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Expert case by Ian

Based on Bain 1st Round Case (2023): Last Mile Delivery

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< 100 Ratings

Case Prompt

A startup company specializing in last mile delivery with drones is determined to reach $20M in revenue while also becoming profitable. The company's innovation lies in leveraging drone technology to revolutionize the logistics sector, specifically focusing on last-mile delivery, which accounts for a significant portion of shipping costs. However, the firm has to overcome numerous challenges including technological, regulatory, and logistical issues associated with both urban and rural environments.

As the next strategic step, the company is considering pilot launches in two different environments - city and suburb - and is uncertain about which option to choose. You have been engaged to evaluate these options, considering the profitability, revenue potential, and strategic implications of each, and provide a recommendation to the company's leadership team.

Sample Structure

Clarifying Questions and Answers

Question: What specific drone technology is the company using for last mile delivery? 

Answer: The company is using proprietary drone technology, designed specifically for the challenges of last-mile delivery.

Question: What are the company's specific objectives with the pilot launch in terms of metrics or KPIs? 

Answer: The company wants to choose the most profitable option in the long term.

Question: What is the company's financial standing? Will it be able to support the costs associated with the pilot program? 

Answer: The company has secured adequate funding for the pilot program and has plans in place for further fundraising based on the results of the pilot.

Question: Are there any regulatory restrictions or legal issues that the company should be aware of in relation to drone operations in city and suburb environments? 

Answer: The regulations for drone operations can vary by city, state, and country. The company has a legal team in place to handle regulatory compliance, but this is definitely a major consideration in choosing the pilot location.

Part 1 - Brainstorm pricing model options

Part 2 - Market size demand

Part 3: Brainstorm costs for the business

Part 4: Compare costs and revenues

Part 5: Brainstorm cost-cutting options

Part 6: Brainstorm revenue increase options

Part 7: New revenue opportunities:

Final Recommendation

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