After the expansion of eCommerce on the French market has been evaluated as attractive, the candidate should now work out which areas of the company have to be adapted due to the new strategy. The following areas should be mentioned and their contribution to the success of the implementation explained:
- Marketing/Sales: Focus of advertising campaigns on eCommerce business
- IT: Expansion of the online shop (security, stability, functions) and data collection
- Logistics: Adjust capacity of logistics centers to increased demand (alternative: outsourcing)
- Operations: Expansion of production volume to meet increased demand
A very good candidate will also bring one of the following areas to the table:
- Product management: Analysis of the collected customer data and development of specialized offers
- Controlling: Risks of non-payment (e.g. payment on Invoice) taken into account
- Management: Closure of shops due to decline in demand in traditional shops
The applicant should be aware of the risks, such as the congestion of production sites.
After the implementation plan could be outlined, it comes to the final recommendation of solving the case study. For this, the candidate should convince the CEO, whom he meets in the elevator, of his results in three sentences.
Above all, make sure that the applicant presents their results in short, concise sentences. The applicant should first recommend expanding the eCommerce business in France, as this is where the greatest additional earnings potential is available at around 168 million euros. He should then back up his statement with further arguments. The relatively low conversion rate in 2018 and the market size can be cited here. Finally, he should point out that a rough implementation plan has already been drawn up with the departments concerned.
A good candidate should structure this case into 3 phases.
The aim of the first phase is to identify an attractive growth field and relevant factors for a successful growth strategy. Structurally, it is advisable to separate these into qualitative and quantitative types as well as internal and external factors. If the candidate states the essential points, the necessary data will be provided.
The second phase focuses on the analysis of the data and subsequent quantification of the earnings potential. The candidate is told that the strategy's target is to expand online trading in only one country for the time being. The candidate is then asked to identify the country he/she thinks is the most attractive for this project and to determine the additional revenue potential.
Finally, in the third phase, the candidate is asked to estimate the impact of the developed strategy on different departments of the company and to define measures for the successful implementation.
Following the solution of the case the candidate is asked to communicate his/her recommendation
in three sentences to the CEO - whom he happens to meet in the elevator.