Bain-Company-Case-Interview 面试 贝恩

Revenue Analysis
Decline in prices
± Lack of differentiation
Easy product returns to mall stores Cross promotions to create loyalty effect Recommendation engines
Music retailer: cassettes, CDs, and videos
Business Activities
± Mail order²records and tapes ± Went public ± Expanded retail stores to 400 mall-based stores ± Recent focus on Internet ± Mail order channel was allowed to die
± Retail: sales people ± Mail Order: call centers ± Internet: promotions, ads, program development ± These channels may share general overhead, but it is
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
Cross channel promotions
± Virtual coupons in direct mailer ± Long-term coupon plan to build repeat purchases ± Friends & family programs
Integrate offline assets
Adjust product line to focus on niche market
Strategic alternatives
± Merger ± Divestiture
± 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
important to explore points of differentiation:
Activities Customers Competitoine competition is highly fragmented
± Mail Order: historically have focused on this channel; now moving online
± Retail stores: off-line consolidation; moving online ± Internet: Many Internet-only retailers
Explore broader issues to determine if channel segmentation is appropriate during analysis
± Same product competing in overall market ± Channels may have cost advantages
± Easy returns at over 400 stores nationwide ± Professional advice from entertainment associates
Recommendation
Consider alternatives
Target new customers with trials and promotions
Bain & Company: Case Interview
Introduction
Take notes Ask questions Structure your analysis Drive towards a recommendation
Case Question: Entertain Me
Framework
Cost of Goods Sold (COGS)
± Multi-channel approach in order to increase volume and decrease unit costs
Sales, General & Administrative (SG&A)
Mail Order: May have been a cash cow even if market growth was declining
Internet: Drive profitable growth
Strategic Issues
Level of differentiation
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
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
Customer demographics for various channels differ
Channels
Explore each channel¶s revenue and margins individually
Retail: Adequate, consistent with industry standards
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