Company case by Bain & Company

Bain Case: BeautyCo – Where Did the Profits Go?

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Case Prompt

Our client BeautyCo is a large European perfumery company with over 1,000 shops across Europe. However, BeautyCo has been struggling with declining profitability for some time and would like to work with us to understand what the causes and possible actions could be. Therefore, as a first step the client wants us to identify the cause of the profitability issues.

Short Solution

Question 1: What could be the drivers of declining profitability at BeautyCo?

Question 1.1: Where do the profitability problems of BeautyCo stem from?

Question 1.2: Which effect does the market environment have on BeautyCo's declining profits?

Question 1.3: Why are customers more likely to buy from Amazon & other online players than from BeautyCo?

Question 2: Why can other competitors offer lower prices?

Question 2.1: How does Amazon manage to get its purchase prices?

Question 3: How big is the grey market in Germany?

Question 4: What can BeautyCo do to increase its own competitiveness?

2.4k
Times solved
Beginner
Difficulty
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