Oct 08, 2026 by Offer

OC&C Diversification Case 2027: Adjacent Market Framework

For the OC&C diversification case — "A fitness equipment manufacturer wants to diversify revenue streams. What adjacent markets should they consider?" — map adjacencies along clear dimensions: same customer with new needs, same capability with new customers, and same channel with new products.

What This Question Assesses in an OC&C Diversification Case

This case is commonly reported by candidates and tests growth-strategy thinking: can you find expansion paths that exploit what the client already does well? The interviewer is watching for structured creativity — generating adjacencies systematically rather than brainstorming randomly — and for disciplined prioritisation. Candidates commonly report that the failure mode is a long list of ideas with no ranking; consultants are hired to recommend, not to list.

How to Structure This OC&C Diversification Case

Generate adjacencies by dimension, then prioritise.

Customer adjacencies: What else does the fitness equipment buyer need? Recovery products, nutrition, fitness apps and content, home gym design services. Same customer, new wallet share.
Capability adjacencies: What can the manufacturer already do? Precision engineering and manufacturing could serve adjacent hardware — rehabilitation equipment, commercial gym fit-outs, or connected devices.
Channel adjacencies: Where else can existing products or lightly adapted ones sell? Corporate wellness programmes, hotels, schools, or subscription rental models through the same logistics.
Prioritise: Score the shortlist on market attractiveness (size, growth, margin), fit (how much of the existing capability transfers), and feasibility (investment, risk). Recommend the top one or two with reasoning.

Example line: "I would map adjacencies across three dimensions — new needs of the same customer, new customers for the same capabilities, and new channels — then prioritise by market attractiveness and how much of the client's manufacturing edge transfers."

Common Mistakes With the OC&C Diversification Case

Brainstorming without dimensions. Random ideas ("they could make protein shakes!") without a generating framework look unstructured. Dimensions first, ideas second.
Ignoring fit. An attractive market the client has no right to win is a distraction. Fit with existing capabilities should heavily weight the ranking.
No prioritisation. Candidates commonly report that interviewers explicitly ask "so which one?" — have a ranked answer ready, not a menu.

Adjacency expansion is where strategy consulting earns its fees in the real world, and the case mirrors that: systematic generation, honest assessment of fit, and a committed recommendation. Practice the three-dimension generation until it is second nature.

Keep Reading

FAQ

How many adjacencies should I generate? Two or three per dimension is plenty — six to nine total, then cut to a shortlist of two or three for prioritisation. Quality of reasoning beats quantity of ideas.

Should I consider non-adjacent diversification? Mention it only to dismiss it with reasoning: distant diversification usually destroys value without a clear capability link. Focus earns points.

What about digital or subscription models? Strong candidates in this case — connected fitness content or equipment subscriptions leverage the installed base. Just test willingness to pay honestly rather than assuming it.

How do I weigh attractiveness versus fit? State your weighting. A common defensible stance: fit first, because an attractive market you cannot win is worthless — then attractiveness among the high-fit options.

Preparing for OC&C Strategy Consultants's interview? Our 2027 OC&C Strategy Consultants Online Test Tutorials (One-Way Video Assessment and Mapped Test) has practice questions and answers — $79 one-time, instant download.