Baby Bell

Case Overview

A Baby Bell holding company is interested in diversifying into other areas besides telecommunications. They are considering entering the market for electronic home security systems. They have previously made unsuccessful forays into software and into real estate.

The home security industry is highly fragmented. The top five players in the industry generate less than 4% of the total industry revenues. This implies that the industry largely consists of small, regional companies.

10% of all residences currently own an electronic security system.

Should Baby Bell enter the market for home security systems?

Case Prompt

This is a LEK Market Study case study interview. Your job is to guide your client to decide whether or not to enter the home security market.

We recommend using the Market Study (market entry) Framework to solve this case study, but don’t settle for just working the framework. Allow yourself to work outside of the framework to develop a strategic solution to your client’s particular issue while also showcasing your business acumen.

There are one math exhibits in this case. This a beginner/intermediate level case interview with a qualitative difficulty score of 2 out of 4. This case study will prepare you for a first round interview at LEK.

LEK Interview Tips

LEK look for in its case interview candidates? An ability to think strategically.

Make sure to put on your strategy hat for this one and dazzle the firm!

In this case study, look for the following:

1. Focus on your timing (2min for structure, 5min for math, 2min for brainstorming, 2min for conclusion)
2. Make it a point to find one or two opportunities for growth.

For out-loud practice with an expert, book an hour with an ex-MBB coach.