Wait for the interviewee to ask questions regarding the background of the case. A few sample questions/topics are shown below. You could use them to help the interviewee with information if he's stuck.
1. Industry and Market Share
The firm's market share has fallen from 25% to 16%
The market has been growing
The industry has not seen any major merger or acquisition
Our competitors are premium retailers in the same segment. Recently we have started facing competition from mid-range brands as well.
There has been no change in cost structure or margins.
We distribute our products through large retail outlets that stock multiple products (80%) and self-owned outlets (20%). We do not have any online sales channel
A lot of our distributors have recently started their own premium apparel brands
5. Marketing and Sales
Prices have not changed
Our marketing mix has remained unchanged.
Competitor's prices, marketing mix, etc. have also not changed
It can be seen that the company does not have many distribution channels. 80% of the distribution is through large retail outlets that stock multiple products. Now since these outlets have launched their own brands, they must be pushing the sales of their own products over firms' as they earn a higher margin on their own products rather than the firms' products. Our market share is declining as they have control over the shelf space.
To reverse this trend, the firm should consider diversifying its distribution channels.
The firm could open up more self-owned stores
The firm could also consider the creation of an online store
Since the customer's recognition of the brand is low, the company should also work on a branding program to strengthen the customer pull.
The Blue Ocean Strategy advocates for the generation and seizure of new demand in untapped or uncontested market spaces. Learn how to apply it in our basics!
Cookie and Privacy Settings
Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. a GDPR, to your data being processed in the USA. The USA is not considered to have adequate data protection legislation. If you need more information please view the individual settings.