Consulting Case Interview Questions

Profitability is the most common case type. The client's profits are declining and they want to know why and what to do about it. Structure: Profit = Revenue minus Costs. Break revenue into volume and price. Break costs into fixed and variable. Then drill into the driver of the decline by asking targeted questions. Is revenue down because volume dropped (market shrinking or losing share?) or price decreased (competitive pressure, new entrants?)? Are costs up because of input price increases, operational inefficiency, or scale diseconomies? Once you identify the root cause, size the impact and recommend specific actions. Interviewers evaluate your structure (did you MECE your analysis?), your hypothesis-driven approach (did you prioritize the most likely driver?), and your ability to synthesize data into a clear recommendation.

Market sizing tests your ability to estimate large numbers using logical frameworks and reasonable assumptions. Example: How many gas stations are in the US? Approach: Start with US population (330 million), estimate cars per capita (about 280 million registered vehicles), average miles driven per year (12,000), average MPG (25), gallons consumed per car per year (480), total gallons per year (134 billion), average gas station throughput (1 million gallons per year), so approximately 134,000 gas stations (actual is about 150,000). The key is not getting the exact right answer but demonstrating a logical, structured approach with reasonable assumptions. Always state your assumptions explicitly, sanity-check intermediate calculations, and present your answer with appropriate confidence.

These cases ask: Should the client enter a new market or launch a new product? Structure your analysis around four dimensions: market attractiveness (size, growth rate, profitability, competitive intensity), competitive advantage (what does the client bring that incumbents lack — cost advantage, brand, technology, distribution?), feasibility (does the client have the capabilities and resources to execute?), and financial analysis (what is the expected return on investment?). A common trap is recommending entry based solely on market attractiveness without assessing whether the client can actually win. Strong candidates also consider the entry mode: organic build, acquisition, joint venture, or licensing — each has different risk, cost, and speed profiles.

Some case elements require structured brainstorming: 'Give me five ways to increase revenue' or 'What are the key risks of this strategy?' The key is to be MECE (mutually exclusive, collectively exhaustive) rather than listing random ideas. Group your ideas into categories. For revenue growth: organic revenue (price increases, volume growth through new customers, increased usage from existing customers) and inorganic revenue (acquisitions, partnerships, licensing). For cost reduction: procurement (negotiate better supplier terms), operations (improve efficiency, automate), organization (restructure, reduce overhead), and footprint (consolidate facilities). Structured brainstorming shows you think in organized frameworks rather than stream of consciousness.

The final step of every case is synthesizing your analysis into a clear recommendation. Use the pyramid principle: lead with the answer, then support it with 2-3 key reasons, each backed by data from the case. For example: 'I recommend the client pursue the acquisition because: first, the target fills a critical capability gap in digital marketing, which would take three years to build organically. Second, at an 8x EBITDA purchase price with $30M in achievable synergies, the deal generates a 20% IRR. Third, the competitive window is closing as two other potential acquirers have expressed interest.' Avoid hedging or restating the problem — interviewers want decisive, evidence-based recommendations.