招群專屬大禮包10casebook kenan flagler值得信賴的一站式職業(yè)發(fā)展教育平臺

小灶是一個面向大學生的一站式職業(yè)發(fā)展教育平臺。小灶品牌旗下包括以［小灶計劃］、［名企實習］為代表的四個，以小灶學徒項目為代表的線下系列，以及即將于2016年8月正式上線的職業(yè)發(fā)展課程(ww-wxiaozaoorg小灶由杜克大學創(chuàng)業(yè)團隊創(chuàng)建，以杜克大學－新加坡國立大學專利腦科學技術為教育體系建設，以頂尖MBA職業(yè)教育理念為基礎，結合創(chuàng)始團隊超過40年的職場經(jīng)驗，打造國內(nèi)最高質量的大學生職業(yè)發(fā)展教育平臺。小灶計劃（訂閱號）快速獲取求職干貨

小灶學徒顧問（服務號）求職問題有問必答Kenan-FlaglerBusinessSchoolConsultingClubSeptemberCaseIncludingActualCasesfromInterviews-A.T.Bain&BoozAllen&TheBostonConsultingCorporateDecisions,Deloitte&ToucheConsultingMcKinsey&MercerManagementComplimentsoftheClassof Dead Bain& TomHooverKFBS‘97 November3,Set isalargefamily-runfurniturebusinessinNorthCarolina.Whilethe hasastrongbrandnameandgooddistributiontheysufferfromthecyclicalnatureofthefurnitureindustryandarelookingtostabilizeearnings.Oneofthefamilydeterminescasketsmightbeagoodoptionforthefamily. shouldenterthecasketGoalofFramework: Thelineofquestioningshouldinvestigateiftheycanstabilizeandincreaseearningswithoutdisruptingtheircurrentfurnituremakingbusiness.Theintervieweecanusethe3C’sorthefollowingpseudoFirstoffinmoststrategycasesistoaskwhywe’re yzingacertaincase.Whilethiscaseisandwillbeaboutthecasketmarket,theintervieweeneedstoaskifthereisanotherwaytostabilizeandincrease Maybetheycaninvestandhedgeagainstthecyclicalityoftheindustry.Anotherquestioniswhetherthisfamily-run wantsto plicatetheiroperation?i.e.,ifGrandpaisabouttodieandtheson/daughterwantstodosocialworkinstead.ButonwiththeDoes havetheskillstomake Yes.They’rerelativelysimpletoDoes havetheaccesstomoreraw Canthe hiremoreskilledworkersifnecessary?Yes.Tougherthanonewouldthinkthough.Wouldtheworkershaveaproblemmakingcasketsi.e.robthemoftheirprideofproduction?Yes,butifthecasketweremadewiththesamequalityastheirotherproducts,itwouldbelessofaproblem.Usingtheprofitstoprovidehealthinsurancewouldbeanicegesture.Howcanthe sellthecaskets? Obviouslytheycan’tleveragetheirfurniturebusiness.Butthereisanetworkofcasketdealersthroughoutthecountrytheycoulduse.Canthe getaccesstothisnetwork?Sure,iftheyprovideagoodproductandhighmargins.Whataboutotherdistributionmodesi.e.directsells,Internet,etc.…Goodquestionbutadifferentcase.Howaretransportationcosts? Casketsarebigandheavyandthusexpensivetoship-limitstheoperationtotheSoutheast.Doesthe needtoinvestinnewmachinery? Yes.Amountabout$3MM.Theycangetaloanandthedebtburdenwouldn’tbetooheavy.Whatratios/numberswouldyoulookattodeterminethis?Whatbrandnametouse?Discussprosandconsofabrandnamelinkingafurnitureandcasketmaker.Namerecognition,thatcreepyeeriefeelingwhenyoulieinyournewbed,thecacheofanEthanAllenWhatprice?Assume$1000But…Mktsurvey,demandcurves,Howmanycasketscanweexpecttosell?Thisisthequestionyouhavetoaskanddreaded-letthecalculationsstart.Assumeonlyadomesticindustryatfirst250,000,000peopleinAmericaAssumea1%deathrate(2%wouldalsobereasonable)2,500,000deadpeopleintheUS.50%usecaskets(otheroptionscremation,cryogenics,etc…)1,250,000casketusersAssumeweresellingmiddletoupperclasscasketsuse50%625,000middletoupperclasscasketusersintheUSAssumethattransportationcostsarehigh-limitsdistributiontoSoutheastabout25%Somewherearound160,000possiblecasketstosellperyear.SothequestionremainshowmanycanweWhatmarketsharecanweachieve?30%orabout50,000casketsaWhatisourcapacity?Hey200casketsaday.Thanksbuddy-200/day*250workdays/yr=50,000/yr.Sowemaynotget50Kthefirstyear,butwithin3yearssure.SocanwemakemoneyatthisoncewegetPriceper Costper 50,000caskets*$100percasketHowdoesthiscomparetothecorefurniture Revenues ProfitsBasedonnumberslooksgood,but…Willitaffectthecorebusiness?Doesitachievethegoalsitwanted?Arethereotherwaystoachievethisgoal?Doesthemgmtreallywanttoownacasket?Attheendofthecaseyouareaskedtovotefororagainsttheidea.Donotwaver.Stateyourreasonsandstateaposition.ThisisinlinewiththeBainculture Golf Bain& Second(I AndyPodolowskyKFBS‘96asrememberedandinterpretedbyTomHooverKFBS‘97 AfriendofyourshasamoneymakingopportunityandconferswithyouastowhattoHewantstocleanthegolfballsoutofthelakeatthelocalgolfcourse’sinfamous“13thhole”.Hehasdoneabitofresearchontheprogramandwantstoknowwhetherheshouldpursuethisopportunity.PleaseQuestionsthatcould/shouldbeaskedandinformationtobeHowmanyballscanhecleanoutofthe Thereare20,000ballsinthelake.HeconceivablygetalltheHowmanyballsenterthelakeperyear? 1,000.Youcanassumethatthisis,hasbeen,andwillbeaconstantamount.ForhowmuchcanhesellarecoveredGoodfollow-up:Howmanyoftheballscanhesellper

Allballsthathavebeeninthelakemorethan5yearsareworthless.Ballsinthelakeforlessthanthatareworth$1perball.Hecannegotiateacontractwiththeproshoptoselltheballs.Theirdemandforusedis50,000/yearandyouwouldbetheirfirstHowmuchdoesitcosttorecovera HehasaPADIcertifiedscubabuddywhoscourthelakecollectingballsforhim$10/hr.Inonehourhecanrecover100Canthescubaguyseparatethebadballsfromthegoodballswhilehe’scollectingthem?Howcanheseparatebadballs(>5yrsinlake)fromgoodDoeshehaveanybetteroptions/opportunitieswithhis

No.He’sgottocollectthemfirstandthendeterminetheage.Thereisamystical,magicalmachinehecouldbuyfor$4,000thatwillseparategoodballsfrombadballs.Thisismerelyafixedcostdon’tletthemlingerinthisblackbox.Doeshehaveadiscountratehewantsto Strangelyenough,yes.Hesaysa10%is Costsand1styear:Costs=labor+sortingmachine=$4,000=Revenue=Goodballs*price/goodball.5,000*1=$5,000.Profit=$-

costs=labor=Revenue=Goodballs*price/goodball=1,000*1=1,000Profit=IftheycollectonceaTotalprofit=PV=-1,000+PV(yr1)+Thislastsectioncouldbeevaluatedasperpetuityinyear1whichwouldhavetobediscountedtoyear0.Thus,$900/.1=$9000valueinyear1.Thus,inyear0thisisworth$9,000/1.1whichis$8,181subtractthe$-1,000andgetapositiveNPVof$7,181.Iftheapplicantcandothis,they’llprobablygetajobwithGoldmaninstead.Notes:RisksTheintervieweewouldbewellservedtostatetherisksinvolvedinthisventure.Someare:Whatifsomeonesneaksinandtakesthegoodballsafterthebadballsareclearedout.Whatiftheproshopclosesandcan’tselltheballs,Whatifyougetcompetitionintheusedgolfballmarketandthepriceyoucangetisdecreased?

mendation:Doit,signcontracts,andprayforthebest. Gas TomHooverKFBS‘97 There’salotoftalkaboutfuelefficientcarsbeingagoodconsumerpurchase.Aisthinkingofspecializinginfuelefficientcars.They’retryingtodeterminewhatpricetouse.Utilityasidehowmuchvaluearetheygivingtheircustomers.

Assumeacarcanbesoldfor$20,000thatgetsHowmuchcantheexactsamecarbesoldforthatgets25Theintervieweeneedstoaskthreequestions-Howmanyperyear?10,000Howmanyyearswillthecarlast?10Howmuchpergallonofgas? Thesenumbersaregiventomakethemathsimple.Iftheintervieweewantstouseothernumbers…Sothenormalcaruses500gallons/yr.andthefuelefficientcaruses400gallons/yr.So,5000gallonsoverthelifetimevs.4000gallons,soits$1000ignoringthetimevalueofmoney(nicetomentionitthough).Sothecarcanbesoldfor$21,000ignoringutilityconcerns. OlympicProblems AT KishaGreenKFBS’97 YouareinAtlantaduringtheOlympics.YouworkinacelikeCentennialPark,wherevendorsselldifferentitems,memorabilia,refreshments,etc.Theareaisdividedintofourregions,eachofwhichhasaregionmanager.Youarearegionmanager.Themiddleoftheparkisonaverysteeplyslopedhill,andyourregionhasanescalatorthattransportspeoplefromyourregiontotheregionadjacentto(andabove)you.YouarehalfwaythroughtheOlympics,atthebeginningofthesecondweek,andthroughoutthefirstweektheelevatorhasbrokendownquiteoften.Thishasbeenamajorheadacheforyou.Q1:Whatareyouralternativesfordealingwiththeescalatorbreakdown?(Thinkhowtogetpeoplewheretheyneedtogo,managetraffic,andfixtheescalator)Nowyou'vecalledinthemanufactureroftheescalatortolookattheelevator,becauseyouwantitQ2:Whataresomeoftheissuesyoumustconsiderindetermininghowbesttosolvethisproblem,oncethemanufacturergivesyousome Nowtheescalatorpeoplecomein,lookattheescalator,anddeterminethatasuper-dupermotorisspecifiedforthisescalator,buttheonecurrentlyinuseisaregularmotor.Hecangetyouasuper-dupermotorinandinstalledbythefirstthingthenextmorning.Thecostis$4000,butyourentirebudgetisonly$3000.Q3:Whatareyouralternativesforfundingthismotor?Q4:Whichwouldyouchooseandwhy?Q5:Giventhatthisisyourchoice,howwillyoupersuadetheappropriatepartytodowhatyouneeddone?Let'smockit.SayIamthatandyouhavetopersuademe. ATKearney KishaGreenKFBS’97 Theisaclassringmanufacturer.Itisanational,likeJostens,anditisorganizedintoregions.Itistheleaderintheindustry,witha20%marketshare,followedby3othercompetitorsthathave15%each.Theremainderofthemarkethasmanysmalleryers.ThedividestheU.S.intoregions.TheSoutheastregionishavingaproblembecauseitssales,onapercapitabasis,arelowerthanintherestofthecountry.Hewantstoknowhowhecanincreasehissales.Howdotheysellthe90%oftheirsalesaredonethroughindependent,"momandpop"distributorswhoinitiallyapproachtheprincipals.Theprincipalwilleitherallowthemtosellinthehallways/foyersoftheschoolorhewon't.Therearetwowaysthatthedistributorwillselltheserings.Eitherexclusively,meaningheistheonlyonesellinginthatschool(thisis90%ofthetime)oradualarrangement,whereanotherdistributorsellinganotherbrandmayalsosellatthesametime(10%ofthetime).Theother10%ofthesalesaredirectsalesthroughour'sDothedistributorssellseveraldifferentbrandsofNo.Anysingledistributorwillonlysellour'srings;butthedistributorsmaysellotheritemsliketee-shirtsorbumperstickers.HowdoesthatcomparetohowtheysellthemintherestoftheIntherestofthecountry,theyaresoldalmostexclusivelythroughdirectAretheirpricesconsistentacrosstheThe'sdirectsalesfollowsthepricelistveryclosely.Thedistributors,however,aretosettheirownpricing.Thisprobablydoesaffectthesaleslevelsthere,becausethedistributorsareprobablyactinglikemini-monopolies,settingpricetoizetheirownprofit,ratherthanthatoftheasawhole.HowdoesthecompetitiondointheSouthOurmarketshareintheSoutheastisverysimilartothatofthecountryoverall.Competitivepressuresarenotverystrong.WhatisthenatureoftheYoulThecustomersarehighschoolseniors,graduating.Theymayormaynotbegoingontocollege.Whatisthetypicalyieldforsellingintheschools?ItisaboutThatseemsfairlylow,giventhatthestudentsarekindofacaptiveaudience.Whydothecustomersbuytheirringsvs.Someoneelse'srings?WhatdoyouseeasdifferentiatorsamongTheyareprobablysomewhatofacommodity.Brandnamerecognitionmayinfluenceit,butlargely,aclassringisaclassring.Pricemustbeakeyconsideration.Thosestudentsthattheylosewillprobablygotoajewelrystorewithaparentandbuyacheaperring,ifthedistributorsarepricinglikemonopolies.Sowhatarethe'sWhatcoulddotoimprovesaleswiththeexistingThecouldchangetodirectsalesintheSoutheast.However,thisseemslikearelationship-basedsale.Theinitialsaleisreallytotheprincipal,andWhatcoulddotoimprovesaleswiththeexisting ATKearney KishaGreenKFBS’97 Theisanationalretailer,likeSears,with800storesintheUSplusservicefacilitiesinbusinesstorepairsoldmerchandise.Theservicefacilitiesarenotlocatedwiththestore,butareusuallynearby,likeacrosstheparkinglot.Thewantsustogivehimapricingstrategyfortheprovisionoftheseservices.Givemeyourapproach,yourhypotheses,andthetypesofdatayouwouldneedtocollect. KishaGreenKFBS’97 Theisadishmanufacturer.Thissellsdishesandnicepots/panstostoreslikeWilliams-Sonomaandlargedepartmentstores(Macy's,Hecht's).The hasitsowntrucking/logisticsorganizationthatdeliverstheproductthroughoutthecountry.The thinksthathisdistributioncostsareoutofline.Howwillwedetermineiftheyare?Howdoesdistributiontakece.ArethereseveralmanufacturingfacilitiesanddistributioncentersthroughouttheUnitedStates?ThehasonemanufacturingfacilityinTennessee.Fromthere,theproductisshippedtooneof10distributioncentersthroughouttheU.S.Theproductisthendelivered,eitheronatruck,orifit'stoofartodeliverbytruck,viaairfreight,totheretailer. Wall McKinsey& WillWolf‘97Ourisa$700millionmanufacturerofbuildingproducts.Thevastmajorityoftheirunitsales,revenuesandprofitabilitystemsfromthemanufactureofwallboard--thegypsumandpapermaterialusedinbuildingconstruction.Theistroubledbythecyclicalnatureofthewallboardindustry.Theytypicallywillexperienceeightyearsofhappyprofitabilityfollowedbyfourtofiveyearsofmisery.Ourgoalistwofold.First,wewanttoreducethecyclicalityofthe’scashflows,thenwewanttogrowthebusinessIfyouwereleadingtheengagementteamworkingwiththis,howwouldyoudesigntheWhatissueswouldyouwanttoYourbasiccommodityindustrycase.Pleaseapplymicroeconomicsandadashofmanagementaccounting.IapproachedthefirsthalfofthequestionwiththethreeC’sframework-customers,competition,and.Statedahypothesisthatwentsomethinglike“soundslikeacommoditycase.AssuchI’llbelookingforwayswecan moditizetheproduct...”O(jiān)rsomething.Customers:drillingdownthisholerevealedthatthemainlydconstructionfirms,customerstotallyvulnerabletothebuildingcycle.Theywereweakintheretailbuildingproductschannelandthereseemedtobesomeopportunitythere.Competition:turnsouttheU.S.isdividedintofivebuildingregionsandourdominatesthree.Wediscussedthepossibilityofpenetratingtheremainingtwoshouldthebuildingcyclevaryfromregiontoregion.:usedthesequestionstolearnmoreabouttheirdistributionsystemandtherelativecostoftransportation.Discussedthepossibilityofhavingtheconstructionfirmscashandcarrytheirownwallboardsincetheyseemedtohavetheirowntrucks.Andthefirmhadntsvirtuallyeverywhere.Thiswouldkeepthefirmfromcarryingtoomanydeliverytrucksintheleantimes.AlsotalkedaboutflexibleTduct NewMoneyorNo McKinsey& WillWolf istheCEOofamajorregionalbank.Thebankownsadataprocessing.Recentlythe ofthedataprocessing askedourtoinvest$100millioninnewprocessingtechnologyforthefirm.The feltthatthisinvestmentwouldmakethemmuchmorecompetitive.Atthistimeourapproachedusandsaid“$100millionisalotofmoney.ShouldIdoIfyouwereleadingtheengagementteamworkingwiththis,howwouldyoudesigntheWhatissueswouldyouwanttoQuestionnumberone,beforecomingupwithahypothesis,shouldbe“what’sadataprocessingfirm?”Turnsouttheymostlyprocesschecksforsmallbankswithintheregion.Thebelievestheycangainagreatershareofthesesmallbankswiththenewinvestment.Weknowfromreadingthenewspaperthatsmallbanksaredisappearingsoimmediaywehavetobeconcernedaboutthecustomerbase.Workthisintoahypothesis.MyhypothesiswasthatthiswouldbeabadideabecauseofconcernsaboutthecustomerThisquestionwouldultimayleadtoabasicNPVysis.But,toreasonablydeterminethecashflowswehavetoknowmoreaboutthethreeC’s:customers,competition,and.Itturnedoutthatthecustomerbasewasshriveling,thatthecompetitorsforthesmallernumberofbankswerehugeandlow,lowcostproviders,andthatthecompaniescoststructureandparticularstrengthswouldkeepthemfrombeingcompetitivewithlargeryerslikeTRWandEquifaxnomatterhowmuchtheyinvestedintechnology. Truthin McKinsey& WillWolf‘97Interviewer:“I’mshopforanewcar.I’mnotreallyconcernedaboutprice.Instead,mynumberoneconcernissafety.IhavekidsandIwanttoknowthattheyareridinginthesafestpossiblecarLastweekIsawaVolvoadvertisementintheWallStreetJournalthatproclaimedthatVolvomadethesafestcarsintheworld.Giventhisinformation,shouldIbuyaVolvoformynextcar?Ifyes,why.Ifno,whynot?”Theinterviewerwantstoknowhowattunedyouaretothedriversbehindanysis.Anaturalfirstlineofquestioningwouldbetoask,“didthenewspaperadmentionhowtheyhadarrivedatthesafestcarconclusion?”Turnsoutthatinthefineprinttheydescribethestudy.Volvo,ortheNationalTransportationSafetyBoard,ortheNationalHighwayAdministration,orsomeoneelsewhomightcareaboutthisstuffusedmotorvehicleregistrationstodeterminetheactivefleetsizeofeachmakeofcarintheUnitedStates.Thentheycompileddataonthenumbersofseriousinjuriesanddeathsthatoccurredontheroadsforthepreviousyearinwhichmakeofcar.Bydividingthenumbersofcasualtiesanddeathsbythesizeofthefleettheyarrivedataratio.Volvohadthesmallestratio.SoisVolvothesafestcar?Maybe.OrmaybeVolvodriversarethesafestdrivers.OrmaybeallVolvosareregisteredinstateswhereitneversnowsorzesandtheroadsareallsafe.Doestheinterviewerliketodrivedrunk,athighspeeds?Maybeheneedsacarthatperformswellunderthosecircumstances--a,forexample.HavingestablishedthatVolvosarenotnecessarilythesafestcars,theinterviewerthenwantedtoknowhowImightdesignastudytodeterminethesafestcar.IexinedthatI’dwanttoevaluatehisaldrivinghabits.Ifhedrivesmostlyaroundtowninacewhereitsnowsallthetime,thenI’dwanttorunabunchofcarsfullofcrashtestdummiesuptoawallat40mphwithiceontheroadandhitthebrakesatthelastminute. TheD&T Deloitte& WillWolf‘97Myrecollectionoftheactualcaseissketchy.Itinvolvedamanufacturingthatwaslosingprofitability.Makeoneup.ThereasonIincludemynotesherewasbecausetheinterviewerwasnotonlyinterestedinmyabilitytocrackthecase,hewantedtoknowhowIwouldtackletheassignmentasaseniorconsultantatDeloitte&Touche.Thiswasatwopartquestion:howwouldyoucrackthecase,and,howwouldyouproceedasaDeloitte&Toucheconsultant.Tocrackthecaseyou’dwanttolookatrevenueandcostdrivers.AsaD&Tconsultantyouwouldbeginbytapintothenetworkofcontactsyou’vegotwithinthefirm.Whatotherprojectsresemblethisoneandwhoaretheresidentexperts?Etc... Pushvs. Washington,DC WillWolf‘97Ouristhinkingofintegratingintomanufacturingdesktopcomputers.Giventhattheyhavedecidedtoenterthemarketwouldyou mendtheyuseapushstrategyorapullstrategy?Agreatapproachwouldhavebeentomaketwocolumnswithplussesandminusesforeachapproach.Agreathypothesiswouldhavebeen:“GiventhehighcostandquickspoilageofinventoryinthisindustryIwouldmostlikelyadvocateapullstrategy.Dellcomputerdoesthiswithgreatsuccess.Theydon’tmakeacomputeruntilit’ssold.”Thenamethodicalstep throughpushandpullimplicationsonpromotion,channelmanagement,inventorycosts, rrelationshipsandsoonwouldhavestrengthenedmycase.Ididnoneofthesethings. Washington,DC WillWolf‘97Ourisoneofthreeyersinacommodityindustry.Therearesixmanufacturingntsoperatinginthisindustry.Twobelongtoour,twoeachbelongtotheotheryers.Oneofour’sntsisprofitable,oneisnot.Bothareoperatingatbetterthan80percentcapacity.Oftheotherntsintheindustry,allbutoneareprofitable.Withouttryingto“crack”thecase--nocompetitiveysisnecessary--lmewhatyouthinkourmightdotoincreaseprofitability.Knowingwhatweknowaboutcommodityindustries,weshould thatunprofitablentsmeanstoomuchmanufacturingcapacity.Wecannotcontroltheother ntsbutwecancontrolourown.Iwouldwanttostudythescenarioofshuttingdownourunprofitable ntinconjunctionwithskimmingourmostprofitablecustomersandshiftingthemtotheremainingnt.Thisshouldeliminateourcashsumpwhileraisingthepriceofthecommodity(lowersupplyandsamedemandnowclearatahigherprice).Meanwhilewecanfocusonthemostprofitablecustomersand,asanaddedbonus,wewillhaveantinmothballsasacrediblethreatagainstnewentrantsthinkingofjoiningthefunatanew,higherprice. NewEntryStrategyintotheU.S.TeflonIndustry BostonConsultingGroup ToddRief,KFBS'97 MichaelDeimler November22,YourisaJapanesemanufacturerofafluorosticmaterialthathasuniqueandvaluablecharacteristicsinthemanufactureofothermetalgoods.Thematerial'spropertiesinclude:heat,flame,andwaterretardant,chemically-resistant,non-conducting,bondabletoothermetallicsurfaces,andextremelyslippery.Thematerialistraditionallysolddownstreamtothemanufacturersofothermetallicgoods.Specifically,applicationsfortheproduct,manufacturedinslightlydifferentways,fallintothreegeneralMolding-Thematerialisusedasasurfacetoprotecttheunderbellyofcarsandspaceaircraftsfortheautomotiveandaerospaceindustries.Foaming-Inawarmedstate,theproduct"foamsup"aroundtheoutsideofcopperwireandcable.Itthenhardensaroundthewireorcable,formingadurable,protective,outers.Customersofthefoamingproductareinthe municationsindustry.Dispersing-Thematerialissprayedonthesurfaceofpotsandpansandotherindustrialmetallicproductstogivetheproductsaslippery,non-sticksurface.Customersmakemetallicproductsofallvarieties.TheJapanesefirmisconsideringre-entryintothehighlyprofitableU.S.teflonmarket.Infact,ithasalreadycommittedtotheconstructionofamanufacturingfacilityinDecauter,Alabama.Whatshouldthefirm'sbasicmarketentrystrategybe,andhowshouldthefirmbestpositionitsproduct?WhathappenedthefirsttimetheJapanesefirmenteredtheU.S.Thefirmwashitwithaprice-dumsuitbythemarketleader,andafteralengthycourtdispute,wasdtopayheavypenaltiesandwithdrawfromtheU.S.marketfor24months.Nowthatthattimeexpired,thefirmisattemptingre-WhatisthecompetitiveTheindustryleaderisDuPont,theoriginatorofteflon.Theycontrol70%ofthe$600MU.S.market.Therearealsothreesmallernicheyersinthemarket,eachcontrolling10%.WherearethemarketTheintervieweeshouldprobeforhowtheproductdiffersineachofthethreeapplicationareas.Ifheaskstherightquestions,here'swhathewilllearn.Theproducthascertainfinishingandrawmaterialvariationsthatmakeituniquetoeachofthemajorapplicationareas:molding,foaminganddispersing.Furtherwithineachmajorarea,thereareminorcharacteristicsthatdifferentiatetheproducttodifferentcustomers.Uponlingthecandidatethis,apictureofcompetitorpositionsandmarketopportunitiesonanopportunityspacemapwouldbenice.Seebelow.CompCompComp

CustCustCustCustCustUponprobing,thecandidatelearnsthatthemarketissubdividedasRevenueWheredothecompetitorsresideinthispicture?or,WhyisthecontributionhigherforDuPontcompetesinallthreemarkets.Thethreenicheyerscompeteinmoldingordispersing(butnotfoaming).ThereasonisthatonlyDuPonthasperfectedthescienceoffoaminguptheproduct,exceptforourwhocanalsodoso.ThereforeDuPonthasamonopolyyerstatusinthismarket.Hereiswhereourshouldpositionitself.Also,thecandidatemightquestionwhatthestrengthsandweaknessesofDuPontvs.hisare.DuPonthasestablishedrelationshipsandbrandrecognition.Hishasasuperiormanufacturingprocess,andproduct,withperformanceadvantages.ThemarketperceivestheseadvantagesfromthelasttimethewasintheU.S..Thecandidatewouldthuswanttopositionhisproductasaperformanceleader.DiscussionofcostThecandidateshouldattempttothinkabouthowmuchthecancharge,andhowmuchhewillmake.Ifhediscussescoststructures,askhimtohypothesizeaboutwhomightpossessacostadvantage(DuPontorthe).ProbablyDuPonthasafixedcostedgegivenitsestablished,partiallydepreciatednts.ButmighttheJapanesemakethisproductbetter,smarter,cheaper?Candidatecoulddiscussvariablecosts:Labor(aboutequalbetweenourinAlabamaandDuPontinRawmaterials(aboutequalsincetheyareManufacturingcosts(aboutequalsincetheminimumefficientscaleisachievedat10%totalmarketshare)Distributioncosts(nosizeadvantagesforPressthecandidateforhowtheproductshouldbepriced.Shouldtheydiscountprice(moresharegain,butchanceofgettinghitwithanotherpricedumsuit,andalsochancetogetintoalosingpricewarwhichDuPontisbetterabletohandle),mirrorprice(lesssharegain,butlessrisks),orpremiumprice(andchasethehighendniche).Heshouldarrivethatamirrorstrategyisprobablybestsinceyouwilllthemthatthereisnorealjustificationforapremiumprice.Onefinalnote,ifthecandidateasks(andheshould),hewilllearnthatpricediscountsarealwaysmetbyDuPontinitsteflonmarkets,sothelikelihoodofapricewarishighiftheydiscountprice.Note ifcandidateselectsdiscountpricingstrategy,heprobablymissedthe CombatMarketShareErosioninU.S. ephoneManufacturingIndustry BostonConsultingGroup ToddRief,KFBS'97 TomLutz November22,Yourisa municationsequipmentmanufacturerinChicago.Hisproductisbusinessephonesets,forusewithprivatebranchexchange(PBX)switchesandcentrexservice.Thehasacorporategrowthhurdlerateof6%,butyour’sdivisionisonlygrowingat3-4%peryear,andtheindustryisonlygrowingat2%peryear.Whyistheindustrygrowingsoslowly,andwhatshouldourdoaboutit?Afterstrugglingwiththequestionofwhytheindustryisonlygrowing2%peryear,thecandidatewilldeduce(orbetold)thatoldergenerationproductsarebeingboughtupandresoldbyephoneresellers.Theproductsareadvertisedandsolddirectlythrougha municationstrademagazine(calledGear),whichhas60pagesandispublishedmonthly.Thussmallbusinessesaredeferringthepurchaseofnewphonesbyusingveryreliable,feature-richusedephonesetsinstead.WhythegrowthofusedequipmentCandidatecanarriveatsomeoftheseonhisown,orbegivensomeoftherest.Trytolethimstrugglewiththeseforalittlewhile.Basically,Price,deliveryspeed,easysmalltyordering,theslowerevolutionofephonetechnology(asopposedtotheevolutionofPCtechnology),andquality/reliabilityoftheproductareresponsibleforgrowthintheusedmarket.What’sthecompetitiveenvironmentfornewequipmentAT&T,Rolm,andNorarethebigthreegorillas33%shareeach.Assumeourisoneofthethree.Fortheusedequipment,it’smostlysmalloutfits.ShouldIenterthisnewCandidateshouldprobeforanduseallofthisdata.Thenewequipmentmarketforusis$100Minrevenue.Theusedequipmentmarketis$6Minrevenue.Theusedmarketishighlyfragmentedwithnoyerowningmorethan3%marketshare.So,evenifwewereabletograblargeshare(like25%)ofthismarket,that$1.5Minadditionalrevenuewouldnotbelargeenoughtomoveusfrom3-4%peryear(onthetothe6%corporatehurdlerate.Also,enteringthismarketmaycheapenordamageourbrandidentity.Probableanswerthen,isno.Buttheusedmarketisgrowingat30%peryear.So,willenteringthismarketnowhelpuscompeteinitlater.Probably.Targetmarketsfor Twotargets.Firstissmallbusinesseswhoarepricesensitive.Secondissmalltypurchasersinlargerbusinesseswhobuyusedbecauseit’squickandeasy,andit’spricedright.Also,bothsegmentsappreciatequickdeliverytimes.HowdoIfendoffgrowthinthisusedLicensing--ourlawyerstriedandfailedtopreventtheseyersfromsellingourusedChangethestandards–alterthestandardsonournewphonesandswitcheseverycoupleofyearstomakeoldphones patiblewiththem.Thisstrategywouldhurttheusedvendors,butmighttickoffourcustomersaswell.Buybackou