Sprinker

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Style:
Candidate-led (usual style)
Topics:
Market entry , Market sizing , Profitability analysis
Sprinker Sprinker
3.9 5 3870
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Problem Definition

Your client is Sprinker, a mid-size publishing agency in the US. Their main products are educational materials. There is a rumor that some private schools are going to change their first-grade textbooks. If the rumor is true, they need a publishing agency.

The client wants you to analyse whether they should offer their services.

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Question on the case: Sprinker

Choosing Writer I over Writer III

Sprinker
Most recent answer on Jul 17, 2021
<p>I am very confused as to why choosing writer I over Writer III would make any sense.</p> <p>The breakeven from where on writer I will be cheaper than Writer III is at 1'500'000 books.<br> The TAM is only 1'000'000. Even when considering population growth it doesnt make sense. <br> There is 50% market missing and also that only works when 100% of the market is captured.</p> <p>Long-term contract binding is not sufficient in my opinion to chose a writer 100k more expensive to hope to one day grow the market by 50% while simultaneously capturing 100% of it.</p>
Hi Richard, That's a fair take. You could propose this in an interview and, if you can defend your reasoning that's perfectly fine! i haven't look at the exact math of this case, but your logic is sound.
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