Short answer
A growth strategy case asks how a client can reach a revenue target. Size the gap first, subtract what market growth delivers on its own, then size each lever: selling more to current customers, winning new customers, new products, new markets, and buying or partnering for growth. Combine levers until the gap closes within the client's margin and investment limits, then recommend one plan.
Key takeaways
- Start every growth case by sizing the gap between today's revenue and the target, then subtract the growth the market delivers on its own.
- Organic levers follow from one equation: revenue equals customers times purchases per customer times price, across products and markets.
- McKinsey research on 200+ large companies found market momentum and M&A explained about four-fifths of differences in growth, with share gain at 22%.
- Judge each lever on four numbers: revenue added, margin, upfront investment and time to impact.
- Close with a combination of levers that clears the target, plus the single risk most likely to break it.
What is a growth strategy case?
A growth strategy case asks how a client can reach a revenue or profit target, for example "grow from €40M to €60M in three years." Your job is to size the gap, separate what the market will deliver on its own from what the client must add, size each growth lever, and recommend the combination that closes the gap within the client's limits on margin and investment.
The case tests prioritization more than idea generation. Most candidates can list ten ways to grow. Few show which three matter, how much each adds and what the plan costs.
How a growth case differs from a market entry case
A market entry case evaluates one move; a growth case compares many. The two overlap because entering a new market is one growth lever, so the market entry case guide remains the reference for that single lever.
| Market entry case | Growth strategy case | |
|---|---|---|
| Client question | Should we enter market X, and how? | How do we reach target Y? |
| Starting point | One defined opportunity | A revenue or profit gap |
| Core analysis | Attractiveness, ability to win, entry economics, risks | Gap sizing, market momentum, lever sizing, combination |
| Typical math | Breakeven and payback for one option | Several levers summed against one target |
| Output | Go, no-go or conditional go | A ranked plan of levers with a fallback |
If the interviewer says "the client wants to grow" without a target, ask for one. A number turns an open brainstorm into a solvable problem.
Building the growth levers from first principles
Every lever follows from one equation: revenue equals customers times purchases per customer times price per purchase, summed across products and markets. Each term you can raise is a lever, which keeps the structure MECE without a memorized framework.
Organic levers (the client grows with its own resources):
- Sell more to current customers: higher purchase frequency, a larger share of wallet through add-ons and bundles, or a higher price. The pricing case guide covers the price lever in depth.
- Win new customers in current markets: take share from competitors, open new channels, or reach new customer segments with the current offer.
- Sell new products to current customers: adjacent products that use the client's existing relationships and channels.
- Take current products to new markets: new countries, regions or customer types.
These four combinations of existing and new products and markets match the grid Igor Ansoff published in "Strategies for Diversification" in Harvard Business Review in 1957. Interviewers care more that you tailor the levers to the client than that you name the source.
Inorganic levers (the client buys or borrows growth):
- Acquire: buy a competitor, a supplier of adjacent products or a business in a new market. The M&A case guide covers synergies and valuation.
- Partner: joint ventures, licensing and distribution agreements, which add reach with less capital and less control.
| Lever | Speed | Capital needed | Typical risk | Data to ask for |
|---|---|---|---|---|
| More from current customers | Fast | Low | Customer churn after a price rise | Frequency, wallet share, price elasticity |
| New customers, current markets | Medium | Medium | Competitor response | Market share, win rates, sales capacity |
| New products | Medium | Medium | Weak fit with current capabilities | Attach rates, margins on the new product |
| New markets | Slow | Medium to high | Low odds outside the core | Market size, local competitors, entry cost |
| Acquisition | Fast | High | Overpaying, integration | Target revenue, margin, price multiple |
| Partnership | Medium | Low | Shared margin, partner conflict | Partner terms and reach |
Where growth actually comes from
Market choice usually matters more than share gain. McKinsey's study of more than 200 large companies over 1999-2005 attributed differences in growth 43% to portfolio momentum (growth of the segments a company is in), 35% to M&A and 22% to market share gains. Bain's research points the same way on new markets: Chris Zook estimated in 2015 that only about one in four moves outside the core business succeeds.
Two habits follow for the interview. Calculate market momentum before any lever, because it shows how much of the target the client gets for free. Then apply a probability discount to levers far from the core business, and say so aloud.
Worked example: a Dutch coffee roaster targeting €60M
Prompt (fictional): Norda Coffee roasts specialty coffee in Utrecht. It sells to cafes and through online subscriptions, with €40M revenue and a 10% EBIT margin (€4.0M). The owners want €60M revenue in three years without the margin falling below 10%.
Step 1: split current revenue.
| Segment | Calculation | Revenue |
|---|---|---|
| Cafes (B2B) | 800 cafes x €30,000 per year | €24M |
| Online subscriptions | 40,000 subscribers x €400 per year | €16M |
| Total | €40M |
Step 2: subtract market momentum. The interviewer gives market growth of 2% a year for cafe coffee and 10% for online subscriptions.
- Cafes: 1.02 x 1.02 x 1.02 = 1.061, so 24 x 0.061 = €1.5M
- Online: 1.1 x 1.1 x 1.1 = 1.331, so 16 x 0.331 = €5.3M
- Momentum total: €6.8M, leaving a gap of 20 - 6.8 = €13.2M for the levers to close
Step 3: size each lever (year-3 run rate).
| Lever | Calculation | Revenue | EBIT margin | EBIT | Upfront investment |
|---|---|---|---|---|---|
| A. Raise cafe prices 3% | 24 x 0.03 | €0.7M | ~100% (no volume loss assumed) | €0.7M | €0 |
| B. Bundle milk and cups | 800 x 30% uptake = 240 cafes x €8,000 | €1.9M | 15% | €0.3M | €0.2M |
| C. Hire two sales reps | 2 reps x 40 cafes a year x 3 years = 240 cafes x €30,000 | €7.2M | 12% | €0.9M | €0.3M |
| D. Launch online in Germany | 15,000 subscribers x €400 | €6.0M | 5% | €0.3M | €3.0M |
| E. Acquire a Belgian roaster | Target revenue | €10.0M | 6% | €0.6M | €12.0M |
Step 4: combine levers against the gap.
| Plan 1: organic (A+B+C+D) | Plan 2: acquisition-led (A+B+C+E) | |
|---|---|---|
| Lever revenue | 0.7 + 1.9 + 7.2 + 6.0 = €15.8M | 0.7 + 1.9 + 7.2 + 10.0 = €19.8M |
| Year-3 revenue | 40 + 6.8 + 15.8 = €62.6M | 40 + 6.8 + 19.8 = €66.6M |
| Lever EBIT | 0.7 + 0.3 + 0.9 + 0.3 = €2.2M | 0.7 + 0.3 + 0.9 + 0.6 = €2.5M |
| Year-3 EBIT (incl. €0.7M from momentum at 10%) | 4.0 + 0.7 + 2.2 = €6.9M | 4.0 + 0.7 + 2.5 = €7.2M |
| Year-3 EBIT margin | 6.9 / 62.6 = 11.0% | 7.2 / 66.6 = 10.8% |
| Upfront investment | 0 + 0.2 + 0.3 + 3.0 = €3.5M | 0 + 0.2 + 0.3 + 12.0 = €12.5M |
| Extra EBIT per € invested | 2.2 / 3.5 = 0.63 | 2.5 / 12.5 = 0.20 |
Both plans clear €60M and the 10% margin floor. Plan 1 earns three times as much extra profit per euro invested.
Step 5: stress-test the weakest lever. Germany is the move furthest from the core. If it reaches half its target (€3.0M), Plan 1 lands at 40 + 6.8 + 12.8 = €59.6M, €0.4M short. The plan holds only if the German launch performs or a backup exists.
Recommendation: "Norda can reach €60M in three years organically. Raise cafe prices 3%, add a milk-and-cups bundle, hire two sales reps and launch online in Germany: that plan reaches €62.6M at an 11% margin for €3.5M of investment. The main risk is Germany, so set a milestone of 5,000 subscribers after year one and keep the Belgian acquisition as the fallback if the launch misses it."
Stephan's note: The step most candidates skip is market momentum. In this case it delivers a third of the target before the client lifts a finger, and leaving it out makes every lever look more urgent than it is.
How to practice growth cases
Run the five steps on every practice prompt: gap, momentum, levers, combination, stress test. Write each lever on one line with revenue, margin and investment, so the combination becomes simple addition. The issue tree guide shows how to lay out the levers on paper, and the case interview math drills cover the growth-rate arithmetic in step 2.
Cracking the Case includes three business-case frameworks and three fully worked candidate cases, useful practice once you can size a lever in under a minute.
Frequently asked questions
What is the difference between a growth strategy case and a market entry case?
A market entry case evaluates one move into one new market and ends in a go or no-go. A growth case starts from a revenue target and compares many levers, of which entering a new market is only one.
Should I use the Ansoff matrix in a growth case?
Use its logic and skip the label. The four organic levers in this guide cover the same product and market combinations, and tailoring them to the client shows more judgment than naming a textbook grid.
How do I size a growth lever quickly?
Multiply the number of customers affected by the change in purchases or price per customer, using round numbers. State each assumption aloud and check that the result is plausible against the client's current revenue.
What is inorganic growth?
Inorganic growth is revenue the client buys or borrows: acquisitions, joint ventures, partnerships and licensing deals. It adds revenue fast and costs more capital, with integration risk.
Do growth cases always involve profitability?
Nearly always. Most clients set a margin floor or an investment budget, so test whether each lever's revenue arrives at an acceptable margin before you recommend it.