company wanted to achieve financially. It was important for me to understand what their plans were to scale that particular product line, and what the branding campaign was going be. I conducted research for both scenarios, and presented my findings in the form of a report with my recommendations, and how I arrived at my recommendations."
Written by Tom Dushaj on February 5th, 2019
2nd Answer Example
"When I'm consulting a client about entering a new market or acquiring an existing company, I look at a number of different things to determine whether developing a new product internally, or acquiring a company that compliments their existing product line up is the right decision. I typically go through a series of questions to better understand their business motives. Here's a list of questions that I would ask:
1. Current state of manufacturing capabilities - are they able to produce a similar or better product at quantities that will be competitive?
2. Is there a market for this new product?
3. Research the competition - who owns the majority of the market share
4. Is this product seasonal or sold year-round?
5. Do they have internal expertise to develop a new product?
6. Are there any laws or legislation that would restrict or prevent the manufacture of that new product outside the US?
7. What the market plan to scale this product?"