Nothing Patently about this business research case study

Business Research Case Study

It been a while, I have posted something on the blog! This time it is little different area that I am writing on.

Recently, one of my friend asked me to solve following case study in a day . I found this study interesting and would like to share with you all for feedback. This may also help students and aspiring business research analyst.

The solution presented may not be perfect since it was solved in very short time. I would love to hear feedback on areas of improvement.

Case

A specialty electric lighting company has recently developed a technology which can be used to make bulbs virtually fuse-proof. Essentially the bulbs using this technology have a lifelong longevity (infinite lifetime), unless damaged externally.
The company wants to enter the vast Indian market with this bulb technology. It is now scouting for the best options (buy or build) available to them. The company has approached you to help them with this exercise.

Please prepare a 2-3 slider Ms-Powerpoint presentation highlighting the current market dynamics and scenario in India viz-a-viz the electric lighting bulb market, as well as, the business environment and options for foreign company to enter in India.

Also, as a pilot, the company wants to understand the initial demand for their product in a commercially viable region, such as, the Delhi/NCR region. Specifically, they want to find out what would be the demand for their bulb during the first 3 years of introduction under various scenarios (optimistic/most likely and pessimistic). You are required to prepare an Ms- Excel sheet model to derive the number of bulbs that can be sold (demand) in Year 1, Year 2 and Year 3 of introduction of the product. Please take suitable assumptions for your estimates. These assumptions should be based on logic and verifiable. You can also use any source for information that is freely available on the internet and you are required to document them.

Given below are some facts that may help you in your estimates.
1. Being a new technology as it is, the bulb is going to be 5 times as expensive as a CFL bulb and 10 times as expensive as a normal bulb/tube light
2. The longevity of normal bulb/tube light can be assumed to be 1 year and those of CFL bulbs to be 2 years.
Please present your estimates in a one slider Ms-Powerpoint presentation.

Solution:

Executive Summary:

1. Indian Lighting market is growing at 12% CAGR. However, it is difficult market to enter for a new player with limited or no presence in the Indian Market. 
2. The rising economy and changing preference of quality over price in India provides opportunities for niche products.  
3. Supply of cheap lighting material from China pose threat to existing and new players in the market.  
4. Establishment of export unit, Joint venture with existing players could be preferred route for entering in the market.  
5. Commercial businesses, real estates and SEC A &B households are potential first target market segments.  
6. Other shortcomings in existing lighting products must be explored for creating strong product differentiation.  
7. “Fit and Forget” could be strong differentiator for the product. However, the high price sensitivity of the market must be taken into account and may significantly affect product volume. 
8. LED technology seems to be closest to the product with strong performance in the market. This technology pose serious threat to the product.

Following are snapshot of the presentation prepared:

Demand Estimation:

Final table:

I would be happy to answer questions on the above analysis and pass the relevant deliverables for educational purposes.