贝恩咨询贝恩《CaseInterview》
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Bain & Company: Case Interview
Introduction
• Take notes • Ask questions • Structure your analysis • Drive towards a recommendation
Case Question: Entertain Me
– Reputation – Mall stores: easy returns; advice from entertainment associates
• Metrics
– Revenue
• +10% in 1997 • +2% in 1998 • 10% in 1999 • compared to 50+% market growth
• Music retailer: cassettes; CDs; and videos
• Business Activities
– Mail order—records and tapes – Went public – Expanded retail stores to 400 mallbased stores – Recent focus on Internet – Mail order channel was allowed to die
• Cost Performance
– Structure: How does this overall cost structure compare to the cost structure within each channel
• 60% COGS • 10% distribution • SG&A up 5% over last 2 years
Framework
• Cost of Goods Sold COGS
– Multichannel approach in order to increase volume and decrease unit costs
• Sales; General & Administrative SG&A
– Retail: sales people – Mail Order: call centers – Internet: promotions; ads; program development – These channels may share general overhead; but it is
– Mail Order: historically have focused on this channel; now moving online
– Retail stores: offline consolidation; moving online – Internet: Many Internetonly retailers
• Decline in volume
– Customer demographics for various channels – Key volume drivers
• Visitors to the site • Purchase frequency • Average purchase volume • Repeat purchases • Compare to mail order channel and online competitors
Recommendation
Leverage assets across multiple channels
• Encourage existing mail order customer base to move online
– Direct mail to build awareness of the site – Communicate with customers to mitigate online security concerns
• Explore broader issues to determine if channel segmentation is appropriate during analysis
– Same product competing in overall market – Channels may have cost advantages
• Customer demographics for various channels differ
Channels
Explore each channel’s revenue and margins individually
• Retail: Adequate; consistent with industry standards
– Easy returns at over 400 stores nationwide – Professional advice from entertainment assider alternatives
• Target new customers with trials and promotions
• Mail Order: May have been a cash cow even if market growth was declining
• Internet: Drive profitable growth
Strategic Issues
• Level of differentiation
• Cross channel promotions
– Virtual coupons in direct mailer – Longterm coupon plan to build repeat purchases – Friends & family programs
• Integrate offline assets
Revenue Analysis
• Decline in prices
– Lack of differentiation
• Easy product returns to mall stores • Cross promotions to create loyalty effect • Recommendation engines
• Issue: Declining revenue and margins
Structure your approach
• Wrong: Always use the same framework regardless of the business issue
• Better:
– Clarify the primary business issues – Evaluate options
important to explore points of differentiation:
• Activities • Customers • Competitors
Competitors & Customers
• Online competition is highly fragmented
• Adjust product line to focus on niche market
• Strategic alternatives
– Merger – Divestiture
Introduction
• Take notes • Ask questions • Structure your analysis • Drive towards a recommendation
Case Question: Entertain Me
– Reputation – Mall stores: easy returns; advice from entertainment associates
• Metrics
– Revenue
• +10% in 1997 • +2% in 1998 • 10% in 1999 • compared to 50+% market growth
• Music retailer: cassettes; CDs; and videos
• Business Activities
– Mail order—records and tapes – Went public – Expanded retail stores to 400 mallbased stores – Recent focus on Internet – Mail order channel was allowed to die
• Cost Performance
– Structure: How does this overall cost structure compare to the cost structure within each channel
• 60% COGS • 10% distribution • SG&A up 5% over last 2 years
Framework
• Cost of Goods Sold COGS
– Multichannel approach in order to increase volume and decrease unit costs
• Sales; General & Administrative SG&A
– Retail: sales people – Mail Order: call centers – Internet: promotions; ads; program development – These channels may share general overhead; but it is
– Mail Order: historically have focused on this channel; now moving online
– Retail stores: offline consolidation; moving online – Internet: Many Internetonly retailers
• Decline in volume
– Customer demographics for various channels – Key volume drivers
• Visitors to the site • Purchase frequency • Average purchase volume • Repeat purchases • Compare to mail order channel and online competitors
Recommendation
Leverage assets across multiple channels
• Encourage existing mail order customer base to move online
– Direct mail to build awareness of the site – Communicate with customers to mitigate online security concerns
• Explore broader issues to determine if channel segmentation is appropriate during analysis
– Same product competing in overall market – Channels may have cost advantages
• Customer demographics for various channels differ
Channels
Explore each channel’s revenue and margins individually
• Retail: Adequate; consistent with industry standards
– Easy returns at over 400 stores nationwide – Professional advice from entertainment assider alternatives
• Target new customers with trials and promotions
• Mail Order: May have been a cash cow even if market growth was declining
• Internet: Drive profitable growth
Strategic Issues
• Level of differentiation
• Cross channel promotions
– Virtual coupons in direct mailer – Longterm coupon plan to build repeat purchases – Friends & family programs
• Integrate offline assets
Revenue Analysis
• Decline in prices
– Lack of differentiation
• Easy product returns to mall stores • Cross promotions to create loyalty effect • Recommendation engines
• Issue: Declining revenue and margins
Structure your approach
• Wrong: Always use the same framework regardless of the business issue
• Better:
– Clarify the primary business issues – Evaluate options
important to explore points of differentiation:
• Activities • Customers • Competitors
Competitors & Customers
• Online competition is highly fragmented
• Adjust product line to focus on niche market
• Strategic alternatives
– Merger – Divestiture