Market entry consulting case interview: Dental company analysis (w/ ex-Bain and EY consultants)

🎥 Here's a consulting case interview featuring an ex-EY Parthenon Consultant & ex-Bain Manager focusing on a market entry case that tests the candidate's ability to analyze complex business situations, identify issues, and recommend strategic solutions for a new product. The candidate has been brought in to address various aspects related to the dental practice management company and its denture financing process.
Watch Ben Wilson (ex-EY Parthenon Consultant) run Ashwin Shetty (ex-Bain Manager & ex-Deloitte Director) through this consulting case interview.
🎬 Video Sections:
00:00 About the case
00:51 Introductions
01:12 Case question
02:53 Structure
07:04 Charts & data
19:50 Brainstorm
21:50 Quant
24:20 Synthesis
🚀 Prepping for case interviews? RocketBlocks has the best concepts, drills, and coaching to get you more consulting offers: www.rocketblocks.me/consultin...
➡️ Book a 1-on-1 coaching session with Ashwin here: www.rocketblocks.me/contribut...
➡️ Book a 1-on-1 coaching session with Ben here: www.rocketblocks.me/contribut...
#consultinginterviews #bain #operations #EY #caseinterview

[@buscochamba]

Would be great to show the calcs

[@royghadban7802]

Very impressive & informative!

[@rocketblocks]

Glad you liked it! Subscribe for weekly consulting case interviews!

[@thanhnguyenminh4704]

Great case! Thank you for this as it helps me a lot to prep in my upcoming interviews.
I have some questions that hopefully someone can help 😊
1. When Ashwin calculates the additional patients needing dentures at 10:28, why did he take 282 / 0.7? Isn’t that when we want to mimic the sub-prime and deep sub-prime group, currently 6%, to 30%, we should take 300 total patients x 30% = 90 sub-prime and deep subprime patients, which is an additional 72 patients? My reasoning is based on the fact that the total patient size should not change, only the proportion of that subprime group.
2. When he calculates the interest loan, why would he take the average balance ($1,250) instead of the full balance ($2,500)? Isn’t that the formula for interest is Principal x Interest Rate x Terms?
I would highly appreciate it if you can help me to understand better 😊

[@cansubudak8666]

regarding to your 1st question, I think the approach is the following; since we do not expect any increase in the number of prime group clients (super prime, prime, near prime) the pre-existing 282 prime clients (rounding to 280 ppl) will now form the 70% of the total clients (280=0.7x -> x=400) so the new total number of clients after launching the denture loan is 400. New total clients (400) - old total clients (300) = additional clients generated through captive financing (100).
I also couldn't understand the 2nd question that you pointed, I would be happy too if someone explains that logic :)

[@TanmayGaware-jk5rb]

@@cansubudak8666 great explanation for the 1st question and for 2nd question, I would advise you to watch the video with subtitles from 15:40. Explanation for 2nd question: We do need to remember that the question is a straight line method which means the Principal is declining every month so to make it easy we did the average of 2500 which came as 1250 USD then (1250 * 20/100 * 36/12). So now 1250 is the Principal, 20/100 is the Interest and 36/12 is Times in months as in the question "months" term was used which changes the Simple Interest formula. Therefore (1250* 20/100 * 36/12 = 750) So 750 USD is the Interest that we earned. Now as we know the Principal + Interest it would now become 2500+ 750 = 3250 USD. In short, if we start giving loan then as earlier the cost of dental was 2000 and we used to sell it for 2500 which means 500 was profit and as we are introducing finance channel as new revenue stream the 2500 USD dental product with finance option would now make us earn 3250 USD so 750 USD profit because of introduction of finance option (EMI). Now, 30% is the value that cant be recovered which means its a loss (30/100 * 3250= 975). Now it means that 225 USD is the loss per client and that's the reason in the current market no one is giving loan to sub prime patients as on each patient we would lose 225 USD. Now you would be wondering from where 225 USD came so do you remember 750 USD which was the interest that we would earn we took that 750 USD and deducted it from 975 USD which came from 30% of 3250. Therefore, 975-750 = 225 USD. Now, 225 USD * 100 incremental patients * 800 clinic would result 18M USD. Now that 18M usd is deducted from 40M which would bring 22M USD (2500-2000 is 500 USD which results 500 *100*800= 40M). 40M is the normal amount that we would generate because of new patients who have come to us. Sorry for this lengthy explanation.