Fashion mail order

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Style:
Candidate-led (usual style)
Topics:
Growth strategy , Market analysis , Profitability analysis
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Problem Definition

Your client is a direct mail clothing retailer. They primarily sell clothes through their product catalog. Next year, postage costs will increase to 40 cents per catalog. Your client wants to know whether his current business model is still profitable.

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Question on the case: Fashion mail order

why did you take the per catalogie route

Fashion mail order
Most recent answer on Feb 29, 2020
The best answer (on Feb 29, 2020) is from:
Luca
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BCG |NASA |20+ interviews with 100% success rate| 120+ students coached |GMAT expert 780/800 score
Luca
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Content Creator
 gave the best answer on Feb 29, 2020
BCG |NASA |20+ interviews with 100% success rate| 120+ students coached |GMAT expert 780/800 score
Hello Vaibhav, You are right, to address the problem you can consider the total revenues and costs. Anyway, in order to answer any additional question about the business, it's important to understand and split the dif ... (read entire answer)
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Exhibits

Case Structure

Revenue estimation tree

Assumption:

The average repeat order price (some customers buy more than once from the retailer) is the same as the average price of the initial orders.

Clothing Retailer's Revenue

*Orders received within 2 weeks of sending the catalog are counted as initial orders.

2x2 Matrix

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