McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Book a coaching

How to increase market share/raise revenues without cost-cutting

Anonymous A

Good evening,

I am asking how to increase market share and how to raise revenues without costcutting..

What are the best frameworks for cases like this and what strategies do you recommend? Espacially in terms of pricing and marketing..

Thank you !! :-)

Vlad replied on 06/06/2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi!

First of all - increasing the revenues is not related to cost-cutting. You may take / not take into account cost-cutting if you want to increase the profits. In that case, you have to levers - growing revenues and cost-cutting.

The framework depends on the part of the case where you have this question:

If it is the main objective of the case, I will build the structure depending on this objective. In some cases ("Growth strategy") I will use a broad structure (see below), in others (e.g. “how to increase the excessive luggage revenues for an Airline”) I will use P, Q and the Process.

Here is the broad structure that you can adapt to your industry:

Analyze the market:

  • Size and growth rates
  • Segments (geographical, customer, product)
  • Distributors / Suppliers
  • Regulation
  • Key market trends

Analyze the competitors:

  • Market shares, growth rates, profits
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

Analyze our company:

  • Market share, growth rates, profit
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

How to increase revenues:

  • How to increase the scope: Product / customer scope, geographical scope
  • How to improve value proposition (How to fix your weaknesses and improve your strengths; Potential increase in price and volumes)
  • How to answer the competitors (Unique or hard to build property and contracts; Customers / suppliers / complements with lock-in; Reputation and relationships; Organizational capabilities; Product features and know-how)
  • Other benefits of scale (Spreading Fixed costs, Change in technology, Bragaining power)

If it is the questions on creativity in the middle of the case I would use the following framework:

Organic growth

  • Vertical integration
  • Horizontal integration

Non-organic growth

  • Existing product (Value proposition, price, volume)
  • New markets
  • New products

Best!

(edited)

Related case(s)

OnlineGo

Solved 8.3k times
4.5 5 260
| Rating: (4.5 / 5.0)

The client, OnlineGo, is a European Internet Service Provider (ISP) that is contemplating entering the North American market. Currently, they hold a dominant position in the European market with two streams of income; a subscription fee and taking a percentage of all e-commerce transactions done by ... Open whole case

Toothbrush disruption

Solved 6.0k times
4.6 5 790
| Rating: (4.6 / 5.0)

We are a global toothbrush producing company. Our portfolio consists of two kinds of toothbrushes - 'manual' that sells for $5 and an electric 'rechargeable' that sells for $60. Last year, a competitor introduced a battery-powered electric “spinbrush” that sells for $8.5 and now has ... Open whole case

Premium Brand Apparel Retailer

Solved 3.7k times
4.5 5 308
| Rating: (4.5 / 5.0)

We are a premium brand apparel retailer facing a consistent decrease in market share. We would like you to figure out why this is happening and provide recommendations to reverse this trend. Open whole case