A US-based e-commerce platform wants to enter the Philippine market by setting up its own last-mile logistics network. They've asked us to evaluate whether this is a good idea. How would you approach this?

Situation

In my case interview, the interviewer presented a hypothetical: a foreign client wants to enter the Philippine last-mile delivery market. I had to structure an analysis covering market attractiveness, competitive landscape, operational feasibility, and financial viability.

Task

My task was to develop a structured framework for market entry evaluation, not just give a yes/no answer but outline the key factors to analyze.

Action

I began by defining the scope: whether the client wants to serve only their own platform or third-party merchants, and whether the focus is Metro Manila or nationwide. Then I broke down the analysis into four buckets. First, market opportunity: size of e-commerce logistics in the Philippines, growth trajectory, key segments (e.g., same-day delivery, COD preferences). Second, competitive landscape: existing players like Lalamove, GrabExpress, J&T, 2GO, and their strengths. Third, operational feasibility: infrastructure needs, warehouse locations, rider fleet, technology, addressing traffic congestion in Metro Manila, and the archipelagic challenge. Fourth, financial analysis: capex, opex, unit economics per delivery, revenue model (subscription vs. per-delivery fee), and expected break-even timeline. I asked clarifying questions throughout and used a simple decision tree: if the market is large enough and the client can achieve a cost leadership or differentiation advantage, it could be viable. I noted that many global players fail in the Philippines due to underestimating last-mile complexities, so a local partnership might be less risky.

Result

The interviewer pushed back on my assumption of COD prevalence, and I adjusted by saying we'd need actual data, but if COD is 80%+, it impacts doorstep cash management and driver safety. I showed flexibility and an understanding of local nuances.