Hello together,
I recently reveived a case prompt about the profitability decline of an aircraft manufacturer and the question was where the issue is and in the later stage how to tackle the issue.
I asked the clarification question, whether other aircraft manufacturers experience the same or whether this is an issue only for the manufacturer we are looking at. The answer was that this is a good aspect and we can have a look on this in the case itself.
So I decided to create the following structure (only high level elements for illustrative purposes).
Market for aircraft manufacturers
- Revenue and profitability development
- Market trends / growth…
Company
- Customer segments
- Marketing strategy
- Distribution strategy
Profitability
- Revenue (Sold planes, Price per plane…)
- Costs (Personnel, Overhead…)
Profitability enhancement measures
As you see in my structure, I added the market and company itself to first understand the market development and the company perspective so analyse the way of sales and marketing in particular. Then my focus was to deep dive into the profitability issue tree. However, this approach was a mistake since I should have entered directly with the profitability issue tree.
Therefore, my question: How do deal with profitability cases where information about the market is not provided at the very beginning and we someone need to integrate this in the structure?
Looking forward for the discussion.
Best