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Company case by Bain & Company
Bain Case: BeautyCo – Where Did the Profits Go?
26.0k
Times solved
Intermediate
Difficulty
Our client BeautyCo is a large European perfumery company with 500 shops across Europe. However, BeautyCo has been struggling with a decrease in 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: What is BeautyCo’s current Gross and Operating Profit Margin?
Question 2.1: How does Amazon sell at lower prices?
Question 3: How big is the grey market in Germany?
Question 4: What can BeautyCo do to increase its own competitiveness?
26.0k
Times solved
Intermediate
Difficulty
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