Market entry
TimberCrest Ventures is weighing entry into the German coffin market — decide whether the opportunity justifies the move.
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Our client, TimberCrest Ventures, is a bedroom furniture maker serving Germany. Last year, TimberCrest Ventures had revenues of around $20m and operating profit margins of around 20%. TimberCrest Ventures is not concerned about growth and profitability in the long term, but they are worried about cyclicality in the business. Business is good during sales times, but other times can be quite slow.
The CEO is considering entering the coffin market. He wants your opinion on whether this would be a good idea for TimberCrest Ventures.
Should TimberCrest Ventures enter the market for coffins?
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