Solution of this case says to reduce the pricing and then admits that this will lower the margin but gain the market share. however, one of the goals of this gase is to increase margin and the share not one or the other I believe.
(edited)
Hi,
You are right, but it's not always possible to find a solution that satisfies every client's request.
In this case, after your analyses, the interviewer can ask you to present your findings: that lowering price will make our client to gain market share.
Usually the interviewer will then ask you to quickly brainstorm possible alternatives/solution to also increase the margins.
Hope it helps,
Luca
If factories are operating at full capacity (quantity produced can't be increased without significant investments), shouldn't price reductions lead to both decreasing revenues (same quantity x lower prices) and lower profit margins? In that case, the proposed solution doesn't solve any of the objectives of the case, since we know that the Argentinian market is growing by 10%, right? — Kasper on Oct 21, 2020
Pricing case studies can either stand alone or be a part of another case study. You can crack pricing Case Interview in three steps: Investigate the company; Investigate the product; Choose a pricing strategy
The case study is the most important element of the case interview, which you'll have to nail in order to get into strategic consulting. Here you can learn the specific skills and concepts necessary to solve them.
1 Q&AIn order to repeatedly demonstrate prerequisite skills under the pressure of a real case interview, you need to learn the basics and practice cases.
1 Q&AAs a consultant at Mercedes-Benz Management Consulting, you are actively shaping the future of mobility. While you are contributing to decisive projects that design the future of the world’s No.1 premium carmaker, you also develop your own career path and you have the unique possibility to build you ... Open whole case
Dein Klient ist ein spezialisierter Lösungsanbieter für komplexe Leichtbaugruppen aus Metall für die Automobil-, Luft- und Raumfahrtindustrie. Im vergangenen Jahr wurde erstmals ein negatives Betriebsergebnis erwirtschaftet. Die Geschäftsführung beauftragt Dich, ein realistisches Zielbild für Phoen ... Open whole case
Ihr Kunde ist in einem globalen Automobilkonzern dafür verantwortlich ein neues Produkt mit einem Volumen von 140.000 Fahrzeugen über den gesamten Produktionszeitraum auf den Markt zu bringen. Bedingt durch finanzielle Anspannung liegt ein besonderer Fokus auf den Kosten. Open whole case
Cruise company German Sea Tours (GST) is a successful operator of international cruises. GST currently offers several cruise trips, lasting between 5 and 24 days. Additional services can be booked on board (e.g. excursions at each destination, onboard leisure activities). Customers tend to book thei ... Open whole case
Your client, Customlope, is the leader in the US secure envelope manufacturing industry. Banks buy these envelopes for operations such as money deposits and high value transactions. Next year, a new digital technology will reduce the overall number of units sold in the industry by 25%. In the shor ... Open whole case
Case in Point: The Perfect Preparation for the Case Interview in Consulting 
CoachingPlus 5 
