Since this is a candidate-led case, the candidate should drive the case from start to finish.
This is a classic example of a substitute product disrupting a well-established industry.
Competitors often react strongly to such products by utilizing strategies such as price wars.
To simplify the case, we will assume there is only ONE type of envelope in the market and that all the current manufacturers sell it for $1 per envelope.
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 short term, our client wants to maintain his current profit level without investing in the new technology.
How can you help him?
More questions to be added by you, interviewer!
If the interviewee solves the case very quickly, you can come up with more challenging questions to ask them.