贝恩咨询贝恩《Case Interview》11页.pptVIP

Bain Company:Case Interview Introduction Take notes Ask questions Structure your analysis Drive towards a recommendation Case Question: Entertain Me Music retailer: cassettes, CDs, and videos Business Activities Mail order—records and tapes Went public Expanded retail stores to 400 mall-based stores Recent focus on Internet Mail order channel was allowed to die Issue: Declining revenue and margins Structure your approach Wrong: Always use the same framework regardless of the business issue Better: Clarify the primary business issues Evaluate options Explore broader issues to determine if channel segmentation is appropriate during analysis Same product competing in overall market Channels may have cost advantages Framework Cost of Goods Sold (COGS) Multi-channel approach in order to increase volume and decrease unit costs Sales, General Administrative (SGA) Retail: sales people Mail Order: call centers Internet: promotions, ads, program development These channels may share general overhead, but it is important to explore points of differentiation: Activities Customers Competitors Competitors Customers Online competition is highly fragmented Mail Order: historically have focused on this channel; now moving online Retail stores: off-line consolidation; moving online Internet: Many Internet-only retailers Customer demographics for various channels differ Channels Retail: Adequate, consistent with industry standards Mail Order: May have been a cash cow even if market growth was declining Internet: Drive profitable growth Strategic Issues Level of differentiation Reputation Mall stores: easy returns, advice from entertainment associates Metrics Revenue +10% in 1997 +2% in 1998 - 10% in 1999 compared to 50+% market growth Cost Performance Structure: How does this overall cost structure compare to the cost structure within each channel? 60% COGS 10% distribution SGA up 5% over last 2 years Revenue Analysis Decline in prices Lack of diffe