on la ou ed la ou ed

Creative Problem Solving for Case Interviews

rame he se a e o k o
o le
Case Book
guide anal sis

A Practical Guide on How to Crack Case Interviews

esco al L ani
efurbish leet

Phase I
trial

ail

deliveries

Co eio

Co eio

Co eio

Co eio

i e nc
The Interview Process
Acknowledgements

Ca ee Se ices ould like o hank he ollo in co anies o hei ene ous

con i u ion o he London Business School Case Book
 London Business School Case Book

Bain Com an
ntertainment Co P IT

Case Summar for Interviewee

Situation
e ie ou in li e en e ain en co an
Co an has en o ed e ea s o e endous o h in icke sales and e enue

Com lication
hile icke sales and e enues ha e con inued o o s eadil o a ili o h has la ed

e uestion
ha is he oo cause o he clien s la in o a ili

lease ollo he s e s elo o uide ou h ou h he case

Case structure Ste

Structure Anal se Advise

rame he se a e o k o ig dee er e elo insights S nthesise ha ake a

o le guide anal sis ou lea ned recommendation

o ould ou a e he o le

Suggested framework evenue and Costs

Pro t

evenue Cost

Price uantit i ed ariable

ote for Interviewer he uan i a i e co onen o his case is e s ai h o a d n en is o he ulk o he in e ie

o e s en on he uali a i e ele en s
Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

Case structure Ste

Structure Anal se Advise

rame he se a e o k o ig dee er e elo insights S nthesise ha ake a

o le guide anal sis ou lea ned recommendation

i en his a e o k ha ues ions ould ou ask ou in e ie e

Identif the drivers that matter

evenues Costs

Price uantit i ed ariable

Interviewee eed o unde s and e enue d i e s eed o unde s and cos d i e s

as he e een a ha has ha ened o ha e i ed o ha e a ia le

si ni can chan e in o o icke s sold in Cos s C chan ed Cos s C chan ed
icke ices as e ea s in as e ea s in as e ea s

Interviewer e a e icke ice icke sales olu e C ha e o n as C o so oso

chan es o s o a ies ea l he clien has added a e ene all e
o s o Ci ies i h o so oso o e ou s o s consis en i a
la el eal h n e ain en Co is C a e ene all d i e s o di e ences
o ula ions icall o e o ula in so e alloca ed len h a e enue en al
ha e hi he a icke laces han o he s o so
ices

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

hibit ntertainment Co nancial results

CAG
ntertainment Co revenue

oss a in
oss o

hibit ntertainment Co ro t margin b tour sto

ro t margin
ntertainment Co

Ci

Ci

Ci

Ci

Ci

Ci

Ci

Ci

Ci
Ci
Ci

Ci
Ci

Ci
Ci

Ci
Ci

Ci

Ci
Ci

Ci

Sho id h e uals e enue

o sho s
ccu anc ae

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

hibit ost recent erformance results from selected tour sto s

Cit A Cit B Cit C

e a e icke ice
o al sho s
o al a endance
ccu anc ae
a ia le cos s e sho
i ed cos s

o s o s in e ious ea s
ea o s isi

Case structure Ste

Structure Anal se Advise

rame he se a e o k o ig dee er e elo insights S nthesise ha ake a

o le guide anal sis ou lea ned recommendation

o can ou di dee e o nd he sou ce o he o le

o ou ha e a h o hesis a ou ha is causin he o le

Hints
hibit n e ie ee should i edia el eco nise dis a i in o h o e enues and o
hibit n e ie ee should oin ou ha he un o a le sho s ha e sho e L and occu anc a es

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

evelo a h othesis that ou can test dig dee er into the drivers that matter

H othesis ntertainment Co s slow growth in ro tabilit is a result of e ansion to markets that are
un ro table or marginall ro table

evenues Costs

Price uantit i ed ariable

Interviewee icke ice endance an es i ed cos s hich a ia le cos s an e

a ies o o o a e alloca ed un o
o as esul o di e en len h a o
un len hs and o
occu anc a es

Interviewer o does o a ili a o ci o ci

ost recent erformance results from selected tour sto s

ark gre rows to be calculated b interviewee
CIT A CIT B CIT C
e a e icke ice

o al a endance
Gross revenue

a ia le cos s e sho
o al sho s
o al a ia le cos s
i ed cos s
Total costs
Gross ro t

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

Case structure Ste

Structure Anal se Advise

rame he se a e o k o ig dee er e elo insights S nthesise ha ake a

o le guide anal sis ou lea ned recommendation

ha insi h s can ou d a o he da a ou ha e

ig dee er to understand the im lications of the ro tabilit anal sis

e insights

Interviewee a ea s ha n e ain en Co is o in icke sales and e enue a he

e ense o o a ili
he should e o e selec i e a ou he a ke s ha he en e Se e al
ossi ili ies e is o con inued o h
S a lon e in he ood a ke s and don o o he ad a ke s
educe cos o he sho
e elo a lo e cos sho o a o he a inal ci ies
Co ina ion o he a o e

Interviewer educin he cos o he sho is no an o ion o a is ic easons

e ha e so e da a on icke sales eek in o a ke s ha ould like ou o
anal e
n e ain en Co has launched a ne lo e cos o a sho in a e a ke s he
ne sho ill e e o ed in ce inks a he han in hea es like he cu en sho
ha e he ini ial o anal sis o he os ecen hea e and ce ink sho in h ee
a ke s o ou o anal e

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

hibit Theatre show ticket sales b week

Cit A Cit C

icke s sold

a ca aci a ca aci
icke s sold e sho

icke s sold e sho

a endance a endance
Sho

Sho

Sho
Sho

Sho

Sho

Sho
Sho
Sho

Sho
Sho

Sho
Sho

Sho

Sho
Sho

e Insights
Cit A So e a ke s con inue o ha e s on a endance h ou hou su es in ha he could add addi ional sho s
i hou d a a icall dec easin occu anc

Cit C he a ke s al ead see a si ni can d o o in sales he end su es in ha he e is no addi ional

ca aci o addin sho s and ha he ci a no e a le o ade ua el u ili e he hea e o a i h i s e hi h C

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

hibit Ice rink format introduced in to offer lower cost o tion for ounger eo le families

Total tickets sold Average ticket rice

ce ink

hea e hea e

hea e ce ink

hea e occu anc ae o sho s e s o

hibit Average cost structure of two show formats

i ed costs er cit visit ariable cots er show

he

a ke in cco oda ions

alen ans o
enue en he
Sa e
cco oda ions
ans o
Ce
co ensa ion enue en
Ce
co ensa ion
Sa e
cons uc ion a ke in is
co ensa ion is
alen ans o
co ensa ion

hea e ce ink hea e ce ink

e Insight
i ed costs er visit hea e o a has e hi h ed cos ase ela i e o ce ink his su es s a need o
a i i e u ili a ion i e sell as an icke s as ossi le

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

hibit Theatre and Ice rink customer demogra hics

of attendees b household income Share of o ulation b age

hea e icke u es ce ink icke u es hea e icke u es ce ink icke u es

e Insights
of attendees b household income Cus o e s a ea o ha e he sa e o le hich is no ha he clien
e ec ed o ha en hen he in oduced he ne sho o a

Share of o ulation b age n ac i see s a ea e o o ion o ce ink cus o e s a e olde and sli h l
eal hie

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

hibit ost recent Theatre and Ice rink results

CIT CIT CIT

hea e o al icke s sold
hea e oss o s
hea e incremental o e cus o e
o ce ink icke s sold
ce ink oss o s
ce ink net o e cus o e
e lace en ae
B eake en Canni ali a ion
a io o incremental hea e o e cus o e o ce ink ne o e cus o e e co a e inc e en al o ne ecause e an o unde s and
he o i ac o losin one addi ional hea e icke assuming that erson bought a Ice rink ticket instead
o addi ional hea e icke s ha ould ha e needed o e sold o a ch he o o he ce ink o a

e Insights
Cit So e a ke s a e a le o sus ain o h o as i hou si ni can canni ali a ion he e o e usin oh
o a s in he a ke a ake sense

Cit So e a ke s a ea o e o e susce i le o canni ali a ion i e onl inc e en al hea e icke s

ould ha e e ceeded he o o he ce ink icke s n e ain en Co should o a l s ick o onl he hea e
o a

Cit hea e o a is no al a s o a le e e e ha he e a e e hi h C so i ou canno sell a la e o

icke s i i h ake sense o use he lo e cos o a

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

Case structure Ste

Structure Anal se Advise

rame he se a e o k o ig dee er e elo insights S nthesise ha ake a

o le guide anal sis ou lea ned recommendation

o ould ou in o e he e e hin ou ha e lea ned

Go back to our initial h othesis

e Insights
he oo cause o he slo e o h in o a ili is ha as n e ain en Co has o n he ha e no se en ed
hei a ke s and used he a o ia e sho o a o len h o s a
hea e sho has e hi h C and he e o e should onl e aken o ci ies ha can su o a lo o sho s and
sell a lo o icke s o he ise ce ink o a a e a e e choice
So e a ke s can o a l sus ain o h he ce ink and hea e o a s
Canni ali a ion is a isk ha us e i i a ed ce ink o a should onl e o in ci ies he e i is e likel
o no i ac hea e sales

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

Case structure Ste

Structure Anal se Advise

rame he se a e o k o ig dee er e elo insights S nthesise ha ake a

o le guide anal sis ou lea ned recommendation

his is clien ha do ou ell he

ecommend a ractical course of action to achieve results

e Insights
o e o a ili segmenting markets
La e a ke s e Ci he e canni ali a ion is ela i el lo isk should e a e ed o ot t atr and
t rin format
ediu a ke s e Ci B should e limit d to onl t atr format o a oid canni ali in he o e
o a le hea e icke sales
S all a ke s e Ci C should e limit d to t rin format hich can deli e ea e o s han hea e

esul ill e higher enetration in large markets im roved ro tabilit e icke sold in he medium markets
and greater ro ts a a lo e isk due o lo e cos ase in he small markets

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

Case Summar for Interviewer onl

etailed case answer ntertainment Co

Clien is a live entertainment ossi le solu ions include o e e in oduc ion o he

com an that tours around the Avoiding un ro table markets ne format creates a risk of
world sta ing for longer in ro table cannibali ing the ver ro table
markets and introducing a new Theatre show in certain markets
n ecen ea s he clien has lower cost show format so cannibali ation must be
i nessed slower than e ected mitigated b a ro riate tour
growth in ro ts des i e dou le he Theatre format has ver high lanning
di i o h in icke sales and ed costs as ticket rices are
e enue high and show run lengths are Client should lan tours so that
long so once cos s ha e een the onl go to markets with
Cause o he slo e o co e ed e e inc e en al icke is Ice rink that are not suitable
o h is ha due o e ansion o a le for Theatre i e not enough
n e ain en Co has started Theatre sales to cover high C
to visit several cities that do Ice rink costs a e substantiall or can sustain both formats
not sell enough tickets to cover lower and run lengths without causing signi cant
costs are shorter so i a e cannibali ation and sta for
oea o ia e in ce ain more shows in good markets
unde e o in hea e a ke s where the can likel sell more
tickets

Co i h Bain Co an nc ll i h s ese ed
 London Business School Case Book

Bain Com an

ntertainment Co

etailed Case Structure ntertainment Co

Structure Anal se Advise

rame he se a e o k o ig dee er e elo insights S nthesise ha ake a

o le guide anal sis ou lea ned recommendation

o ould ou i en his o can ou ha insi h s can o ould ou

a e he o le a e o k ha di dee e o nd ou d a o he in o e he
ues ions ould ou he sou ce o he da a ou ha e e e hin ou ha e
A isa e ae ask ou in e ie e o le lea ned
d i e s and A So e a ke s ha e
co onen s o A ill in o ice and A i in o ice and uch lo e icke A ce ink sho has
e enue and cos cos d i e s o e i e cos d i e s a ke ices and a endance sho e un len hs
o di e en a ke su es in ha he a ea o ia e
o ou ha e a a e ina o ia e he e hea e canno
h o hesis o such a hi h cos sus ain lon uns and
oduc co e C Bu in ci ies
A s n e ain en i h lon hea e uns
Co has o n he ce ink o a should
ha e s a ed o e a oided
ist ass

isi ci ies ha a e
un o a le

uan i a i e a insi h s S n hesi e he ne his is ou clien

In de th anal sis

da a ha do ou ell he
A Co a e he A o en iall
o a ili ac oss in oduce a lo e cos A Canni ali a ion A lan ou ou s so
ul i le ci ies and sho a e a o le in ha ou choose he
look o oo causes o selec a ke s a ke i h o a o he
a iances se en a ion ill e i h a ke s and sell
e ui ed o a oid i he os o a le
icke s o ha a ke

Co i h Bain Co an nc ll i h s ese ed

Bain Co an an s he London Business School e ission i hou cha e o use co odi e e u lish dis i u e su license and o sell co ies o he con en in
he a o e Bain Co an ac ice case he o ks su ec o he ollo in condi ions
he a o e co i h no ice se o h a he o o o each a e and his e ission no ice shall e included in all co ies o su s an ial o ions o he o ks

S S S SS L CL B L S
C BL SS C L S S LL S C L S B L BL
CL S L BL C C C S S C C
S S L S S
 London Business School Case Book

BCG
Iceberg P IT

uro e

Case at a glance o he in e ie e onl

Part A Part B Part C

Structure h othesis Inter retation numerac ecommendations summar

ening statement esen he candida e i h he slide sk he candida e

u clien is ce e a ao i led ice c ea u ices and ha s a e ies could ce e use
lo al anded ice c ea oduce ell he o add ess he e o ance issue in
ce e de elo s anu ac u es and he ssocia e on his case e a ed u o e and ho ould ou io i ise
a ke s ice c ea oduc s and his slide ha is causin he he
sells o e aile s ho in u n sell o e o ance issue in u o e
he end consu e ce c ea is one he candida e is s u lin ask
o he os o a le oduc s ha o should ce e se en he es s s a e ic hinkin c ea i i
ce e akes he usiness has a ke and ha is ha enin in each and a ili o io i ise and o ide
o na led o h e ica se en easons
and de elo in a ke s o e e
ce e has ecen l seen oo
o h and co e i ion in ensi in es s usiness in ui ion and ha a e ou eco enda ions o
in he u o ean ice c ea a ke in he a ili o in e e da a ce e s ana e en
a icula o su e a ke s o n d a conclusions and iden i
and ice c ea ce e ana e en i lica ions
a e su e he ha e ea oduc s es s a ili o s n hesi e and
he con inue o in in consu e as e s uc u e eco enda ions
es s he e is a s on i eline o o does he a ke o o uni usiness in ui ion and e a h
lanned oduc launches and he co a e o ce e s usiness
ha e s on ands in an a ke s oda
ana e en elie es his allo s he he candida e is s u lin
o sell hei oduc s a a hi he ice ask hich se en ould ou
han he co e i ion ha could eco end ce e ocus on and
e causin he e o ance issue in ha is he a in and olu e
uo e o en ial in ha se en

es s a ili o s uc u e a es s nu e ac a ili o ake

o le and s a e and e lain a easona le assu ions de ee
clea h o hesis o con dence insecu i and
e sonali in he ace o challen e
o hei o k ask e ou su e
ou e i h
 London Business School Case Book

BCG

Iceberg

e case insights an e cellent candidate might uncover o he in e ie e onl do no ell he candida e

he e a e a ke se en s ce e is innin a ke sha e in n an i en se en
econo ass a ke and a sh inkin ass a ke eco ended ce e s olu e
e iu iced oduc s a in o o o en ial i s
e iu se en is likel o in co e i i eness o cus o e s
ce e co e es i a il in he as ands dis in uish he sel es and consu e s ealisin he a e
ass a ke se en de ned as o he ass a ke o e ain and di e en and i s a ili o in
ice oin s iha o a ins a ains anded and i a e la el
a ke sha e alue oduc s
ou o olu e o co e e ce e should
L ou o L i e olu e o i o e lan
u ilisa ion in es e n his case is lon and candida es
uo e s in o h ould no necessa il e e ec ed
he candida e delinea es e ica and educe uni o nish i
se en s sli h l di e en l hei cos s so ha i is e e a le o
a ke si e and sha e nu e s co e e on ice in he ass
ould di e acco din l a ke
nc ease esence in e iu
el in on as e e o ance
ass a ke consu e s a e and s en h o and
eco in o e ice conscious i ise d i e s o consu e
sales o a e s on es u chasin eha iou esides
in he ass a ke ca e o ice e acka in
ad e isin shel lace en
n he ass a ke and econo o en iall e and in he u e
se en s esco is unde cu in end o he econo a ke
ce e and o he co e i o s al hou h i s e aile u chase
on ice o in he econo ice a e less co e i i e
se en and ushin do n
ce e s e enue in he ass
a ke
 London Business School Case Book

BCG

Iceberg

hibit ice cream tub rices sho o candida e

arket rice architecture am le roducts

aa en a s
Ben e s
esco ines
L
en
ice se

ce e L anilla
e ail

esco L anilla

esco al L anilla

a ke alue o ice se en a e ail ice

ce e ice c ea u s he co an ice c ea u s

Sou ce ielsen S o e esea ch BC anal sis

hibit Iceberg cost structure of vanilla ice cream tub in

sho o candida e i his da a is e ues ed
L
oduc cos

n edien s acka in oduc ion is i u ion oduc d e isin e head oi e aile

cos o os u chase
ice
Sou ce Clien da a BC anal sis
 London Business School Case Book

BCG

Iceberg

hibit Iceberg global ice cream roduction lant utilisation sho o candida e i his da a is e ues ed

uro e America

a a

B C L B C

es e n u o e C

oduc ion lan si e oduc ion lan si e

oduc i e ca aci nused ca aci ased on hs e ea

am le of a ossible case structure o e ie a e he case in e ie

hat can Iceberg do to im rove their com etitiveness in uro e

Product Pricing
Cost structure Com etition
com are with com are with

he anded ice c ea s he anded ice c ea s i ed cos s is i u ion channels

n la el ice c ea s n la el ice c ea s a ia le cos s Shel osi ionin

Su s i u es Su s i u es
o o ions
o he desse s o he desse s
 London Business School Case Book

BCG

Iceberg

ifferentiation between oor average and su erior erformance o e ie a e he case in e ie

Poor Performance Average Performance Su erior Performance

raming roblem Su es s ha Se s ou a s uc u e o Se s ou a clea lo ical
rioritising issues su e a ke s a e doin anal sis iden i es ice s uc u e o anal sis
i hou clea a ionale se en s and ossi l eco nises ha a ke
o s uc u e does no ha su e a ke s ha e has h ee se en s
conside di e ences o e ecause ce e is i h ce e s on es in
ac oss he an e o elian on he o sell i s he id ice se en
su e a ke oduc s oduc s iden i es need o
unde s and ce e s
a ili o co e e

Identif ing relevant S a s askin o a a ie sks a se ies o s eci c e nes in o a ion

information o in o a ion no clea ues ions ela ed o a needed includin
lo ic sin le lo ical line iden i es a ionale iden i es ke
so e ke oin s o oin s and e lains hei
he a hs can ocess i lica ions o he
ans e s and o e on a hs esen ed

unning calculations Calcula es inco ec l ha Co ec l calcula es ealises lo e in ice

drawing conclusions from ce e canno co e e a ce e can co e e a a dilu e a ins and
facts su e a ke ice oin s lo e ice oin s e ce su es s a s o a oid
esco alue and uan i es iden i es oduc ion
a in u ilisa ion issue and
o oses solu ion
Calcula es olu e
e enue o o en ial

Identif ing ke im lications Li i ed o eeds o e asked den i es he ke case

and ne t ste s illo ical addi ional o ideas on o en ial insi h s d i es o
demonstrates creativit eco enda ions solu ions has a e ideas solu ions on hei o n
on he e o i o e o ho o i o e io i ises a lis o al e na e
o ulaic a oach o o uni ies oes e ond
e s end o e on he o ious h ou hou he
a ke in case ocess
 London Business School Case Book

The Interview Process

BCG

A T
Cu id s Arrow T

orth America v nited ingdom

Case at a glance o he in e ie e onl

Part A Part B Part C

Structure numerac Anal sis business udgement ecommendations summar

o not share an e hibits until Candida e is e ec ed o con inue sk he candida e

Part B i h hei case anal sis Sha e ac s o So ha eco enda ions ould
he case o e hi i s see he ollo in ou ake o Cu id s o s
Structuring the case a es o de ails hen hese a e ana e en
s eci call asked o he candida e
u clien is Cu id s o a
success ul su sc i ion ased online hen sha in an e hi i ask he es s a ili o s n hesi e and
da in a enc he cu en l o e a e candida e s uc u e hei eco enda ions
e clusi el in he S a ke he e ha does his e hi i ell us o usiness in ui ion and e a h
he a e he a ke leade Cu id s i h his a ec Cu id s o s en
o a e conside in en e in he in o he a ke
online da in a ke ha a e
he ain ac o s ha he should
conside es s usiness in ui ion and
he a ili o in e e da a
d a conclusions and iden i
es s a ili o s uc u e i lica ions
h o hesise and hink c ea i el
a ound a o le

arket si e estimation

o ould ou es i a e he si e o
he online da in a ke i he
candida e is s u lin cla i his as
ein e enue e ea

es s s uc u e nu e ac and
a ili o ake easona le
assu ions

ha does his ell us so a a ou

he a ac i eness o he a ke o
Cu id s o ha else do e need
o hink a ou
 London Business School Case Book

BCG

Cu id s Arrow

e case insights an e cellent candidate might uncover o he in e ie e onl do no ell he candida e

he a ke ill nea l dou le he soul a es se en n in o he a ke could e
in si e o e he ne ea s and is a al ead e ui e ia o anic o h o s ndica ed
ui e a en ed i h a leas a e co e i i e a ea s o he e is in S Cu id s o
ne en an s sha e and a o h and si e u ould e as es ia
Lo e i ds sha e o e he ac uisi ion and e andin o a
o a in is heal h a e ha e sha e and he soul s alle si e o ins an ne o k
cus o e a e cus o e a es se en is onl o e ec s e een su sc i e s i en
he a ke he an ici a ed ace o o h in
Cu id s o a s u le in a inc easin l shi he a ke and he likel lock in
en e in he a ke candida e o a ds soul a es like he e ec in his a ke ased on he
a ake a sli h l di e en ie S as online da in loses i s si e o a su sc i e ase
o he u u e di ec ion o he s i a u i is no he e e ac uisi ion and e andin o a
a ke and o i al s a e u is s alle si e ould e ad isa le
e ec ed o su o hei osi ion e all he a ke is a ac i e
i h si ila insi h s u a e ui e Cu id s o o
he e is ea e s i a a ound ada i s i a e ocus in he his case is lon and candida es
online da in in he o e o a ds he in e es s o ould no necessa il e e ec ed
han in he S al hou h cus o e s socialisin casual o nish i
his is declinin o e i e da in and o o a clea s a e
Cu id s o s co e s en h o co e e a ains he a essi e
in he soul a es se en in o ho a ea s and he
he S o he S a ke h ea o ne en an s
is less a lica le in he
he e his se en co ises lon i h a clea s a e
onl o he a ke a essi e a ke in ca ai ns
socialisin and casual da in and iend e e al ene sche es
se en s co ise o e c a e ke o es a lishin a
he a ke esence in he a ke

acts to share with the candidate if asked for s eci call o he in e ie e onl
Cu id s o cu en l has S Se u cos s o Cu id s o hibit unning costs for a
e enues o S e ea in he o o anic o h t ical online dating agenc
a e ini al e e ui en ar if a da o t o t
Cu id s o cu en l ocuses on cus o e su e ro ta ilit
ndin soul a es li e a ne s
o i s su sc i e s in he S a ea s o h is due o hibit S vs erce tions
a essi e a ke in ca ai ns of online dating ar if a d
ec ed e enue o Cu id s and iend e e al ene sche es a o t mar t m ntation
o in he is e on h d mo ra i diff r n t of
e cus o e hibit Historic and ro ected onlin datin it in t r
growth of the online dating t
market ar onl in art of
t a aft r t mar t i in
if a d a o t mar t ro t or
om tition
 London Business School Case Book

BCG

Cu id s Arrow

hibit Historic and ro ected growth of the online dating market

sho o candida e i his da a is e ues ed

CAG

he la e s
a le o
ake Chance
CAG
ake e u
a ch e
e enue

Lo e i ds
a ea s

hibit unning costs for a t ical online dating agenc Sho o candida e i his da a is e ues ed
ea
e cus o e

a ke in su o d in su o o al cos s e cus o e
 London Business School Case Book

BCG

Cu id s Arrow

hibit S vs erce tions of online dating sho o candida e i his da a is e ues ed

es onses to uestions from a surve

uestion o ou believe there is a stigma uestion hat are ou looking for from an
around online dating online dating agenc
es onden s

es onden s
S S

es ee ne eo le o socialisin
es u less han i used o e ind so eone o casual da in
o no an o e ee soul a e li e a ne
o he e ne e as

Sou ce Su e o a ando sa le ea olds o he S and n in each coun

am le of a ossible case structure o e ie a e he case in e ie

ain factors affecting the attractiveness of the online dating market for Cu id s Arrow

verall attractiveness of arket attractiveness Com etition in relevant

arket entr method
the market to Cu id s Arrow segment

alue o osi ion in he S ndica ed o S si e

Si e Cu en co e i ion
S s in o

o h a es e en an s anic o h

o a ili c uisi ion

 London Business School Case Book

BCG

Cu id s Arrow

am le calculation for the si e of the market o e ie a e he case in e ie

rivers Assum tions

o ula ion

in a e a e an e o
da in e si es s

umber of
o a e an e ha
customers
a e sin le

o sin le o en ials
Subscri tion revenue ha a e in e es ed in
Total si e of the in e ne da in
market ear

illin o a o a
su sc i ion se ice

evenue er customer Su sc i ion ee

on h
e on h
ea

su e io candida e a also iden i o he e enue

s ea s e ad e isin and e en s
 London Business School Case Book

BCG

Cu id s Arrow

am les of creative ideas to ma imise success in the o e ie a e he case in e ie

Candida e a ake di e en ie s o o i al s a e no all o hese ill a l

Potential views of challenges Potential creative solutions

The has a stigma around online dating com ared Ada t marketing to integrate with the market
to the S market Be less o e a ou ndin he ne
hasise socialisin and ee in ne eo le
Su le en si es i h in e son social e en s

Ha Hearts is e anding aggressivel through Anal se the target segments of Ha Hearts

marketing cam aigns Su e he a e cus o e s o unde s and hei needs
and iden i hose e a ea s
his se en is a ac i e o Cu id s o in he
con e o i s ne and o e ini ial si n u deals e
s on hs ee and so e ee e en s

customers are looking for a different t e of online ebrand in the towards a more social focus
service socialising casual dating less geared o ia e andin o a ac a ide ool o sin les
towards nding a life artner odi he e si e o e hasise ee in iends
casual da es as ell as a ne s
e e ula ana ed e en s o e sin le eo le
o e he in a un se in e ice ska in o lin

Although market is toda focussed on and e isting S site directl into the with
socialising casual dating with ra id market strong branding to reduce online dating stigma
growth online dating is e ected to ra idl lose ain ain ocus on ndin li e a ne s
its stigma and customers will increasingl seek life essi e ide a ke in ase sho in eal
artners online as has been the case in the S e e s and a ches o e hasise ha e e od s
usin i
ec o en iall slo o h un il s i a educes
 London Business School Case Book

BCG

Cu id s Arrow

ifferentiation between oor average and su erior erformance o e ie a e he case in e ie

Poor Performance Average Performance Su erior Performance

Structuring the anal sis nl iden i es one o Se s ou a ood s uc u e Se s ou a clea lo ical
o ac o s ha a ec o anal sis iden i es a s uc u e o anal sis
he a ac i eness o ini u h ee ac o s ouches on ide issues
he a ke e a ke s a le o o ide a e such as he a ac i eness
si e o h and needs e lana o oin s a ou o he in he ide
si ni can o in o each ac o con e o he clien s
hink o o he ac o s usiness e co a ed o
a ocus e clusi el on o he o en ial a ke s
e enues cos s

aking a market si e S u les o iden i he akes a clea s uc u e akes a clea s uc u e o

estimate ain d i e s o he a ke o es i a ion akes es i a ion and co le es
oes no ha e a ou h no e e e o s i h anal sis i h con dence
idea o o ula ion nu e ical s e s and en husias
S u les o o ide akes insi h ul
a ionale o es i a es co en a a ound
akes asic nu e ical es i a e assu ions
e os ckno led es o en ial
o he e enue sou ces

Inter retation of gra hical eeds si ni can Co ec l in e e s ain den i es all ain ends
gures identif ing ke info o in o unde s and co e i o ends o lus o e su le ea u es
ou u a s onl asic a h is a le o calcula e o a hical ou u s
conclusions o he da a o a in unde s ands asks o in ues ions
li le insi h so e o he su e ndin s e o e kno ha is
i h li le o in d i in he dou lin o he
a ke si e and su es s
h o heses s n hesi es
clea l e een he a ke
and su e e hi i s

S nthesi ing ke oo ecollec ion o ain Can co ec l d a Su a is a ell

ndings and making ndin s laund lis o e he ke ndin s i h s n hesi ed and s uc u ed
recommendations ecall i h li le s n hesis easona le s n hesis o ie ha inco o a es
demonstrating creativit insi h na le o ideas needs o in all he ain ndin s
o ide c ea i e ideas o o co e u i h c ea i e i es inde enden l o
success in he a ke e ideas o Cu id s o o he need o a chan e
su es s us o e in a e success ul in s a e o en in o
lo su sc i ion ice he i es a clea
s ae eco enda ion
and a ionale and akes
c ea i e su es ions
 London Business School Case Book

Boo Com an
A T
Business Class Airline T

uro e

Case uestion
u clien is a ud e ai line conside in en e in a ne a ke o usiness class i h s he a e conside in unnin an
all usiness class se ice i hin u o e he an ou ad ice on he he his is a ood idea and i so ho he should
do i

Intro acts ell he candida e i asked e Insights do no ell he candida e

ha is he clien s cu en usiness ssues e is a ound he and o a lo cos ai line
A an e o chea sho haul i h s o he o a ious eanin he e andin i h e necessa
u o ean des ina ions
Landin slo s a hu ai o s a e c i ical o usiness
o he o e an usiness class i h s a he o en a el and ill e e ha d o ac ui e
A o u assen e s can a o a ious u ades such
as s eed oa din and ea e le oo he do no ha e he ull se o ca a ili ies e ui ed o
deli e a usiness class se ice so choice o a ne s
o is hei cu en and e cei ed ill e c i ical
A e el chea u e lo uali se ice

Case at a glance

Part A Part B Part C

S uc u e he case and discuss he den i so e inno a i e se ice o k ou he cos o eak e en on a

challen es ha ill e in ol ed in o e in s o he lu u ou is a ke i h o ienna
en e in his a ke

Structure se a classic Cs a ke en s uc u e

arket ntr Structure

Customers Com etition Ca abilities ntr ode

Business a elle s ncu en i lines is in slo s a ai o s Se u ne su sidia

o ision o on oa d and
Lu u ou is ossi ili o ne en an s c ui e e is in co an
ai o se ices

Su s i u e oduc s B and
 London Business School Case Book

Boo Com an

Business Class Airline

Structure a les o ical ues ions ha he in e ie e could ask a ound each o he ou a eas

Customers Com etition

Business Travellers o ill incu en ai lines eac o his

o ice sensi i e a e he e al e na i es such as ain a el se ious co e i ion
ha is os i o an o he Can he osi ion he sel es as co e i ion o o he
ai lines econo o e in s
u ur Tourists
s he e a likel a ke o his
o ould i di e o he a ke o usiness
a elle s

Ca abilities ntr ode

ill hei ud e and e a li i a ion o an asse Can his si l e launched as ano he ou e i h a

ha ca a ili ies do he ha e as a ud e ai line ha di e en se ice
a e a icula l use ul ho could he a ne i h
ha do he no cu en l do ha he ill need o e s an ac uisi ion o a ne shi a ia le o ion
ood a Should he conside se in u a ne co an
o he ha e access o landin slo s

Creativit e e a e so e ideas o inno a i e se ices in his a ke

Basic Ideas ore Innovative Ideas
l a scheduled se ice o hi h end holida eso s Cha e o lu u c uise lines o o e assen e s i h s
a ne i h lu u ho el chains and a el co anies o o he shi
o e acka es o no scheduled i h s u ocus on one o i h s
l o e ional ai o s and include a chau eu o e o ke u o ean social e en s onaco and i
assen e s he e a is ashion eek LBS innin B
e acka es includin en o hese e en s
un on oa d e en s such as ine as in s
e e e ience i h s e o e he o h ole
 London Business School Case Book

Boo Com an

Business Class Airline

Calculation u s des ina ion ill e ienna o uch ould e ha e o cha e o eak e en ih
sea s lled

ha a e he ain cos i e s ha ou ould e ec an ai line such as his o ace

Cos s

i o cha es
uel ica d lease i c a se icin ice cos s he o e heads Landin assen e Ca e in cos s
use o acili ies

ilo s h
k i h i h i h i h i h
ce h

he u es in each cos i e can e i en o he in e ie ee al hou h he should e ec o ake a easoned

es i a e he e ossi le
n cos i e s he in e ie ee does no iden i should e i en o he
he in e ie ee should hen o k h ou h o he ans e elo

evenue assen e s cos s e assen e

 London Business School Case Book

Boo Com an

Business Class Airline

ifferentiation between oor average and su erior erformance o e ie a e he case in e ie

Poor erformance Average erformance Su erior erformance

raming roblem ails o o e a s uc u e ses a Cs s uc u e ell ses he s uc u e o
rioriti ing issues o o unde s and ha is and iden i es so e o he iden i he e he a o
ele an i hin i a o challen es challen es lie and has
ideas a ou ho he
i h e esol ed

Identif ing relevant S u les o iden i ha den i es a nu e o he den i es a nu e o

information he cos ca e o ies a e ao cos ca e o ies can he cos ca e o ies
does no ask he i h ake easona le ule o unde s ands ha d i es
ues ions o e he e hu es i a ions he and can ake
es i a ions

unning calculations S u les i h a i h e ic eaches an ans e and eaches an ans e

drawing conclusions from una le o o k ou a eak sho s he a ili o sense easil and de ons a es
facts e en u e check hei nu e s s uc u e in hei a oach

Identif ing ke im lications hinks o onl asic ideas Co es u ih ideas Co es u i h a ide

and ne t ste s o he ai line se ice o he ai line se ice hich an e o ideas includin
demonstrates creativit o a l hin s ha a e a e a leas sensi le inno a i e ones ha a
ein done al ead no ha e een hea d e o e
 London Business School Case Book

Boo Com an

a id argin Im rovement P IT

Geogra
uro e h of the case

Case uestion
u clien is a acka in coa in co an ha oduces coa in s o o ec e e a e cans he a e e e iencin a o
a in e osion and ould like ou o hel he es o e o a ili i hou odi in hei cos s uc u e

Intro acts ell he candida e i asked e Insights do no ell he candida e

he e and ha is he co an oducin i hou ouchin a he cos s uc u e olu e ice
A he o ide u o ean lle s i h coa in o he inside oduc i a e he ke le e s o i o e a ins
o e e a e cans
he os e ec i e a in le e is ice hence e shall
ha e lains he a in e osion is co e i ion acin ocus on i o in he icin s a e
he sa e challen e
A he eason is ac oecono ic a slo econo ic eco e
since he nancial c isis a a a e ial ola ili ha e een
a ec in he en i e a ke

ha is he s eci c o ec i e ha is he deadline
A o a in i o e en is e ec ed i hin s

Case at a glance

Part A Part B Part C

et s review the main ricing Identif some innovative service et s estimate the rice increase
strategies to rices et s look at a value based ricing that could be reali ed thanks to a
iscuss he ain icin s a e ies a roach for their roduct what value based ricing a roach on
cos ased alue ased co e i i e could be the bene ts that customer their roduct
ased icin s a e ies are looking for Based on he ollo in ene s
a ine o en ial cus o e ene s echnical ssis ance Coa in as e
o oduc ea u es se ices educ ion Sc a ch esis ance le s
o e in s assess he o en ial ice i ac
o al ain ain e and ice
inc ease
 London Business School Case Book

Boo Com an

a id argin Im rovement

am le of Structure

argin evers cluding Cost

evenue Price olume

a imising Pricing Increasing Sales olume

nc ease e a e Sellin ice o e is in oduc s nc ease a ke Sha e a e is in cus o e s

las ici o e o en o e e co and o lon e e c

o e oduc i sellin o e hi h a in oduc s each ou o ne cus o e s

osi ionin i hin he e is in a ea o in ne e ions

Structure o do ou se ice and ha a e he ain icin s a e ies

alue Bene ts riven aw aterial Cost riven arket Com etitor riven

Base ices on oduc and se ice Base ices on a a e ials ola ili Base ices on co e i o ices
ene s o e sha ed e een he o educe a in e osu e su l cu e and su l de and
cus o e and he su lie alances

o ks e e i oduc o se ice o ks e e i a a e ials a e o ks e e i co e i o ices

ene s a e e lica le o he inc easin and a e e ec ed o a e kno n and collec in he is
cus o e s ideall uan i a le con inue o do so le al
o ks e e i cus o e kno s o ks e e i ice ne o ia ion o ks e e i ice elas ici is
he ne es al e na i e ices e iod is sho e han he calcula le
and ea u es u chasin e iod
 London Business School Case Book

Boo Com an

a id argin Im rovement

Creativit Le s no ocus on alue ased icin ha could e he cus o e ene s o a coa in oduc
o he inside o cans o soda
Below Average Average Above Average
hinks a ou a cou le o oduc Su es s Sa e as e o e lus a cou le o he
ea u es u does no ana e o educe do n i e o inc ease ollo in
ansla e he in o ene s o he oduc i i o ec and i a e sc a ches
cus o e s educe oduc usa e as e cus o e clai
educe la ou cos o ide local su o
end oduc li e e ec anc
ul l le isla ion co liance
Shi o de in es onsi ili o he
su lie

Co es u no onl i h oduc
ela ed u also se ice ased ene s

uantitative anal tics ha is he o en ial ice inc ease o e eali ed hanks o a alue ased icin
s a e on a coa in oduc o soda cans
ha is he ice and olu e sold o ou oduc
A e sold Tons o A a oat a g o ou onl clien

ha is he ne es al e na i e and ha is i s ice
A he closes co e i i e oduc is rim oat and cos s g

ha a e he ke di e en ia in ene s o ou oduc s
A he ain ene s a e echnical e e ise coa in as e educ ion and sc a ch esis ance

Bene ts Assum tions Calculation Total Saving

Price Im act g

echnical echnicians on si e a s ea a s o echnician o al

ssis ance Cos o a echnician ea ail Cos
a ellin enses a a ellin cos

Coa in as e oduc sa ed oduc Sa ed o al

educ ion Cos o dis osal on olu e
S is osal

Sc a ch educe sc a ched cans o he oduc Sa ed o al

esis ance o e all oduc ion Cans
a s o coa in can Can cos
illed can cos Can

o al
Total
Potential Price Increase g
 London Business School Case Book

Boo Com an

a id argin Im rovement

ifferentiation between oor average and su erior erformance o e ie a e he case in e ie

Poor erformance Average erformance Su erior erformance

raming roblem ocusses on o en ial cos nl one le el ee a s a leas a le el ee
rioriti ing issues sa in s o o ic us en ions ice ice o S
olu e oduc i
olu e o ne
e is in cus o e s

lains i h case
e inolo

Identif ing relevant Co es u ih nde s ands he a ines ele an

information less han icin indus o en ial cus o e
s a e ies i u es ou o ec i es ene s
Co es u i h less Co es u i h ideas o e e s o he lle s
han oduc ene s i o e olu e ice su l chain
Lis s icin inds all icin
s a e ies s a e ies

unning calculations
drawing conclusions from o clue on ho o i es uni s o akes a e ec o o co e
facts assess he e iu calcula ion e o once u i h he nu e ical
ene a ed each inds he o en ial solu ion oac i e
ene s nancial ain o each a ou assu ions
o e s o include he ene s u does u s ou co e in
ice di e ence s no u ndin s in e s ec i e
he co e i ion in nal e s ec i e and does en ions ne s e s
ou co e no do he So ha i cul o ass i all
i es uni s da s o he cus o e
ea o ons s
ul i le calcula ion
e os

Identif ing ke im lications us hinks o icula es a u s e o e lus

and ne t ste s inc easin he ice includin clea ans e hinks o a s a e
demonstrates creativit he e ac nu e oi o e a ins o conduc he icin
es i a ed du in he nde s ands he need ne o ia ion
case o sha e he ene s ncludes ne s e s in
i h he cus o e he a u
 London Business School Case Book

Boo Com an

obile etwork evenue Generation P IT

nited ingdom

Case uestion
u clien is a o ile ne o k o e a o in he has ecen l een su e in o hi h cos s d i en inc easin da a
usa e and his has led o a all in o he an o e lo e o ions o inc easin hei e enue

Intro acts ell he candida e i asked e Insights do no ell he candida e

s i us da a usa e d i in cos s he a ke o o ile ne o k o e a o s is eco in
A es o h in da a usa e leads o he need o cons an co odi ised he e is li le o dis in uish e een
in es en in he ne o k in as uc u e and hi he unnin ne o ks and cus o e s s i ch easil i ices a e
cos s oo hi h

e e in e es ed in educin cos s he one in o ile in e ne is ade hose ho

A cou se u i s ou o ou sco e con ol he con en no he o o da a

ha is he cha in s uc u e
A he e is a on hl line en al hich includes so e calls
and S Ss and e ond ha calls a e cha ed e inu e
S S e essa e and da a is unli i ed on all a i s o a
on hl ee

Case at a glance

Part A Part B Part C

ha a e he d i e s o e enue o Be ond he co odi usiness o uan i a i e assess en o he he

a o ile ne o k o e a o and ha ans i in da a in ha o he a s i ould e e e o cha e cus o e s
i o e en le e s do e ha e could a ne o k o e a o ene a e e o da a used a he han a ed
e enue o he o h in he o ile ee and a uali a i e ie on he he
in e ne i is a ood idea o no

Structure a icula l ood s uc u e o his case is one ha eall unde s ands he eakdo n o
uan i and ice

evenue t Price

uantit Price

u e o indi idual hones e ices e on hl ed cha es e

i ed on hl Line en al
cus o e s cus o e da a oa in

he se ices e ice e uni o usa e ice o con en

Le el o usa e
con en inu e B S S a a le o he ne o k
 London Business School Case Book

Boo Com an

obile etwork evenue Generation

iscussions around the structure Could in ol e so e o he ollo in

Possible iscussion To ics

o haus i e

umber of evices nc ease a ke sha e innin cus o e s o o he ne o ks

o hose cus o e s also consu e a lo o da a ha ill he i ac
on cos s e
C ea e ne de ices ha eo le a si n u o in addi ion o hei e is in
ones
ha so o de ice o ill e cha e o he da a on i

sage i e inc eased usa e o hose se ices he e e a e a le o cha e on a

e usa e asis
ould e ha e o lo e ice o do ha e he e a s e could
inc ease he alue add o ou se ices
Con e sel e could o discou a e da a usa e i i is cha ed on a a ee
asis o educe cos s a he han inc ease e enue
o n oduce li i s

Pricing odels nc ease he ed ice e cha e o da a

Could his ake us unco e i i e
n oduce a a ia le cha e o da a ased on ho uch eo le use e a
cos e
ould his sca e o he hi h da a use s ould ha e en e a ad hin
se a co ina ion o he o such as a an e o di e en acka es
o i h ou se en ou use s
 London Business School Case Book

Boo Com an

obile etwork evenue Generation

Creativit ans i in da a is eco in co odi ised o else i h he ne o k ene a e e enue o

o ile in e ne

Possible a s of Generating evenue

o haus i e
Positives egatives
Create content and charge he ne o k ill e he ull e enue o e o k o e a o likel o ha e no
customers for it an con en i c ea es e e ience a ene a in con en

Charge for hosting Can o ide cus o e s i h a eas a e di cul o e suade con en
content i e a web ortal a o ndin sui a le con en o ne s o o ide con en i he can
where content owners Could e a dis in uishin ea u e o o e i o ee else he e
a for their content to be he ne o k e le sSoe
included

Introduce advertising to ene a es eas e enue Likel o ee esis ance o

the network cus o e s ho a e al ead a in

ther services e g credit C ea es a ne e enue s ea o he e ui es close in ol e en o de ice

card readers stolen car ne o ks anu ac u e s and access o ne
trackers etc a ke s

strong candida e ill iden i a nu e o a s o one isin con en and c ea in u he o s o usa e

unde s and he osi i es and ne a i es o each and o a ie on ha he ne o k has he ca a ili ies o ac uall
do he a e o his s a e i hou o in

n average candida e ill iden i so e addi ional a so ene a in e enue and unde s and hich a e oe
sui a le han o he s

oor candida e ill iden i one o o addi ional o ions u eco end hose ha a e no likel o e sui a le
o a ne o k o e a o o do
 London Business School Case Book

Boo Com an

obile etwork evenue Generation

Calculation o uch addi ional e enue could e ene a e i e cha ed use s e a he han
on hl ed ee ould ou eco end doin his

he use s u e and he usa e da a is

i en o he candida e al hou h he should his should all e calcula ed he candida e
ask o i s

o
ea e m

nd

ea e m

d
use s
ea e m

Bo o
Total m
o da a acka e

Additional revenue
ed ee
m m

o osed icin
Cu en icin
 London Business School Case Book

Boo Com an

obile etwork evenue Generation

ifferentiation between oor average and su erior erformance o e ie a e he case in e ie

Poor erformance Average erformance Su erior erformance

raming roblem ses a s anda d o ood s uc u e ha is he a ili o unde s and
rioriti ing issues a e o k and e a ines a le o eak uan i and hich easu e o uan i
cos s ins ead o e enues ice do n o a leas is ele an de endin on
co onen s i hin each ho he ice is cha ed

Identif ing relevant oes no unde s and ha s a ini u iden i es ould iden i ha is
information he ed ee o da a is he ha cha in o da a i h d i in da a usa e and
o le and ocusses on a ed ee is he o le hen e in o discuss o he
o he ac o s ins ead and su es s al e na i es a s o ene a in e enue
o his

unning calculations ails o accoun o he he i h ans e as a n unde s andin o

drawing conclusions from cu en e enues o a ini u s uc u ed he he his is a ood
facts si le a e a e o da a use each usa e se en idea ased on o e han
ac oss all cus o e s a co a ison o nu e s
sho in ood co e cial
sense

Identif ing ke im lications hinks in e s o icin ne o o ood ideas s e an a e a e

and ne t ste s odels onl ails o a ound one isin con en candida e u ould sho
demonstrates creativit unde s and he e he and unde s andin o he a eal unde s andin o
one is in o ile in e ne os and cons o each he e one is ein
su es s hin s ha ill ade in o ile in e ne
also d i e u cos s and ha he ne o k has
he ca a ili ies o do
 London Business School Case Book

Consulting
ewCo Petrol etailer I ST T

Case Background
ou a e an en e eneu on an island o e e ou do no ha e an She asks ou o es i a e ha ca i al
o illion eo le ou eel ha he e eanin ul ca i al and a e oin o ou a e likel o need in he usiness
is an o o uni o in es in e ol need o aise he in es en e ui ed
e ailin he e a e al ead e ol so ou isi ou local anke
s a ions on he island

o ed he in e ie e ill cla i ha no addi ional in o a ion is a aila le o ans e he ues ion

ou ha e no een i en uch he a oach se ou elo s a s o e he i h a easona le assu ion

in o a ion i h hich o o a de e inin he o en ial sales o o he e ui ed a e o e u n on
ie o he si e o he in es en he ne e ol ou le hich in u n ca i al he a oun o ca i al e ui ed
e ui ed Be o e s a in o ans e he de ends on he o al a ke si e o he ank can e calcula ed
ues ion i is o h akin a inu e and e ec ed a ke sha e he
o hink h ou h a lo ical a e o k econo ics o he usiness a e hen
o s uc u e ou es onse and o a ed ou o de elo an es i a e
e lain he in ended a oach o he o he o a ili o he usiness
in e ie e a he ou se sin his es i a e o i s o a ili

s on candida e ould ecei e no u he uidance he e necessa candida es ould e o ed o add ess

each o he ollo in a eas in u n o a i e a an es i a e o he ca i al e ui e en
 London Business School Case Book

Consulting

ewCo Petrol etailer

uestion hat is the total market si e for etrol retailing

his can e ackled ei he a an l e na i el he a ke si e can e ddi ional oin s ha could e
indi idual o household le el an ackled a he household le el e e en ioned o i o e he a ke si e
indi idual le el an assu ion ould assu ions ould need o e ade es i a e ould include ac o in an
need o e ade a ou ho an a ound a e a e nu e o eo le e a a ion ha is a lied o uel e o e
o he o ula ion o n ca s household o o ion o households de i in he nal alue o he a ke
d i e and he e o e u chase e ol o nin a ca and a e a e e ol o he e s ec i e o e ol e aile s
n assu ion ould also need o e endi u e e annu e ha s n addi ional he con i u ion o
e ade a ou hei ical annual ased on a e a e ilea e e annu ancilla e enues e con enience
e endi u e hich could e ased on and uel econo e ail o a s on he o ecou could
assu ed iles a elled ical uel also e conside ed
econo and ical uel ice

am le calculation

households on he island assu in eo le on a e a e e household

o households a e assu ed o o n ca s

e a e annual ilea e o k e household

nnual e endi u e o
k iles iles e allon allons li es e allon li es e li e

nnual e enue ne o a c assu in a ake o c

ncilla e enue o
c e uels e annu assu in a e a e e uel si e o c li es e isi
a e a e ancilla s end e isi o

o al a ke alue c n

uestion hat share of the market might ou be able to get

he a ke si e es i a e can e
di ided o o ain he a e a e am le calculation
e enue e e ol ou le n ac ice
ho e e he i e si es o loca in a ke si e n
a e ol ou le a e likel o ha e een
aken al ead and he e o e so e e a e e enue e s a ion a ke si e s a ions
do n a d ad us en o e ec his
ould e e ui ed o de elo an o en ial e enue o o osed in es en e annu assu in
es i a e o he likel e enue o he declinin e enue o ne si e loca ions
o osed ne de elo en
 London Business School Case Book

Consulting

ewCo Petrol etailer

uestion hat are the economics of the business likel to look like
a in al ead es i a ed he e enue
o he si e he e a e o ossi le am le calculation
a oaches he e ne ould e
o iden i he a ious ele en s o ical o e a in a in
ed and a ia le cos s and de elo
es i a es o each o hese he B k
second si le a oach is o
conside ical o e a in a ins
o e ail usinesses and assu e his
usiness ould e o in line

uestion hat is the re uired rate of return

n a ke e uili iu he e u n a in de i ed he i lied in es en
achie ed on an in es en on an am le calculation a oun i should e sense checked
inc e en al e ol s a ion ill e us o ensu e i a ea s easona le and
su cien o ee he a ke a e o ssu ed e a e ui ed io assu ions e isi ed he e
e u n o his asse class a in aeo eu n he asse necessa S on candida es ould
calcula ed he B o he ou le his class ould e ui e a e u n conside hich assu ions he nal
ela ionshi can e used o de i e he a o e he isk ee a e u is esul is os sensi i e o and ould
i lied o al in es en ca i al ha o en iall less isk han C a a icula a en ion o he de ee
ould e necessa o ain ain his s le in es en s ha icall o unce ain a ound he alues
e uili iu s a e e ui e a a e e u n o c a i u ed o hese i e s

n es en B o
k
 London Business School Case Book

arakon
Air et Inc P IT

orth America

Case Summar o in e ie e onl

e all ai c a anu ac u in is i e nc is losin one in he u o o e lanes Lesso s in
a o a le usiness u a ke e en ine usiness o e e he u chasin la e olu es o ai c a
econo ics a de endin on he a e a e la e in he e en ine ha e een a le o e e si ni can
usiness se en i e a ici a es ai c a a ke is o a le i e u in o e o e ou clien and
in o se en s has ained si ni can a ke sha e achie e la e ice concessions
e en ine o sea ai c a a essi el se in he Lesso
o elle o sea ai c a cus o e se en hich ends o

Interviewer s iscussion Guide

Ste Provide the candidate with the following roblem statement

i e nc is a S anu ac u e olu e inc ease ea o e ea i e s senio ana e en ea

o s all e ional ai lanes o and es ec i el and has hi ed a ea o consul an s o
anu ac u es o es o ai c a e enues o illion and hel he co an de elo a alue
e en ine o sea and illion es ec i el a i i in s a e e need ou
o elle ai c a o sea hel o unde s and
l hou h o e all i e u ned ha a e he ke issues and
n i e deli e ed e a o o a ili a ied o o uni ies a i e
en ine ai c a and o elle si ni can l usiness ha solu ions ould ou
ai c a his e esen ed a uni eco end o ana e en

Ste Structure the Problem

ncou a e candida e o de elo an a oach o oo cause he o a ili issue o ide he ollo in in o a ion
ei he in ull o as e ues ed he candida e

et ngine Aircraft Business Pro eller Aircraft Business

inan ial m of al inan ial m of al
e enues
C S
S
eli e he
et Income
Ca i al Cha e a
conomic Pro t

cono ic o e nco e Cha e o Cos Ca i al

o e cono ic o includes a cha e ha accoun s o he e ui ed e u n on ca i al hen alue is c ea ed

hen alue is des o ed e en i e nco e is osi i e and a he usiness ene a es e ac l he
e ui ed e u n
 London Business School Case Book

arakon

Air et Inc

sin a ical o a ili a e o k he candida e should ake he ollo in o se a ions

he e n ine usiness is he o le lies i h he e e en ine a s a e co le and

un o a le hile he o elle n ine usiness icall ou h o s eciali ed
usiness is hi hl o a le s
oss a ins in he e n ine Additional information
usiness a e uch lo e han he Cos s and hence a ins a e in
o elle usiness line i h a ke a e a e

Ste Anal e the et ngine egional Aircraft Business

he candida e should ocus he es o he discussion on he e n ines usiness and unde s andin a ke si e

o h and o a ili i hin he se en o ide he ollo in in o a ion in ull o as e ues ed

arket Structure and conomics

verall arket conomics

m
o al S a ke Si e
e a e Cos s e ica
o e s Sold
o al Ca i al n es ed
Cos o Ca i al

arket Structure

deliveries

Co eio CAG
deliveries Co eio
Co eio
eli e ies

Co eio Co eio
Co eio Co eio Co eio
Co eio
o

Co eio
Co eio i e nc
Co eio Total arket
i e nc
i e nc
 London Business School Case Book

arakon

Air et Inc

e insights

he a ke is o a le and o in i h he a e a e ood andidat o ld to lor t mar t ro t

co e i o ene a in econo ic o a ins Additional information for di ion
o al e enues n
e enue e ai c a n he a ke is e ec ed o con inue o in a o he
Cos e i c a o n Ca i al ne ea s due o
n a Chan es in e ula ion e en Skies and
cono ic o e ai c a n n lo ali a ion ndia China ha e li ed es ic ions on
n S ased ai lines o se ice hese se en s
a in he cu en cus o e ase o i e is la el S ased
i e has he la es a ke sha e a as c Success o ne e usinesses such as ac ional e
ea s ack o a s i e sha in o e s
i e o in a a ke o in a d ec ed e lace en c cles as olde e s a e e i ed
ou o he co e i o s con ol he e ainin a ke
an in o
he e is no do inan co e i o in he e en ine
usiness

Com etitive Position

nce he candida e iden i es ha i e has ained a ke sha e o e he las ea s he she should e lo e he

easons o i n o a ion o su o in his discussion

i e is icin i s oduc lo e han he a ke on rforman an e o iles hich is si ila o

a ea e he can inc ease ice and s ill ha e he a ke a e a e
a co e i i e oduc hich o ides a ai ene o c aint nan and A t if he a o i o
cus o e s he a en ed e en ine ai c a ain enance
co anies ha e he ca a ili ies and a s o se ice
he e doesn see o e uch di e en ia ion e sus i e s ai c a
oduc s o co eios he e o e us inc easin he ice ill u i e
a o it Si ila o indus s anda d esul in in lo in ids o he clus e i hou an o e ad an a e i e
s i chin cos s o ne cus o e s ill lose a ke sha e ela i e o i s cu en osi ion

Air et s Customers

nce he candida e iden i es icin disad an a e as he issue di ec he con e sa ion o lead o cus o e
se en a ion a he oo o he issue o ide he candida e i h he ollo in in o a ion

et ngine conomics et ngine Customer Segments

m r Air raft otal m Af nt ndi id al or orat tom r or
i ed Cos i e e enues
a ia le Cos Cus o e s
Total Cost i c a sold
oe a ke sha e
e i c a cos s ased on olu e o lanes
o al Cos includes Cos o Ca i al

Sha e he ollo in in o a ion as e ues ed he candida e

uen ndi iduals Bu ai c a du in a u in c cle a o i a el e e o ea s
Co o a e Cus o e s Bu ai c a os l la e ul ina ionals o e ecu i e a els
Lesso s Bu o o e ai c a and lease o ai lines o e n en s co o a ions e c
 London Business School Case Book

arakon

Air et Inc

e Insights rivers of Segment Pro tabilit

sk he s uden o co uea e a e ice cus o e se en

he ain d i e o o a ili he Lesso se en akes Lesso s co ise he la es

e een se en s is solel la e u chases and e loi s a cus o e se en o e han
ice i hou doin an ah ne o ia in le e a e o e i e o he o al a ke olu e
since o e a in cos e ai c a Se en lanes ou
oduced and deli e ed is he e a e e enue e cus o e is sha e
sa e e a dless o he in ended ai c a e Se en lanes ou
cus o e ai c a o Lesso s co a ed o sha e
o uen ndi iduals and Se en lanes ou
o Co o a e Cus o e s sha e

Ste Generate Alternatives

o he candida e o de elo al e na i es o sol in he o a ili issues So e su es ions ased on

a ici a ion choices

nc ease ices o Lesso s o i he Lesso s se en Si ila n e he leasin usiness

e e e lose cus o e calcula ions sho ha he loss o a d in e a ion lso c ea es a
ai c a e a e calcula ions o scale akes he o he o h ea o he Lesso cus o e and
he candida e should see ha se en s un o a le as ell i o e ne o ia in le e a e
i h such elas ici his al e na i e canno co e ed cos s
canno e o a le e he
a Increase in Price to mn
losing customer
o al i c a s sold

c o al i c a s Cos

d o al e enue

e o Loss n e ains
un o a le a and
i e losin o cus o e s
 London Business School Case Book

arakon

Air et Inc

iscuss i h he candida e ossi le os and cons o each al e na i e S eci call o l e na i e en e he leasin

usiness he ollo in in o a ion should indica e ha i is a ood o o uni ha can hel o u he Lesso
se en as ell

arket Growth he e en ine arket conomics Customer i e has a ke in

e ional ai c a leasin a ke is i he ai c a leasin a ke ela ionshi s i h all ai c a end
la e and o in n he ne is o a le i h he a e a e use s ho a e leasin hei ai c a
ai c a leasin a ke e esen ed co e i o ene a in so o he co an s ai c a lesso
al os o all ne ai c a cos o e ui cus o e s i e o ks i h hese
deli e ed i h o e a in leases ii he ke d i e o o a ili is end use s o hel he con u e
co isin hal and is e ec ed o cos o unds i e ould e he lane du in he on end o
o e ea a ai he sales ocess

Com etition h ee ai c a
lesso s also i e s cus o e s
do ina e he a ke i h a
co ined sha e o

i e e i s and he candida e has eached a sa is in solu ion o he o a ili issue use he es o he i e o

ains o addi ional o h al e na i es o he usiness he ollo in is a s a e lis

he a ke s e n ine eo a hies n e na ional nde s and he o elle usiness

Se en s o sea e s ansion o nd a enues o o h
se en ne ac ional e ne shi
a ke
 London Business School Case Book

c inse Com an
A T
ldPharma T

uro e

Case Background
his docu en is in ended o hel ha he ollo in case is a ood he e a le elo is se u o each
e a e ou o he case o ion o a e a le o he e o case an o ou ho o a oach a ical case
c inse Co an in e ie hile ou in e ie e s use o e e in os
in e ie e s a c inse ha e a ood in e ie s he in e ie e ill onl ask
deal o e i ili in c ea in he cases a selec ion o he ues ions in his
he use in an in e ie e elie e case

Conte t
he in e ie e ill icall s a he case i in a ie o e ie o he con e endin i h a ues ion ha is he
o le de ni ion he end o he desc i ion ou ill ha e an o o uni o ask an ues ions ou i h ha e o
cla i he in o a ion ha has een o ided o ou

Le s assu e ou clien is ld arma Biolo ical is as l di e en Should ac uire

a a o ha aceu ical co an o s all olecule o ain Bio uture
ha aco i h S illion hese ca a ili ies ha acos can
a ea in e enues s co o a e uild he o sc a ch a ne i h
head ua e s and i a esea ch e is in s a u s o ac ui e he i e do n i o an
and de elo en cen e s a e in Since i s co e i o s a e al ead in o a ion
e an i h e ional sales o ces se e al ea s ahead o ld arma
o ld ide ld arma an s o u s a i s eel ee o ask in e ie e o
iolo icals o a ac ui in e lana ion o an oin ha is
ld arma has a lon success ul Bio u u e a leadin iolo icals s a no clea o ou
adi ion in esea chin de elo in u ased in he San ancisco a ea
and sellin s all olecule d u s Bio u u e as ounded ea s a o
his class o d u s e esen s he se e al o inen scien is s and
as a o i o d u s oda includin no e lo s eo le is u licl
as i in and os lood essu e o aded and a i s cu en sha e ice
choles e ol edica ions ld arma he co an is o h a ou S
is in e es ed in en e in a ne a idl illion in o al
o in se en o d u s called
iolo icals hese a e o en o eins ld arma has en a ed c inse
o o he la e co le olecules ha o e alua e he Bio u u e ac uisi ion
can ea condi ions no add essa le and ad ise on i s s a e ic ih
adi ional d u s ld arma iolo icals s a e
 London Business School Case Book

c inse Com an

ldPharma

uestions

n c inse Co an case in e ie s he in e ie e ill uide ou h ou h he case i h a se ies o ues ions ha

ill allo ou o dis la a ull an e o o le sol in skills Belo is a se ies o ues ions and o en ial ans e s ha
ill i e ou an idea o ha a ical case discussion i h e like

uestion

ha ac o s should he ea conside hen e alua in he he ld arma should ac ui e Bio u u e

ake i e o o ani e ou hou h s e o e ans e in his ells he in e ie e ha ou hink a ou he o le in a

lo ical a

e elo o e all a oach e o e di in in o de ails

A good answer would include the Bio uture s marketing or sales ca abilit ga s
following ca abilities s eciall ho in biologicals sales and
alue of Bio uture s drug i eline o o ional essa es ill e a ke in e c
u e o d u s cu en l in deli e ed e ela ionshi s i h ke
de elo en uali o d u s o inion leade s ha can o o e alternatives to this
likelihood o success o en ial iolo icals e o inion leade s can ac uisition l e na i e co anies
e enues and o s co e o he acade ic a ena like ld arma could ac ui e he
o inen edical school o esso s s a e ies o en e in iolo ical
Biofuture s ca abilities future o o he u lic a ena like heads se en e en e a ne shi s
drug i eline Scien i c alen o e ula o odies o o inen a he han ac uisi ion u suin o he
n ellec ual o e e a en s ele ou nalis s s a e ies han en e in he iolo ical
o ie a ocesses o kno ho se en
o iolo icals esea ch Buildin s Ac uisition rice
e ui en and o he i e s ha allo
Bio u u e s oo e ae A ver good answer might also
include multi le additional ke
factors should consider
or e am le
Bio uture s e isting artnershi s or
other relationshi s with harmacos
 London Business School Case Book

c inse Com an

ldPharma

uestion

he ea an s o e lo e Bio u u e s cu en d u i eline he ea decides o ocus s on e alua in he alue o

Bio u u e s d u i eline o h i s cu en o olio as ell as i s a ili o ene a e d u s on an on oin asis ha
issues should he ea conside hen e alua in he alue o Bio u u e s e is in d u i eline

nsu e o en ion di e en issues ins ead o i edia el di in e dee in o one issue hen ask ou in e ie e i
he she an s o o dee e on an o he

A good answer would include the Cos s o anu ac u e and sell e Side e ec s and o en ial le al
following a ke in dis i u ion e c e osu e e o en ial la sui s
urther cost of until each drug due o une ec ed side e ec s
is read to be sold ess a ou hese d u s e ha e
a ous doc o s called o his kind e ence o su s i u es a e
Potential value of selling each drug o d u is i onl sli h l i o in co e i o s o kin on su s i u es
a ke si e e si e o a ien on ha is on he a ke al ead al ead s i a ou s eed and
o ula ion icin does Bio u u e ha e enou h
esea che s o kin on he
a ke sha e e nu e o A ver good answer would also es ec i e d u s
co e i i e d u s in o on include the following
he a ke di e en side e ec s isk level S en h o unde l in a en s i e
con enien dosin schedule i e Likelihood clinical ials o a d u ho likel is i ha a co e i o
a ien s a e esc i ed o ake a ill o e e ec i e can success ull co Bio u u e s
d u a e ula in e als ha a e du
eas o e e e such as once a Likelihood d u ill in e ula o
da o e e hou s e c a o al

uestion

Belo is a desc i ion o e ec ed o a ili o success s a e in he ha a i eline

oe ilin is he ocess o su i in all o he clinical and sa e e idence o hase and ials and askin
o e ula o a o al o ac uall sell he d u

hibit ictitious e hibit

ected robabilit of success b stage of research and develo ment

e cen

Successful
Phase I Phase II Phase III
Candidate drugs iling marketing
trial trial trial
and sales

ail ail ail ail

 London Business School Case Book

c inse Com an

ldPharma

ld arma elie es ha he likelihood o success o Bio u u e s i a d u candida e can e i o ed in es in an

addi ional S illion in a la e hase ial he ho e is ha his in es en ould aise he success a e in hase
eanin ha o e candida e d u s success ull ake i o hase and e ond B ho uch ould he hase success
a e need o inc ease in o de o his in es en o eake en

he in e ie e ould ell ou o assu e ha i he d u is success ull a ke ed and sold i ould e o h S

illion i e he esen alue o all u u e o s o sellin he d u is S illion

sk o cla i ca ion o in o a ion i necessa

ake no es o he nu e s
ake i e o lan ou ho o a oach he calcula ion
esc i e ou a oach and alk he in e ie e h ou h ou calcula ion

A ver good answer would include o eake en i e o ake he hase o a ili ould ha e o
the following illion in es en o h inc ease o o
n es en ould need o inc ease hile alue o he candida e
o a ili o success in hase d u ha asses hase ould
o o inc ease o need o inc ease o illion his see s like a e i
e cen a e oin s he e a e ul i le illion illion his challen e as an inc ease
a s oa oach his calcula ion ne eans he o a ili o co ined e cen a e oin s eans ha he
e hod is sho n he e success in hase and ould cu en o a ili o needs
a candida e d u asses hase need o inc ease o dou le
hen i has a e cen a e oin s
chance o ein success ull
a ke ed and sold Since a So he cu en o a ili o
success ul candida e d u is o h hase and i e
illion a candida e d u ha ould ha e o inc ease
asses hase is o h e cen a e oin s i e o
illion illion n o de o co e u o

uestion

e he ea e lo es he o en ial se u i h Bio u u e a e he ac uisi ion l hou h Bio u u e s e is in d u i eline

is ela i el li i ed ld arma is hi hl in e es ed in i s a ili o se e as a iolo ical esea ch en ine ha hen
co ined i h ld arma e is in asse s ill oduce an candida e d u s o e he ne ea s ha a e ou
h o heses on he a o isks o in e a in he unc ions o Bio u u e and ld arma

A ver good answer would include Lan ua e a ie s se e el hinde e scien i c alen lea in
the following co unica ion and sha in o Bio u u e a e he ac uisi ion
Scien is s do no ha e o e la in in o a ion ei he ecause ac uisi ion akes
disease he a eu ic a ea in e es s he inde enden l eal h o
o e e ise and a e una le o oo ana e en and sense o ecause he don an o e a
a e iall colla o a e co uni as a esul o a o he ne i ld arma
o e a ions ha i h co e i h a ha aco
n e a ion in o he ocess i e di e ence o hou s
d i en ld arma cul u e kills he
en e eneu ial cul u e a Bio u u e
ha has een ke o i s success
 London Business School Case Book

c inse Com an

ldPharma

uestion

os ac uisi ion ld arma elie es ha i ill e necessa o consolida e all iolo icals in o one cen e he e a e
o lo ical choices ld arma e is in head ua e s in e an and Bio u u e s cu en head ua e s in San ancisco
ld arma does no ha e an cu en iolo icals acili ies o o e a ions in e an so ne acili ies ould ha e o e uil
o ould ou hink a ou his decision

A ver good answer would include e all easie o in e a e asie o e ain he en e eneu ial
the following Bio u u e s ca a ili ies in o s i i and cul u e o Bio u u e
easons for consolidating at ld arma
cor orate H in o need o e uild e
German easons for consolidating in anu ac u in lan s esea ch
Be e coo dina ion i h non Bio uture s San rancisco location acili ies
iolo icals a ld arma Less likel o see i h o alen
an o scien is s ould likel
Be e coo dina ion i h o he lea e a he han eloca e o
usiness uni s o ld arma e e an
a ke in anu ac u in
asie o ec ui and nd o
asie o in e i scien is s in esea ch alen in San ancisco
iolo icals and adi ional s e an
uni s and ans e an uni ue
ca a ili ies kno led e

uestion

hile esea chin he in e a ion a ie s he ea lea ns ha one o ld arma s o co e i o s u a has al ead

a ne ed i h Bio u u e on hei lead d u candida e essen iall a eein o s li all de elo en cos s and u u e o s
ld arma is conside in u in ou u a s sha e o he Bio u u e lead d u candida e s a s s e in
alua ion he ha e asked he c inse ea o es i a e he o en ial eak sales o his d u candida e his is ano he
a o ei o en ial u u e o s o a d u he d u candida e is in ended o ea non od kin s l ho a e cases
a e dia nosed each ea in ou o e e S en and ou o e e S o en i en his and an
o he in o a ion ou i h need ha a e he es i a ed S eak sales o his co ound

he ollo in in o a ion ill e i en o ou he in e ie e u on e ues

S o ula ion is illion hal en hal o en
ull cou se o he a akes da s and ld arma elie es he d u can e sold a a ice o e da
s i a ed a ke sha e i e o eli i le a ien s ho a e ea ed i h his d u is

A ver good answer would include ach cou se o he a ill ield

the following in e enue da s a
ec ed eak sales o his d u e da he e o e o al S
candida e a e S illion a ke o en ial is illion
s i a ed a ke ca u e is
ssu in a S o ula ion o leadin o an es i a ed S eak
illion en and illion o en sales o illion
he e ould e es i a ed
dia noses a on en and
dia noses a on o en
o ne cases o non
od kin s l ho a e ea
 London Business School Case Book

c inse Com an

ldPharma

uestion

n he hi d da o he en a e en ou un in o he ice esiden o Business e elo en o ld arma in he ca e e ia

e asks ha he ea s cu en e s ec i e is on he Bio u u e ac uisi ion and ha ne s e s ou a e lannin o ake
o ould ou es ond

There is no right or wrong answer on in hase ials is no likel o e a ld arma he e a e si ni can isks
whether to bu or not bu and there o a le in es en secondl one o o his as ell i en he o o lds
are various wa s on how to build an ou co e i o s u a cu en l na u e o hei o ani a ional cul u es
argumentation ne ossible ver has a coo e a ion i h Bio u u e o
good answer would be i s lead d u candida e his needs o s ne s e s e he e o e an o
n ac uisi ion o Bio u u e can e aken in o accoun hen in o e e unde s and he easi ili o
in o a o sou ces o alue o ac ui e Bio u u e e a e s ill lookin id in he cul u al a and e e
ld arma he alue o i s e is in in o o he o en ial s ne ies u i unde s and os and cons o di e en
co ounds and he o en ial alue o a ea s unlikel ha ld arma can consolida ion o ions es i a e he
in e a in i s esea ch ca a ili ies in o us i he cos o an ac uisi ion u el cos o his esea ch in e a ion e
ld arma ased on Bio u u e s e is in i eline a e e unde s andin o he alue o
Bio u u e s u u e o en ial o de elo
n e s o Bio u u e s e is in i eline he ea e sou ce o u side is likel o du s
he e a e a cou le o challen es s l e he lon e ene s o in e a in
he o osed idea o in es in hea il Bio u u e s esea ch ca a ili ies i h
 London Business School Case Book

c inse Com an

efresh ow Soda P
A
CT
CH

orth America

Case Background
his docu en is in ended o hel elie e ha he ollo in case is a ood he e a le elo is se u o each
e a e ou o he case o ion o e a le o he e o case an o ou ho o a oach a ical case
a c inse Co an in e ie ou in e ie e s use o e e in os
hile in e ie e s a c inse ha e in e ie s he in e ie e ill onl ask a
a ood deal o e i ili in c ea in selec ion o he ues ions in his case
he cases he use in an in e ie e

Conte t
he in e ie e ill icall s a he case i in a ie o e ie o he con e endin i h a ues ion ha is he
o le de ni ion he end o he desc i ion ou ill ha e an o o uni o ask an ues ions ou i h ha e o
cla i he in o a ion ha has een o ided o ou

u clien is fr o Soda fr o is e alua in he

fr o is a o e ea e launch o a ne oduc a a o ed i e do n i o an
oduce in he S and has non s a klin o led a e called in o a ion
a oached c inse o hel in at ra he co an e ec s his
desi nin a oduc launch s a e ne e e a e o ca i ali e on he eel ee o ask in e ie e o
ecen end o a ds heal h conscious e lana ion o an oin ha is
s an in e a ed e e a e co an al e na i es in he acka ed oods no clea o ou
fr o leads i s o n and a ke
desi n a ke in and sales e o s
n addi ion he co an o ns he fr o s ice esiden o
en i e e e a e su l chain includin a ke in has asked c inse o hel
oduc ion o concen a es o lin anal e he a o ac o s su oundin
and acka in and dis i u ion he launch o at ra and i s o n
o e ail ou le s fr o has in e nal ca a ili ies o su o he
a conside a le nu e o ands e o
ac oss ca ona ed and non
ca ona ed d inks la e o lin hich ac o s should fr o
lan s h ou hou he coun and conside and ac on e o e launchin
dis i u ion a ee en s i h os at ra in o he S e e a e
a o e aile s a ke
 London Business School Case Book

c inse Com an

efresh ow Soda

uestions

n c inse Co an case in e ie s he in e ie e ill uide ou h ou h he case i h a se ies o ues ions ha

ill allo ou o dis la a ull an e o o le sol in skills Belo is a se ies o ues ions and o en ial ans e s ha
ill i e ou an idea o ha a ical case discussion i h e like

uestion

ha ke ac o s should fr o conside in decidin he he o no o launch at ra

ake i e o o ani e ou hou h s e o e ans e in his ells he in e ie e ha ou hink a ou he o le in

a lo ical a

e elo o e all a oach e o e di in in o de ails

A good answer would include the Com etitors hich oduc s is acka in o dis i u ion s i
following at ra oin o co e e i h ossi le o acco oda e at ra
Consumers ho d inks a o ed hich co anies a e ke la e s and in he cu en oduc ion and
ae e he e s eci c a ke ho ill he eac dis i u ion acili ies ha i ac
se en s o add ess does eo a h ha e on he lan
A ver good answer might also selec ion
Cost Price s he a o ed o led include multi le additional ke
a e a ke o e o a le han factors should Channels ha is he ideal
hose a ke s o fr o s consider or e am le dis i u ion channel o his oduc
cu en oduc s s i ossi le o Ca abilities and Ca acit e cu en e ail ou le s illin o add
o a l sell ice se he a ke e he e ui ed a ke in and at ra o hei oduc ca alo ue
in e nal oduc ion cos s at ra sales ca a ili ies a aila le i hin
i en ed cos s in ol ed ha ould fr o oes he oduc
e he eak e en oin o at ra e ui e s eciali ed oduc ion
 London Business School Case Book

c inse Com an

efresh ow Soda

uestion

e e ie in he ke ac o s fr o should conside in decidin he he o launch at ra ou ea an s o

unde s and he e e a e a ke and consu e e e ences o au e o en ial success o at ra

he o led a ke s li s in o non s a klin s a klin and i o s la o ed a e alls i hin non s a klin ou ea

has a he ed he ollo in in o a ion on he S o led a e a ke he in o a ion sho s an es i a e o he sha e o
a o ed a e as ell as he cu en sha e o he o ain oduc s Cool and la o

hibit
ictitious e hibit
S Bottled water market
illions o allons

on s arkling lavoured b roduct

Cool

on la ou ed la ou ed la o r

he

Based on he a e ice and u on n o de o launch at ra he o e a ions es i a es

ed cos s ha sha e o he a o ed fr o ould need o incu ha each o le ould cos
non s a klin o led a e ould illion as o al ed cos s o oduce and deli e in he ne l
at ra need o ca u e in o de o includin a ke in e enses as es a lished ocess
eak e en e e is so e addi ional ell as inc eased cos s ac oss
in o a ion o ou o conside as ou he oduc ion and dis i u ion
o ou es onse ne o k
at ra ould launch in a o
esen a ion o a allon i h a
ice o o e aile s

sk o cla i ca ion o in o a ion i necessa

ake no es o he nu es

ake i e o lan ou ho oa oach he calcula ion

esc i e ou a oach and alk he in e ie e h ou h ou calcula ion he o e ou alk he easie i ill e o

ou in e ie e o hel ou
 London Business School Case Book

c inse Com an

efresh ow Soda

A ver good answer would include at ra ould need o sell at ra ould need o ca u e a
the following illion uni s in o de o eak a ke sha e
at ra ould need o ca u e a e en on s a klin a o ed o led
a ke sha e o a o ed non a ia le o e uni a e a ke
s a klin o led a e in o de o illion allons illion
eak e en he e o e at ra ould allons
need o e he u e oduc in B eak e en uni s o al ed
he a ke cos s a ia le o e uni at ra sales in illions o
illion e uni allons illion uni s
illion uni s uni s e allon illion
allons

a ke sha e illion
allons illion allons

uestion

fr o e ecu i es elie e ha he co an s osi ion as he o e e a e co an in he coun i es he

s a e ic s en hs o a d achie in he desi ed a ke sha e o e e he ask he ea o cha ac e i e ealis icall ha
he ould need o achie e ha a e

ha ould fr o need o ensu e ealis icall o ain he e ui ed a ke sha e o at ra o non s a klin

a o ed o led a e

A ver good answer would include Strong Branding arketing C ea e erational Ca abilities nsu e
the following a success ul in oduc o a ke in access o e e ed dis i u ion
atch with Consumer Preferences ca ai n includin ad e isin channels nsu e sales o ce
nsu e oduc i a e a i u es icin and undlin o o ions ca a il ies o sell he ne oduc
and uali ul ll he needs o all Le e a e o oduce s a us and nsu e oduc ion a u ha allo s
consu e s o niche se en eachin li i ed a ke a en a ion in o de es onse o inc eased de and
desi ed a ke sha e nsu e a e o osi ion at ra and i hin o
ice is consis en i h o he oduc s in he a ke se en n ici a e
in he a ke and he consu e s es onse o co e i o s e
e ec a ions ad e isin icin dis i u ion
a ee en s nsu e oduc
osi ionin does no canni ali e on
o he o e o a le fr o
oduc s o e n a ke in he
dec eased de and o an e is in
oduc ha occu s hen i s endo
eleases a ne o si ila oduc
is called canni ali a ion is no
i o an o ou o use his usiness
e iniolo
 London Business School Case Book

c inse Com an

efresh ow Soda

uestion

i hin he ke d i e s o a ke sha e fr o an s o kno hich o ackle s and ha he s a e should e

he e o e c inse hel ed fr o desi n and un a s ud o unde s and andin and dis i u ion he ollo in
in o a ion sho s esul s o he s ud ased on a sa le o a e consu e s ha can ou conclude o he s ud in
e a ds o he e e ed a ke in i a e and s a e o at ra

hibit ictitious e hibit

Consumer Preferences
n e cen

I identif roduct with I would bu beverage in

Cool la o r he

eal h non alcholic he

e ea e

Ca es au an

S o s d ink
Con enience s o e

Leisu e e e a e Su e a ke

la ou ed ae he e e a es
e o he
fr o
oduc s

A ver good answer would include istribution differs from arketing message to em hasi e
the following insights current outlets and needs new identit and availabilit a ke in
Branding should em hasi e s orts agreements research a o shi s ca ai n should e uil a ound he
drink identit eal h iden i is co a ed o cu en dis i u ion cu en l unadd essed a ke need
do ina ed Cool oduc Leisu e odel e ui ed in Su e a ke s o s o s d ink in o de o connec
la o and S o s a en ed he and Con enience s o es i h cus o e s in ha se en
in o he oduc s Clea niche i hin ee en s i h a o e ail la e s i en e ui ed chan es in dis i u ion
S o s iden i ih o ands a acco oda e o oduc channels at ra essa in should
cu en l occu in onl o sha e in oduc ion i h fr o cla i ne dis i u ion s a e
o ind S o s andin should also ana in i ac oss channels
de e ine hinkin a ound he sales he channels need u he
channels e sales du in s o s esea ch since he a e a a o
e en s o a s o s acili ies co onen o he la o ed a e
se en
 London Business School Case Book

c inse Com an

efresh ow Soda

uestion

he ea no e lo es fr o s in e nal o e a ional ca aci o ul ll he o ec ed at ra de and fr o

has decided o oduce at ra o an e is in dedica ed oduc ion line in a sin le acili n o de o e on he sa e
side in case o inc eased de and he lan o an annual ca aci o illion o les uni s o at ra he oduc ion
line he ha e in ind cu en l o e a es o hou s e da da s a eek and eeks e ea he s eed o he
cu en o lin ocess is uni s e inu e

s he cu en oduc ion ca aci su cien o ul ll he desi ed annual oduc ion lan o illion o les o at ra

A ver good answer would include ail oduc ion o les e nnual oduc ion illion
the following inu e inu es e hou o les e eek eeks e
fr o ould need o inc ease hou s e da illion o les ea illion o les
i s ca aci ecause i ould cu en l
onl allo o oduce illion eekl oduc ion illion
o les o at ra o les e da da s e eek
illion o les

uestion

i en he need o a s eciali ed oduc ion ocess o at ra he co an has decided o add a ne oduc ion line o
onl one o hei acili ies ha ac o s should he conside in selec in he ade ua e lan

A good answer would include A ver good answer would include

economic factors like both economic and non economic
conomic factors factors and rovide e am les of
e ui ed in es en in a e lan how different conditions could shift
consis en i h at ra ud e decision
on economic factors
a ch o selec ed lan cos aila ili o addi ional esou ces
s uc u e i h ed and a ia le o e a le
cos a e s o oduc S ace
ae
oduc assi n en a ches a e ial su lies e o le
ne o k o h a e s i e ca s la els
e ec ed o h due o at ra Local la o ool
is consis en i h lanned o h ana e en and id h
o he lan Skills and ainin needs due o
s eciali ed ocess
S eed o ins alla ion i en cu en Co i en s o and su o
lan co i en s o selec ed lan co uni

de ua e loca ion o o e all

lo is ics i onl one lan
concen a es on oduc ion
na ional shi en s should e
o i i ed
 London Business School Case Book

c inse Com an

efresh ow Soda

uestion

he fr o C has seen he ea s anal sis and con s ha he decision o launch at ra has een ade
he oduc ill e a ke ed as a s o s d ink oduced in he id es S and dis i u ed h ou h su e a ke s
con enience s o es and s o ou le s e asks he ea ha he co an should s a doin o o o

nsu e o en ion di e en insi h s ins ead o i edia el di in e dee in o one insi h hen ask ou in e ie e
i he she an s o o dee e on an o he

A ver good res onse would include arketing to start designing launch Sales to start designing roduct
the following strateg a roach and training for
inance to allocate re uired esi n oduc iden i essa e Associates
resources for launch acka in e c Colla o a e i h a ke in in
Co unica e launch decision and de nin essa e o e ail ou le s
i eline o inance de a en C ea e ad e isin and o o ional and consu e s
ca ai n
nal e u on in es en and esi n dis i u ion s a e and
on oin o a ili a e s e ne an channel s eci c alloca e esou ces o ne oduc
conside a ions e dis la s
Secu e esou ces e ui ed o al e na i e ca ai ns esi n and deli e oduc ainin
ini ial in es en and alloca e o o sales
each de a en e a ke in e a e oduc co unica ions
Sales oduc ion is i u ion o in es o s cus o e s and Co unica e ne oduc
consu e s cha ac e is ics and a es o
clien s e su e a ke s
erations to begin roduct con enience s o es es au an s
testing roduction line design and s o clu s
logistics
C ea e and es oduc

Co unica e and ne o ia e
oduc cha ac e is ics and ices
i h su lie s

ene o ia e su lie con ac s

o a e ials and a e su l i
necessa

nc ease ca aci o he e is in
oduc ion line a e uildin a
ne one

i e ne eo le i needed
 London Business School Case Book

onitor eloitte
ootloose P IT

uro e

ootloose Introduction
u a e is a e an oo ea o e he hese ou ands e esen on he o u oses Casual oo s is
co an i h annual en s oo ea a o i a el o he illion he as es o in su ca e o and
sales o a o i a el illion e an en s oo a ke he oo s is ea ed o e o a ds hi e colla
uo ca e o includes ou ain su o ke s and s uden s ho u chase
ca e o ies hese oo s o eek end casual
he ha e al a s elied on he oo ea and li h o k u oses
a ke o he a o i o hei olu e o k oo s casual oo s eld and
and in his a ke he co e e i h hun in oo s and in e oo s o k he ou ke co e i o s in he a ke
h ee o he a o co e i o s oo s is he la es su ca e o and a e Bad e u a e S eele and
is ea ed o lue colla o ke s ho ekke
u chase hese oo s i a il o

Com etitor Pro les

Bad e and S eele a e o h ell
es a lished as o k oo co anies arket Share of ork and Casual Boots b Com an
ha in a lon his o and s on and
eco ni ion and c edi ili a on lue
colla o ke s he o he e e e is
ekke a s on la e in he casual Bad e
oo a ke u a e eak la e
in o k oo s u a e ho e e is a
c oss e een he o he co e i o s u a le
ha in a si ni can sha e in o h o k
oo s and casual oo s
S eele
is o icall u a e had an e en
s on e osi ion in he o k oo
sec o o e e since hen
ekke
he co an e an sellin casual
shoes and ocusin on he o h
o o uni in casual oo s sales
he
o he u a e o k oo line ha e
s eadil declined lso a ound
he sa e i e u a e shi ed i s
e hasis Bad e eca e a uch
a ke Sha e
o e asse i e co e i o in he o k
oo a ke inc easin i s a ke o k oo s Casual oo s
sha e o in us h ee ea s

Blue colla o ke s a e ea ne s ho ene all o k in anual o indus ial la ou and o en e ui e s ecial o k clo hes o o ec i e clo hin hich a e e laced
a o i a el e e on hs
hi e colla o ke s sala ied e lo ees ho e o kno led e o k such as hose in o essional ana e ial o ad inis a i e osi ions
 London Business School Case Book

onitor eloitte

ootloose

Consultants ole ata Collected

n he all o Bad e launched a n anua o u a e hi ed a ele hone su e ha as conduc ed
ne line o a essi el iced o k leadin consul in o conduc a on ando l dialed
oo s he s on success o his line esea ch o hel ana e en in i s consu e s ac oss he coun s
has caused u a e s ana e en decision akin o ake an in o ed i a e ions n addi ion
o e e alua e hei osi ion in eco enda ion he consul an s he consul an s co le ed so e
o k oo s i h li i ed addi ional ealised he needed o collec in e nal cos and icin anal sis o
esou ces ana e en us no in o a ion ha ould ena le he o u a e s o k and casual oo lines
decide i he should ocus hei e o s si e he a ke and e e unde s and he a ke icin anal sis sho ed
on co e in i h Bad e in he o k u a e s co e i i e osi ion u a e co e in a he e iu
oo sec o o ocus hei esou ces end o he a ke o o h i s casual
on u he s en henin hei osi ion o e in i h he consul an s and o k oo lines
i h casual oo s de elo ed a inu e uan i a i e

hibit ne Pro ensit to bu boots b o ulation segment ale Po ulation

Bou h o k oo s
in as ea

Bou h casual oo s
in as ea

Blue Colla hi e Colla S uden

o ula ion
ea e ice aid o Boo s
 London Business School Case Book

onitor eloitte

ootloose

hibit Two Channel Preference b Brand

he
he he
he

hle ic S o e a el S o e
e Soe
S o in oods
e Soe
Channel Sha e

iscoun u le
Shoe S o e iscoun u le

hle ic S o e Sa e ok

Shoe S o e

Sa e ok
Shoe S o e Shoe S o e

u a le Bad e S eele ekke

hibit Three Bu er Purchase Criteria b Brand

ura e Badger Steeler Trekker

uali
S lin Co o Co o
u a ili

uali uali
u a ili Co o u a ili S lin

as
Co o S lin ice
e ience

B and S lin ea u es B and

as
ea u es B and ice e ience

Sha e Sha e Sha e Sha e

 London Business School Case Book

onitor eloitte

ootloose

hibit our etail rice of selected boots s lit b rice com onent

euros

Co an a in
euros

euros e aile a in Co an a in

Co an a in ene al d in e aile a in
ene al d in
ice

e aile a in esi n
esi n
ene al d in
e ail

Sales k Sales k
esi n
La ou
La ou
Sales k

La ou a e ials
a e ials
a e ials

u a le Casual u a le ok Bad e

Case Stud uestions

o k h ou h hese ues ions on ou o n usin he e and e hi i s in he ecedin a es n ans e ke is

o ided in he a es ha ollo

uestion

o i is he o k oo a ke e essed in eu os oes ua e e o e o i s e enue o o k oo s o casual

oo s

uestion

lain h Bad e is ou e o in u a e in he o k oo a ke

uestion

ha chan es ould ou eco end o ua e s o k oo s a e h ould ou eco end he in oduce a su

anded oo line
 London Business School Case Book

onitor eloitte

ootloose

Answer How big is the work boot market e ressed in euros oes ura e get more of its
revenue from work boots or casual boots

To nd the si e of the market we can use the following e uation

e a e Boo s ice o ale o ula ion ha ou h o k oo s in as ea

o al o ula ion o he se en nu e o ai s ou h in a ea

hibit ne i es us he o ula ions o each se en and he e cen a es ha ou h oo s e he e o e need o

nd he n m r of oot old and he a ra ri of a air o his ues ion he candida e ill need o ake so e
assu ions

Average number of boots urchased er user Average rice er air of boots

o o k oo s e kno ha lue colla o ke s o k oo s cos o e co a e Blue Colla s S uden so
u chase an average of airs er ear o he a e a e ice should e hi he han o all
n oduc ion oo no e is easona le casual should e lo e han s uden
is easona le
hi e colla o ke s and s uden s ho u ok
oo s o a l use less i o ousl and less e uen l
he e o e ro a l onl air r ar

o casual oo s e can ake a easona le

assu ion kno in ha casual oo s a e u chased
i a il o eekends and li h ea o e so he
a e a e nu e o ai s should e no o e han o k
oo s o hi i ie air r ar

The total market value will then be the sum for each segment of the following e uation

e a e Boo s ice o ale o ula ion ha ou h o k oo s in as ea

o al o ula ion o he se en nu e o ai s ou h in a ea

ill ill ill ill or Bill

he ollo in a le sho s ano he a o see i

Pairs
Bu ing ork work boots
Po ulation Boots bought ear Price Per Pair Segment Si e
Blue Colla illion Billion
hi e Colla illion illion
S uden illion illion
Total Billion
 London Business School Case Book

onitor eloitte

ootloose

ollowing the same rocedure the casual boot market is then

e a e Boo s ice o ale o ula ion ha ou h o k oo s in as ea

o al o ula ion o he se en nu e o ai s ou h in a ea

ill ill ill ill or Bill

Pairs
Bu ing ork work boots
Po ulation Boots bought ear Price Per Pair Segment Si e
Blue Colla illion illion
hi e Colla illion illion
S uden illion illion
Total Billion

Summar

e kno o hi i ha u a e has a sha e o he o k oo a ke and o he casual oo a ke

he e o e
ura e s revenue from the work boot market Bill ill
ura e s revenue from the casual boot market Bill il

So ua e es os o i s e enue o o k oo s e en hou h he e enues a e al os e enl s li

ur Answer
he o k oo a ke is Billion he casual oo a ke is illion u a e ene a es illion o
o k and illion o casual e endin on assu ions casual a e sli h l la e u he o should e
ela i el close
 London Business School Case Book

onitor eloitte

ootloose

Answer lain wh Badger is out erforming ura e in the work boot market

a s to a roach the uestion

cco din o he da a e ha e and ha e kno as indus d na ics he anal sis can e s li in ain a eas ha ould
de and u he s ud

is i u ion

Bu e u chase C i e ia B and B Cs

icin

Cos anal sis

en i ou ha e an ood ideas o ans e his ues ion ou on e i essi e i hou S C ou don

need a o al a e o k us e e hodical and o anised in ou a oach and su a ise a he end

istribution Bu er Purchase Criteria b Pricing

Brand BPCs
u a e is no sold he e o k oo s e kno ha Bad e is launchin an
a e ein u chased hi i sho s hi i sho s us ha Bad e s o a essi el iced o k oo line
ha Bad e s and S eele s oo s o associa ed c i e ia a e uali u a e can al e i s icin s a e
a e o en u chased in sa e ok u a ili and Co o e lo e i s o n oo ice
channels he eas u a e does no he sa e holds ue o S eele hus o e e lookin a hi i
ha e a si ni can esence in he hese see o e c i ical c i e ia o a on he s on e o k oo
o k oo a ke a ke co e i o s e see ha
o e e u a e s o c i e ia onl S eele sho s ice as a o
he e o e u a e ill need o a e S lin and uali B C and hen i is he lo es one
oaden dis i u ion i i is o u a ili i h Co o o en iall ecause he a e he
inc ease i s sha e i needs o is a dis an d a a o is lo e cos o ion is his a ke
e shel s ace in he ele an co e i o s u es
channels
i en ha ice does no a ea
u a e is no ee in he ke o e an i o an c i e ia o o k
needs o lue colla o ke s oo consu e s u a e ill likel
and ill need o s en hen i s no ealise ea ene s o his
co o e ce ion s ae and ill also lo e i s
o s in so doin

ddi ionall e should no e ha

Bad e has uil u a lo al cus o e
ase as e e ience as a c i e ia e kno o he case ha
e esen s and is d on i s lis o u a e has e iu ice
associa ed c i e ia osi ionin hence lo e in i s
ice a lead o e ce ion o
lo e in uali
 London Business School Case Book

onitor eloitte

ootloose

Cost Anal sis

Co a in Bad e o u a e ok Sales a ke in s end is lo e

oo s o hi i he e is one ke o Bad e o en iall d i en Bad e has lo e a ins o h
a ea he e Bad e o o iona el lo e a ke in e ui e en s in a solu e and ela i e i en
and a solu el s ends o e han sa e o k channel as ell as al ead hi he a ke ice
ua e a e ials his su o s es a lished and na e a on u a e has li i ed e i ili o
hei e ce ion o uali du a ili lue colla o ke s lso Bad e aise i s oo ices u a e
and co o a on hei consu e s has uil a lo al cus o e ase a lo e i s a in so e ha
lso he s end o e on la ou and i is less cos l o ain ain and shi e hasis o la ou and
e aile a in is lo e o Bad e e is in cus o e s han a ac a e ials
due o si ni can esence in ne ones
sa e o k channel

Summar
u a e is no sold he e o k oo s a e ein u chased

u a e is no ee in he ke needs o lue colla o ke s as i is eake han co e i o s on he c i ical Co o

di ension

Bad e ices i s oo s o e co e i i el hich is likel o e a icula l a ealin o he la e o k oo a ke his

has hel ed de elo a la e and lo al consu e ase

Bad e has lo e e aile a ins o h a solu e and ela i e and s ends less on Sales a ke in

Answer hat changes would ou recommend to ura e s work boot strateg h ould ou
recommend the introduce a sub branded boot line

There are two reasonable answers to this uestion The com an can either

ocus on increasing its work boots activities or

m hasi e casual boots

ach o ion has i s o n us i ca ions and i lica ions

he i o an hin i h a su ec i e ues ion is no what ou ans e o he ues ion u how ou ans e he ues ion
ick a oin o ie and su o i i h c i ical easonin
 London Business School Case Book

onitor eloitte

ootloose

Increased ork Boot arket ocus

usti cation Im lications

e esen s a o i a el o u a e s usiness n e sa e o k channel e a e aced i h

o ues ion akin i e di cul o o a l essu e o Bad e e e in in uence on e aile s in
i no e his a ke his channel

hile u a e does ha e ea e a ke sha e in he Build co o and uali du a ili e ce ion

casual oo a ke e kno o in o a ion i en in a on lue colla o ke s
he case ha he casual oo a ke is s alle in si e
han he o k oo a ke hich a indica e less nc ease o o ion o cos s alloca ed o a e ials and
o o uni o sha e o h also e de i e lo e la ou o en iall educin co an a in
a ins s o casual oo s o hi i
he e a e uni ue niche osi ionin s o ua e
i en ha Bad e is in oducin a ne o k line he su es ions should e ell hou h ou
a see ne o h o en ial in he a ke hich
ua e a also an o ca i alise on n oduce su and o inc ease o o ion o and
i h a ocus on lue colla o ke s a include on
Buildin a s on e i a e a on lue colla o ke s si e o o ions ad e isin in indus u lica ions
a en ice he o o he u a e oo ea oduc s o ad e isin in a a ines on ele ision du in
o a es i h a hi he lue colla eade shi
ie e shi

m hasise Casual Boots

usti cation Im lications

S on hold o ua e i h no a ke sha e nlikel o e a s on co e i o eac ion since

u a e is al ead do inan la e
as es o in a ke
ua e ill no need o en e ne dis i u ion channels
e esen s a o i a el o u a e s usiness
o ues ion akin i e di cul o o a l Candida e should discuss a s a e o o k oo
i no e his a ke a ke ei he indin do n ain enance e c and
i lica ions o his
ocusin addi ional esou ces on o k oo a ke
ould isk o aliena in casual oo u e s hi e colla
o ke s and s uden s

S le is he o B C o u a e o hi i o
he s a is ics on Bad e and S eele e kno his is
likel no an i o an c i e ia o he o k oo a ke
B ocusin on he casual oo a ke u a e can
de o e addi ional esou ces o kee in u i h s les o
e e a eal o his a e
 London Business School Case Book

oland Berger Strateg Consultants

obile Phone Com an PC arket Share Gain P IT

uro e

Case Background
C is a lo al o ile hone handse anu ac u e ha has seen i s a ke sha e in u o e alue sli o e
ea s a o o oda C has discussed i s a i ion o eco e ele an in u o e a ain and has se i sel a s e ch
a e o e ack o i s e ious a ke sha e osi ion he u o ean handse a ke has adi ionall een do ina ed
o la e s u he las e ea s has i nessed ne en an s o he a as

uestion
hat volume does PC need Information to be rovided as a Suggested a roach
to regain its ast market share res onse to candidate uestions ssess he si e o a ke in e
osition and what ke challenges ssess onl he e ke a ke s o ke coun ies olu e and alue
does it face in getting there e an ance S ain and ssess ha C needs o
al o ula ions o achie e o each i s oal olu e
and alue
u o ean o ile a ke is iscuss he ke challen es ha
do ina ed ou ke o e a o s BC needs o o e co e
ha handse anu ac u e s sell o
oda one an e ele onica
o ile
andse s a e s li in o o ie s
s a hones and ea u e hones
S a hone ene a ion a e
ac oss ke a ke s should e
assu ed o e

Ste Si e of the market

Sa i h con in he e ec a ions e elo s ke assu ion o he e se candida e should
on s li in he a ke i e ke o ile ene a ion a e he candida e discuss he a e a hich handse s
a ke s e ance e an should co e u i h one a e ac oss in ci cula ion ill e e laced
S ain and al e ec a ions o u o e o calcula ion u oses u consu e s he should uickl
assu ions e een di e en should discuss ha his ould no e iden i ha he e lace en a e o
a ke s onl o ie s o handse he case in eali he candida e i h s a hones and ea u e hones a e
es s anda d handse s and ish o i e so e indica ion o ho di e en o his he candida e
s a hones he hink his i h di e a ke should de elo assu ions o he
o e lace en a es
Calcula ion candida e should a l
Interviewer o he o ula ion o ile ene a ion a e o he a ke Calcula ion candida e should use
ac oss he e ke a ke s o ula ions o i e he nu e o he e lace en assu ions o
e ec he candida e o do his on handse s in ci cula ion calcula e he nu e o s a hones
an a e a ed asis u i he and ea u e hones sold in one ea
s a doin i o each o he e his oin he candida e should a ke olu e and ollo his on i h
a ke s hen le he con inue in in he s a hone ene a ion an assu ion on he alue e uni
and calcula e ha nu e o s a hone and ea u e hone o
s a hones s ea u e hones in i e he a ke alue
ci cula ion
 London Business School Case Book

oland Berger Strateg Consultants

obile Phone Com an PC arket Share Gain

Ste PC ambitions
his is a ela i el si le calcula ion o assess ha Cs a ke a i ions ansla e o in e so alue and olu e o
o a ke sha e

he ain ask ill co e in he ne sec ion he e he candida e ill need o de ons a e he a ili o a ionalise ha his
a i ion eans o C

a le calcula ion

Ger r S It Total T
Po ulation aa o ided
atio of obile enetration ssu ions o candida e
obiles in circulation Calcula ion e ui ed
Smart hone aa o ided
Smart hone mn hones Calcula ion e ui ed
eature hones mn hones Calcula ion e ui ed
Smart hones re lacement rate rs ssu ions o candida e
eature hone re lacement rate rs ssu ions o candida e
Smart hones sold in a ear mn hones Calcula ion e ui ed
eature hones sold in a ear mn hones Calcula ion e ui ed
alue of average smart hone ssu ions o candida e
alue of average feature hone ssu ions o candida e
arket value bn
PC current market share value bn
Assume s lit of PC hones smart hone ssu ions o candida e
vs feature
in smart hones mn hones Calcula ion e ui ed
in feature hones mn hones Calcula ion e ui ed
PC market share ambition value bn
Assume s lit of PC hones smart hone ssu ions o candida e
vs feature
in smart hones mn hones Calcula ion e ui ed
in feature hones mn hones Calcula ion e ui ed

Ste e challenges
he candida e should e a le o iden i ha C is no le o Sa sun and e a le o s ai h a a de e ine ha
o each i s a i ions i ill ha e o o e co e si ni can challen es he candida e should ou hese in o so e o he
ollo in a eas
Consu e ends
oduc ca a ili ies
a ke in s end s and alue
Co e i o osi ionin
ela ionshi s i h ke o e a o s
La e and di e si ed a ke s
lo al ha d a e solu ion o localised a ke s

Creative view oints additional oints for discussion

Candida e should discuss he i e a e o such a i ions and conclude ha such a i ions in he sho o ediu
e could e oo challen in
C should ha e o e ealis ic oals in he sho o ediu e o ensu e o e a ionall i is ocused in he i h a eas
u can s ill kee a s e ch a e o he u u e
ee in e lo ees incen i ised o ealis ic a e s ill hel o ain ain s a o al
n such a as chan in en i on en he i h oduc i h he i h su o and a ke e ecu ion ill al a s do ell
uick assess en o ha he candida e hinks ha e een le s and Sa sun s eci e o hei ecen successes and
ha lea nin C could ake a a o he sel es
 London Business School Case Book

oland Berger Strateg Consultants

Private et Co P C leet enewal P IT

Case Background
i a e e cha e co an C has ai c a Lea e s hich a e used usiness en heads o s a e and hi h
ne o h indi iduals he e s a e no ea s old and hile ecen e o ance has een e ood he e a e so e
indi iduals in he co an ho hink i is i e o e lace he ee as i is lookin a li le i ed n ac cus o e s a e
e innin o sa ha he e e co e i o s lanes ecause he a e ne u his i h e us ecause he ca ins
a e o e u o da e he a ke is o in and C e ains he a ke s leadin es i e and he ai c a ul l he
cus o e s c i e ia he e is enou h de and o o ound

uestion
Should Privet et Co re lace its Information to be rovided as a Suggested a roach
eet res onse to candidate uestions s a lish ha he o ions a e
Aircraft tilisation a do no hin con inue i h he
i c a u ilisa ion is easu ed e is in ee
in Block ou s hou s is e lace he ee i h ne
conside ed e cellen ai c a
lde ai c a a e less o ula in c e u ish he e is in ee
ano he ea s u ilisa ion ill
hal e Sa i h askin he in e ie e
ilisa ion is d i en o e ues ions a ou he usiness
acili ies e ca in sea s in i h odel and a ious d na ics
o ies han ai c a a e den i he e enue and a ia le
cos co onen s o Cs
Pricing usiness and de ons a e clea
he ice o cha e a Lea e is hinkin a ou he d na ics
S e B ha a ec each

Costs alua e each o ion ood

ssu e all ed cos s ill e ain ans e conside s he e enue and
he sa e he can e i no ed in cos i lica ions o each o ion and
his case looks o uild a si le o do n
ld ai c a ill e inc easin l usiness case C ea i e candida es
e ensi e o o e a e uel ill e a le o iden i o e cos
e cienc ain enance assu e and e enue d na ics u he
S e B o an ea success ul ans e ill e a le o
old lane isin o S e kee one e e on he sco e and i e
B in ano he ea s a aila le in he case
Cos o a ne ai c a is S
Cos o e u ishin an ai c a is a conclusions a ou he es
S inc ne ca in in i h in es en case his is a ou
en e ain en S ec o e han he nu e s e an o
n ines e ui e ull o e haul a e see candida es ho can in e e
hou s cos o S e he anal sis in o ac iona le
en ine eco enda ions
Cos o ca i al a aila le o C can
e assu ed o e
 London Business School Case Book

oland Berger Strateg Consultants

Private et Co P C leet enewal

The Interview
Ste Identif Process
the evaluation structure
si le e alua ion odel can e used he ke di e en ia o he e is c i e ia includin cos sa e es i e
o ene a e h ee cases he ke eco nisin ha he e is a hi d a co o and he la es acili ies e
oin he e is o s c ea e a aseline e u ish en his is hin ed a in he ein a le o connec hones and
case in hich he cash o o a do ues ion and ill e ade a aila le la o s hile in i h
no hin a oach is calcula ed nce in he in o a ion a o e should he
his has een achie ed he sa e candida e ask he i h ues ions he
calcula ions can e e un o he o he ai c a a e is a ke d i e o cos s u
in es en scena ios he cus o e is d i en a an e o

Baseline o othing e ew leet efurbish leet

Calculate revenue o declinin Calculate revenue hich ill hold as Calculate revenue hich ill hold
u ilisa ion as cus o e s choose cus o e s con inue o use C s ne e as cus o e s con inue o use C s
co e i o s lanes o e C lanes ne e lanes ca in no ai c a is
i o an
Calculate variable costs d i en cos Calculate variable costs hich ill
e Block ou hich ill inc ease o e e ain s a le due o lo e ain enance Calculate variable costs d i en
he i e due o ai c a a e and uel cos s on ne e lanes cos e Block ou hich ill
inc ease o e i e due o ai c a a e
Calculate cash ow hich ill e he Calculate cash ow d i en in es en
sa e as oss a in due o a sence o in e lace en ee s Calculate cash ow d i en
ca i al in es en in es en in e u ishin ee s

Ste valuate each investment o tion

he second hin o e i h is he s uc u e o he calcula ion i sel he i o an hin he e is o concen a e on
ans e in he ues ion and a oid e in a ed in he de ail o oin o on an en s ee s uc u e ill hel and
indeed sho s he in e ie e ha ou unde s and he i ic u e

Price er BH S e B

hou s a d o in o
evenue tilisation BH hou s a a e s
o old a c

Cash low
S e B isin o
calcula ion
ariable Cost Cost er BH hou s e B a e
should assu e
s o old a c
discoun a e

Ca A C urchase S e ai c a

S e ai c a
A C refurbishment S e en ine a e
B
 London Business School Case Book

oland Berger Strateg Consultants

Private et Co P C leet enewal

e elo in a o do n e enue and n addi ion a ia le cos s ed cos s ha he co an is no lon e

cos odel o e ea s ill ena le can e i no ed in his co a ison a e o in a lack o in es en leads o
he candida e o uild a cash o isin as he ai c a s ends o e i e s a na ion and e en ual decline
and o he aseline case on he ound ein ed uel cos s
e enues ill decline o e i e as he inc ease B he en ines ill
ai c a in e io s look inc easin l old ha e co le ed he a i u he co a ison onl needs o e
co a ed o ne e ai c a o ned hou s and ill e ui e an o e haul co le ed o a sin le ai c a u
he co e i o s n ea s i e as cos in S illion o o en ines i is i o an ha he candida e
an as hal o all ookin s a e oin clea l s a es his assu ion
o co e i o s he esul an cash o ill e osi i e
u he candida e should eco nise

Baseline
Block ou s
ice e B S
evenue
a cos e B
Total
oss o
Ca
C
P discoun a e

o e ee in C needs o s end S illion on a ne lane in u no lon e needs o o e haul he en ines he

ne lane ill ena le ull u ilisa ion o lock hou s e ai c a and ill s o cos s o isin so as in he u u e a
leas o he i e ein

e ew leet
Block ou s
ice e B S
evenue
a cos e B
Total
oss o
Ca
C
P discoun a e

o e u ishin he lanes C incu s uch lo e ca i al e enses S e ai c a in and S e

ai c a in e e e he en ines ill s ill need o e haulin he cos s ill con inue o ise as he ai c a ain enance
ills ill s ill e hi he al hou h uel cos s a e i o ed due o he o e haul os i o an l C ill ain ain ull
u ilisa ion on he ai c a i hou needin o ie u S illion in ca i al

efurbish leet
Block ou s
ice e B S
evenue
a cos e B
Total e
oss o
Ca
C
P discoun a e

e lacin a sin le ai c a ill ene a e and ne a i e o o e S illion usin he a o e assu ions

Si l e u ishin he ai c a ill ene a e a osi i e o o e S illion i he nu e s o ided he e a e a lied
 London Business School Case Book

oland Berger Strateg Consultants

Private et Co P C leet enewal

Ste ake a recommendation

he candida e needs o in e e he u es o ake a clea eco enda ion Co a in o e ea s alues ould
dic a e ha C is es laced i i does no hin u candida es a e encou a ed o de ons a e an unde s andin o he
li i a ions o he calcula ion

A good answer would be

oin no hin i es he es o e ea s u is likel o lead o s a na ion o decline in he lon e as C ails o
ene a e o line o h
i a e e Co should in es o u u e o h
see s oo ea l o e lace a ee o onl ea s old Lea e s a e desi ned o las a lon e han ha as alon as hei
en ines a e ain ained
Business e cha e cus o e s a e lookin o es i e and his is o en cos e ic he e e ience needs o e lu u
C should e u ish ha e ains a ela i el oun ee and should s ea hei asse ase

Creative view oints additional oints for discussion

lon e e ie on is i o an ea s is no enou h o an asse i h such a lon li e i e
u he al e na i e ould e o lease ne e lanes
ica ana e en se ices ould i e chea access o ne e lanes
C should conside a ke si nallin o sho ha ea o anu ac u e is no i o an i s all a ou ca in lu u
sa e eco ds e c dis ac o he co e i ion
ollin e lace en s ould hel o educe i ac s
 London Business School Case Book

Solon anagement Consulting

ree to Air T etwork P IT

Case uestion
ee o ai ne o k is e e iencin s a na in e enues he o en a a o sha eholde is seekin o e i and is
e ec in ana e en o c ea e and deli e on a o h s a e o he ou ou a e su osed o su o ana e en
in ndin a s o o e enues h ou h di e si ca ion

Intro acts ell he candida e i asked e Insights do no sha e i h he candida e

ha a e he clien s cu en e enue s ea s he co e usiness ad e isin is s a na in
A o e han o e enues s e o ad e isin ddi ionall innin a ke sha e o o he ee o ai
oadcas e s is ha d o achie e
o is he ad e isin a ke de elo in
A n ene al i ollo s he econo u he sha e o in Clien s ain asse s a e o o ional o e and and
o e all ad s endin is s a na in declinin con en

hese asse s can e le e a ed h ou h la o a ie

oduc a ie and inno a i e s en h

Case at a glance o he in e ie e onl

Part A Part B Part C

nderstanding the roblem Structuring the solution uantif ing one of the ideas
he ad e isin a ke is deas o le e a e con en S uc u e de endin on he idea
s a na in deas o le e a e and ec a ions
d e isin ud e s a e ein deas o le e a e o o ional S uc u ed a oach d i en
shi ed o online each olu es and ices
i i i a ion has led o a ious ne Business sense ha
s a ions and inc easin clien s assu ions a e easona le
sha e o he ad e isin a ke is achie a le
e ha d o achie e
 London Business School Case Book

Solon anagement Consulting

ree to Air T etwork

hibit et advertising s ending b media t e

edia s lit of net advertising s ending bn

he
u doo
nline

he in

a a ines

e s a es

ea ea ea ea ea ea ea

am le for structuring the roblem

Shi in ad e isin Shi in edia

ud e s usa e

Com an alue BIT A ulti le

timise core em lar

business T diversi cation
not art of case Secure future growth through initiatives

Platform variet nline ideo

haus i e sou cin and e loi a ion la
everage o ideo i h s ac oss all la o s
brand nline
content Product variet Licensin
romotional S s e a ic and e ension in o S o s
ower o in B B and B C a ke s usic

and Innovative strength nline

ollo he a e ou h ou h a es
strengthen in es en s in o dis u i e edia
inde endence from asse s
T advertising
 London Business School Case Book

Solon anagement Consulting

ree to Air T etwork

Possible structure for calculating the moneti ation otential of online videos

ew sers e uestions for successful ad monetisation

o o n e eat sers
o o ion sea ch os l di ec isi s
each and and success ul ans o ed in o
en ines online each
Sui a le con en and se ice o e in s a aila le o
ene a e lo al e uenc and s ickiness
i ised ad us en o a oun and alue o
ni ue se isi s e ad e isin o a s
i ised ield ana e en es a lished
i h sales s a e
ac i e en i on en s and a e ou s o
o al isi s e is ad e ise s

ideo ie s d n ensi

aila le in en o Sell ou a io iscoun s oss C

Sold n en o e C

e ad e isin
oss e
e u es o e si e e o ance easu e en e enues
a
e o ed calcula ed da a s
 London Business School Case Book

The Interview Process

Solon anagement Consulting

ural Broadband I ST T

orth America

Case uestion o he in e ie e
sk he candida e o ead he a ached a icle o he sk he ha he s o is a ou and he he he o osed
usiness en u e is a ood one sk he candida e o si e he a ke o sa elli e oad and sk he candida e ho o
s uc u e he oduc o i o e i s a eal e ond he a e se en

Intro acts ell he candida e i asked e Insights do no ell he candida e

ll o he e ui ed ac s a e in he a icle he co an in es ed in launchin a sa elli e

u he assu ions o e o ided he in e ie e heo e icall he es a o assess he he his is a

ood usiness is o e o an anal sis Bu ha is
oo co lica ed o en al a hs

ain d i e o o he han CC ill e add essa le

a ke and a ke sha e

dd essa le a ke is u al oad and hich doesn

ha e access o SL as oduc is o e e ensi e
han SL

a e ossi le o ada oduc o co e e i h SL

usin di ec a ke in o ad us ices do n in SL
ca a le a eas

Case at a glance o he in e ie e onl

Is this a good business arket si ing Product marketing

den i he u al oad and a ke as Sa ih S o ula ion oduc is ai ed a e s eci c

he a e se en ok o iden i o he se en hich is o a l oo s all
se en s e i ans o as u side Con e o households o sus ain i

Candida e should su es calcula in ake es i a e a ou u an u al s li sk candida e ha could e chan ed

an and e lain ho his sho s o iden a eal o oduc e insi h
ha his is a ood usiness ake u he assu ion a ou ho he e is ha he co an should look
uch o his is al ead se ed SL o a s o a ke he oduc o e
Candida e should no ice ha he idel i hou des o in he ice
oduc canno co e e a ains o he den i ha so e households ill e iu i en o s in i s a e a ke s
echnolo ies ecause o ice ne e e add essa le

e ainde add essa le a ke

 London Business School Case Book

Solon anagement Consulting

ural Broadband

iaSat launch targets rural S web demand T com

B a id elles in e ok

ne l launched sa elli e ill hile os sa elli es a e i a il used in ensi e se ices such as e i and
soon s a ans i in oad and o one a oadcas in iaSa ulu has inc eased ild Blue hasn
in e ne o u al S consu e s he ill e a le o handle he o a chan ed i s se ice o si ea s he
la es e o eleco unica ions ans ission o da a a i a es said ha isn conside ed a ood
ou s o sa is sk ocke in de and e second ha is o e and id h alue an o e iaSa had e enues
o hi h s eed esiden ial da a han he co ined ca aci o n elsa o in he os ecen ua e
se ices and S S iaSa s o la es ee s i h ne inco e o us
ank e said
he ne sa elli e o iaSa ill i e Sha es in he co an a e u e
he asda lis ed co an ased n elsa he o lds la es o ide cen o e he as on h o a ou
in Cali o nia he a ili o e ec i el o ed sa elli e se ices ecen l i in i a a ke ca i alisa ion o
co e e i h o he non e iu ou lined lans o in es n in ou n s ild Blue se ice has a ou
in e ne o ide s hich s ill a e ne sa elli e launches he end o cus o e s in he S a in
he onl o ions o illions o S iaSa in c o e success ull a ou e on h o sa elli e
consu e s launched i s ne iaSa one o he in e ne se ices ank e ho es
hi hes ca aci da a sa elli es in he o e le he nu e o su sc i e s in
s and id h ill also e used o o ld Launched i h a o on ocke he co in ea i h ca aci o he
o e he in i h i eless in e ne in a akhs an he sa elli e is no in ne sa elli e he co an also akes
se ice o e Blue he S ca ie eos nch onous o i iles one su l in co onen s o
a o e he ea h is o e ed o he sa elli e ake s and sellin
he iaSa launch is likel o e e ide sola anels ncludin se ices o co anies and he S
e elco ed he ede al launch cos s and insu ance he o e n en
Co unica ions Co ission hich sa elli e cos iaSa
is ushin o solu ions o he di i al ne o iaSa s cus o e s is ish
di ide es eciall in u al a eas ank e conceded ha his e o ks he sa elli e o ide
e ha e a eall ood se ice a indus aces an u hill a le hich esells i s se ice o S
a easona le ice e can kee Sa elli e doesn ha e a ood consu e s a lie his ea ish s
e andin he a ke said a k e u a ion o oad and se ice a en co an choS a ac ui ed
he said o eo e ildBlue he u hes Co unica ions a iaSa
ank e iaSa s chie e ecu i e consu e acin se ice iaSa i al a o e ha could see ish d o
Sa elli e ill e e e o a lo o ac ui ed in has no u aded iaSa as a su lie
eo le han SL o i s se ice e en as he use o da a
 London Business School Case Book

Solon anagement Consulting

ural Broadband

ifferentiation between oor average and su erior erformance o e ie a e he case in e ie

Poor Performance Average Performance Su erior Performance

raming roblem ails o iden i he a e den i es u al a ke Co ec l iden i es u al
rioritising issues a ke as ein he u al as a e u ails o see a ke nde s ands
a ke se ice o consu e na u e o consu e
oin o ie choice in his a ke and
unde s ands ho cen al
his is o o osi ion

Identif ing relevant oes no co ec l iden i den i es a oun in es ed nde s ands ha

information su in es ed hich is and a e s o d ill do n consu e choice in u al
i en in o he s o ails in o de ni ion o u al u a ke s e di e en
o unde s and i o ance s o s sho o a con incin o o he a ke s o
o u al a e a ke o eason h u al a ke is unlikel o e ca le
he oduc an i o an de ni ion in e ne nl choice is
SL o es o nd ou
a ou SL dis ance li i s

unning calculations oes no si e he a ke s a le o co ec l si e he Si es he a ke and is

drawing conclusions from co ec l ie does no a ke usin a o ia e a le o ela e si e o a ke
facts use es i a es o d ill do n assu ions uided he o likel a ke e enue
o S o ula ion o u al in e ie e usin assu ions
o ula ion Si es a ke Candida e hen a e s o
on eo le no households co a e B o en ial
a ains in es en cos

Identif ing ke im lications oes no eali e ho Si es he a ke co ec l Si es he a ke and

and ne t ste s s all he a e a ke and is a le o iden i o oses c ea i e a s
demonstrates creativit is co a ed o he e ui e en o u he o e and he a eal
in es en cos u side non u al a ke s o he oduc i hou
ai line a ke o us i co o isin he ice
in es en cos e iu he oduc
can co and in i s ain
a ke
 London Business School Case Book

ohnson and ohnson

A Trocar Business Case P IT

uro e iddle ast and Africa S

Case Background
as he end o he eek aul a cun as shu in do n o he da no close o esol in his dile a s ice
esiden o hicon ndo Su e S in he had een o kin on he usiness lan o he ne nancial ea
hen his a en ion as d a n o he da a on he oca usiness as clea ha so e hin as oin on in he a ke and
ha he needed o uickl e o he o o o i

S is one o he ohnson ohnson s su e lo all h ou h inno a ion in he S oduc an e o

edical de ices usinesses oduc desi n hi h uali oduc s la a osco ic su e includes access
s ecialisin in oduc s used o o en o essional educa ion and e cellen de ices oca s s a lin de ices
and ini al access su e as ell su o ea s ac oss he o ld his li a in de ices su ical ins u en s
as ad anced ene de ices he con i u ed o he inc ease in la and ad anced ene de ices
usiness has o n o s a u in su e ado ion o ince ion in
oa B lo al usiness ih o es i a ed in
head ua e s in Cincinna i hio i s
usiness e ends ac oss all e ions

S led he ado ion o la a osco ic

A new wa of erforming surger

n Ba c e nan a e How inimall Invasive Bene ts of minimall invasive
akin onl a incision inse ed Procedures work rocedures
a la a osco e o inia u e ca e a ini all n asi e ocedu es o onl do hese ocedu es usuall
in o a a ien s a do en and e o ed hich include la a osco ic su e o ide e ui alen ou co es o
a all ladde he a ien eco e ed use s a e o he a echnolo adi ional o en su e hich
in da s a he han eeks o on hs o educe he au a o hu an so e i es e ui e a la e incision u
his as he s la a osco ic issue hen e o in su e ini all in asi e ocedu es usin
cholec s ec o e o ed in he S o e a le in os ocedu es a s all incisions a o e si ni can
and he e innin o he ini all su eon akes se e al s all inch ene s as ell
in asi e o e en in su e incisions and inse s hin u es called
oca s Ca on dio ide as a e i rr o r Since a ini all
Since hen ini all in asi e used o in a e he a ea c ea in a in asi e ocedu e e ui es s alle
ocedu es ha e een chan in s ace e een he in e nal o ans incisions han con en ional su e
he a eo le hink a ou su e and he skin hen a inia u e ca e a he od a heal uch as e
a ien s ho choose hese inno a i e usuall a la a osco e o endosco e
ocedu es o e con en ional su e is laced h ou h one o he oca s ort r o ital ta ini all
usuall ha e sho e hos i al s a s and so he su ical ea can ie he in asi e ocedu es hel e a ien s
uicke eco e his eans e in ocedu e as a a ni ed i a e ou o he hos i al and ack o li e
ack soone o he hin s ha a e on ideo oni o s in he o e a in soone han con en ional su e
i o an in li e oo hen s eciali ed ins u en s
a e laced h ou h he o he oca s ain Because hese ocedu es
o e o he ocedu es n so e a e less in asi e han con en ional
cases such as ini all in asi e su e he e is icall less ain
colon su e a sli h l la e incision in ol ed
a e needed
arrin os incisions a e so
s all ha i s ha d o e en no ice he
a e he incisions ha e healed

nnual e o
no a ion a ou la a osco ic su e h s a e a ien co a ien lea n o e ini all in asi esu e
 London Business School Case Book

ohnson and ohnson

A Trocar Business Case

Two categories of la arosco ic Ad an d la aro o hese

surgical rocedures co ise o e ad anced ocedu es
a i la aro o hese a e oadl e ui in ad anced la a osco ic
asic ocedu es ha e ui e asic o su e skills hese include colo ec al
in e edia e la a osco ic skill le els e o al o la e in es ine se en s
hese include cholec s ec o all a ia ics o esi su e ho acic
ladde e o al a endec o e o al o lun issue and ad anced
a endi e o al and a nu e o naecolo ocedu es hese
asic naecolo ical ocedu es a e o en cance ela ed ocedu es
hese ocedu es a e usuall ha e ui e lon e han one hou o
co le ed in less han an hou i h co le e and in ol e ela i el la e
ela i el e ins u en e chan es nu e s o ins u en e chan es
and o en non cance cases

The trocar market overview

oca s a e laced h ou h a do inal a l tro ar cos conscious S and he o he leadin la e s
incisions o allo la a osco es and hos i als con inue o sho a in he oca a ke a e i a il in
o he ins u en s o en e a a ien s e e ence o eusa le oca s hich he dis osa le a ke his a ke
od Because he a e used in all o e a lo e cos e ocedu e a illion in is o in a
la a osco ic ocedu es oca uni des i e a hi he u on ice and can co a ed o o h in
o olu e sale o h ill closel e used an i es e o e da a e he eusa le a ke
co ela e o su ical ocedu e olu e he e e ence o eusa le oca s is
o h a icula l s on in e an hich he e a e ho e e si ni can
icall has a hi h euse a e o a ia ions in he a ke e een he
oca s a e a aila le in in ei he an edical de ices o de elo ed de elo ed and e e in a ke s as
dis osa le o eusa le e sions a ke s and is also e iden in he sho n in a le a le
e e in a ke s anu ac u e s
i o a l tro ar consis in o o dis osa le de ices ho e e
ladeless laded and lun i a e es ondin o his endenc
oca s ill con inue o e esen he a essi el a ke in he ad an a es
a o i o he e enues ea ned in he o dis osa le oduc s n a e a e
oca a ke o e he ne se e al he asic la a osco ic ocedu es use
ea s hese de ices a e ene all oca s e case he eas ad anced
seen as o e con enien and sa e la a osco ic ocedu es use
han eusa le de ices ecause he do oca s e ocedu e
no ca a isk o iolo ical c oss
con a ina ion Because hese de ices he oca a ke co isin
can onl e used once he ene a e eusa le and dis osa le de ices
hi he e enues e ocedu e hich ene a ed e enues o o e
su o s a ke e enues illion in he con inued inc ease
in la a osco ic ocedu es ill lead o
s ead o h h ou h a le
u he o e as a esul o s e ili a ion
conce ns he e is a s on e e ence
o dis osa le oca s hich ene a e
hi he e ocedu e e enues and
con i u e o ea e a ke o h
B he oca a ke
ill e alued a o e illion
e esen in a C o a o i a el

his eans ha he ocedu e e ui es o e ins ances o assin ins u en s h ou h he oca s and hus he uali o he oca can ha e a di ec i ac on
ocedu e du a ion
 London Business School Case Book

ohnson and ohnson

A Trocar Business Case

Com etitive landsca e

n hicon ndo Su e led lied edical held he hi d leadin os i als in de elo ed a ke s
he u o ean a ke o oca s osi ion in he dis osa le oca ill icall si n an annual su l
i h he C L oca a ke in and has een a idl con ac i h a oca anu ac u e
an e ollo ed closel Co idien ainin a ke sha e in u o e o e so ha s i chin e een su lie s
C L is seen as he he las e ea s a icula l in he du in a ea is unco on o e e
e iu o e o in oca in e an and ance lied e e in a ke s a e o en ende
he a ke Bo h o hese s ee edical co e es in his a ke d i en o ua e l u chases
success ul holdin s on osi ions o e in i s oduc s a a uch lo e
in he dis osa le se en hich ice han hicon ndo Su e and n he uch s alle eusa le oca
ene a es a ou i es he e enue o Co idien hich allo s i o secu e se en LS is he a ke
he eusa le se en a ou i es in con ac s a on cos conscious leade ollo ed l us e
de elo ed a ke s u he o e o h hos i als lied edical is also o he co e i o s e e also ac i e in
o hese co anies a e ell kno n e andin i s each in o he e e in he u o ean oca a ke includin
in e na ional s i h hi h uali a ke s o i h i s lo cos icha d ol escula a B B aun
de ices and ide oduc an es o e in ein e a ac i e o hose co an and C See a le
a ke s o a ke sha e es i a es lso see
Bo h o hese co anies a e ell a le o es i a ed ela i e icin
osi ioned o e ain leade s in he
oca a ke h ou h

Signi cant trends

e o s o he a ke ha e in so e coun ies n e e in of tro ar dis osa le oca s
hi hli h ed he ollo in ke ends in a ke s he e e se has occu ed a e o en e s e ilised and eused in
he a ke s he e coun ies a e os in ood he e e in a ke s o he e ion
o h and inc easin heal hca e i en in ec ion isks he end is no
ro in inimal n a i ro d r s end o se ed in he de elo ed a ke s u
Ado tion coun ies all ac oss he i is es i a ed ha oca s a e used
e ion a e inc easin l ado in n r a in o r of non lini al a o i a el i es in he e e in
la a osco ih ene a ion a e ta old r he ole o he a ke s he ain iden i ed o i a ion
o o e all o asic ocedu es h sicians as he i a decision o euse is cos educ ion as he ice
in de elo ed a ke s he ene a ion ake in he selec ion o edical o a oca is s ead ac oss ul i le
a es a e o e hile e e in consu a les has een chan in o e uses o e e i o in a ien
coun ies a e s ill elo he se e al ea s o a oin he e hos i al a a eness and e ula o en i on en
ene a ion a es a e e ec ed ad inis a ion s a no ha e e ual in he e e in a ke s a educe
o inc ease in o os l in he o ea e oles in oduc selec ion le el o euse
ad anced la a osco se en his has inc eased he ole o ice
aided i o ed h sician skills in u chase decisions o hos i als in l ort la aro o n uo e
and acce ance heal h echnolo ac oss he e ion he e is conside a le in e es in
assess en odies o la a osco as he use o sin le o la a osco
eco ended o e o en ocedu es ro t of lo o t om titor he e de ices hich a e ene all iced
See a le o ocedu e olu e a e inc easin nu e s o lo cos a a e iu he eas ado ion
o ecas s in o anu ac u e s en e in he oca a es a e s ill e lo less han
a ke a e in cus o e s in o h o la a osco ic ocedu es indus
lo al onomi rforman he he de elo ed and e e in a ke s sou ces e ec ha he use o hese
ecen ecession and cu en so e ei n he eas he uali and e o ance de ices ill inc ease o e he o ecas
de c isis ac oss uch o u o e has o he lo cos co e i o oduc s e iod d i en i o ed h sician
led o cu s in o e n en s endin a e usuall elo he ainin a ou a le esul s o clinical
ac oss he e ion n de elo ed le els o he e iu oduc s he s udies and a ien de and o he
a ke s o e n en heal hca e uali is e cei ed o e i o in sin le o echni ue S ilo ed a
s endin is declinin u o es eciall o asic la a osco ic Sin le Si e La a osco SSL o in
ocedu es u has no e ecu ed a ull launch

Sou ce illenniu esea ch ou

See h nice o uk nice edia li e d o a ecen a ional ns i u e o eal h and Clinical cellence e ie o la a osco ic colo ec al su e
his is an in e nal es i a e ased on co aai e e o ance in ease o en ain enance o as essu e and oca e en ion
h en iki edia o iki Sin le o la a osco
 London Business School Case Book

ohnson and ohnson

A Trocar Business Case

Paul s dilemma
he da a o he eld as sho in PATH C trocar u grade The BAS ro ect
inc easin ice essu e in he he e has een e li i ed inno a ion S has de elo ed a ne an e o
oca usiness i h o e cus o e s in he oca oduc s ace he oca s called B S hese oca s
conside in he lo e cos oca s oduc echnolo has la el a e sui a le o asic la a osco ic
as a a o educe ocedu e in u e ained he sa e o e he las ocedu es u no conside ed ideal
cos s inc easin l looks like he ea s i h onl li i ed enhance en s o ad anced ocedu es he e is
C L ill s u le o ade he leadin co e i o s he ossi ili o launch his oduc
ain ain i s a ke sha e a he cu en o e e S has een o kin on he anu ac u in and dis i u ion
ice oin nu e o a ke in so e si ni can enhance en s o he cos s o he B S ill e si ila o
ea s o coun ies in he e ion a e C L an e hich ould he C L so ha he e
conside in ice chan es o es ond si ni can l i o e i s e o ance ill e oss a in a ia ion i h
o he o in lo cos co e i ion add essin so e o he ke C L ased on he
his ill ha e si ni can i lica ions conce ns e o ed h sicians in ela i e ice decided
on he usiness lan nu e s o ne e o in la a osco ic su e
ea and in o he s a e ic lannin
ho i on e also has o o ec s o
conside in decidin a lan o he
oca usiness

our challenge
aul needs o ake so e decisions and has scheduled a ee in ih S esiden o discuss his lans and e ui es
ou ad ice

uestions to answer

s aul ould ou eco end ha chan e i an ould ou ha s e s and o o he

he launch o B S and a ha ake o he osi ionin o he conside a ions ould ou
se en a ke should i e C L oca s an e ha ill e o ose o i le en in ou
osi ioned decided o launch he e enue i ac eco enda ions
a ha ice ela i e o he
C L an e ha i an ide s a e ic
eco enda ion ould ou
ake o he Co an esiden
e a din he oca o olio in

Case Com etition inning Presentations

he ohnson ohnson Business Case Co e i ion as o en o s uden s o London Business School S
and S and as on London Business School he links o he innin esen a ions a e hos ed on Ca ee
Se ices o al London Business School s uden s and alu ni can access he scannin he o ile a code elo
ia hei S a hones

he B S e o ance is es i a ed a elo C L e o ance

 London Business School Case Book

ohnson and ohnson

A Trocar Business Case

hibits
Table A Trocar arket stimates
alue arket in S CAG
o al a ke eusa le dis osa le
eusa le a ke
is osa le ne a ke
S Sales
on S Sales
o al a ke o h ae
Sou ce n e nal s i a es

Table evelo ed arket Trocar arket stimates

alue arket in S CAG
o al a ke eusa le dis osa le
eusa le a ke
is osa le ne a ke
S Sales
on S Sales
o al a ke o h ae
Sou ce n e nal s i a es

Table merging arket Trocar arket stimates

alue arket in S CAG
o al a ke eusa le dis osa le
eusa le a ke
is osa le ne a ke
S Sales
on S Sales
o al a ke o h ae
Sou ce n e nal s i a es

Table Trocar arket Share stimates

is osable eusable
S
Co idien
lied edical
LS
icha d ol
l eusa les us C
escula a B B aun co an
he

Sou ce n e nal s i a es

Table is osable Trocar elative Prices

S
Co idien
lied edical
Sou ce n e nal s i a es

Table A Procedure olume stimates

CAG
Basic ocedu es Colec s ec o ll
endec o
d anced C e Ba ia ics ll
ho acic
o al ll
Basic ocedu es Colec s ec o
endec o
d anced C e Ba ia ics
ho acic
o al
Basic ocedu es Colec s ec o en
endec o
d anced C e Ba ia ics en
ho acic
o al en
ado ion a e ll
ado ion a e Basic
ado ion a e d anced
Sou ce n e nal s i a es
 London Business School Case Book

ohnson and ohnson

A Trocar Business Case

Table evelo ed arket Procedure olume stimates

CAG
Basic ocedu es Colec s ec o ll
endec o
d anced C e Ba ia ics ll
ho acic
o al ll
Basic ocedu es Colec s ec o
endec o
d anced C e Ba ia ics
ho acic
o al
Basic ocedu es Colec s ec o en
endec o
d anced C e Ba ia ics en
ho acic
o al en
ado ion a e ll
ado ion a e Basic
ado ion a e d anced
Sou ce n e nal s i a es

Table merging arket Procedure olume stimates

CAG
Basic ocedu es Colec s ec o ll
endec o
d anced C e Ba ia ics ll
ho acic
o al ll
Basic ocedu es Colec s ec o
endec o
d anced C e Ba ia ics
ho acic
o al
Basic ocedu es Colec s ec o en
endec o
d anced C e Ba ia ics en
ho acic
o al en
ado ion a e ll
ado ion a e Basic
ado ion a e d anced
Sou ce n e nal s i a es