Case Question

Welcome to your Case Quiz 1

Your client, LiveBetter is a pharmaceutical company that has developed an anti-tobacco drug. Live Better will have to compete with No Tobacco, an established product working in the similar domain. They have reached out to you to price this drug. Which of the following options would you choose to start with your approach?

The price needs to be competitive. Therefore, first understanding the market and competitors and then recommending a price for LiveBetter

The pricing of any product, including drugs, can be based on various criteria such as economic value to the customer. Therefore, firstly knowing more about the customers and the product before deciding the pricing mechanism to use.

The price of the drug needs to cover up the costs and ensure a profit margin. Therefore, the price should be set accordingly.

Setting up the price on the basis of the value among customers of this drug.

The following are major 4 aspects that are analysed in M&A cases. 'Analysing how available and strong are substitutes' comes under which aspect?

Market Attractiveness

Company Attractiveness

Synergies

Financial Implications

What is the right order to approach a growth case? i) Clarifying the target no. to be achieved ii) Analysis on the basis of various factors such as cost, ease, differentiating factor iii) Understanding the motive to grow iv) Selecting the optimum opportunity v) Dividing the ways to grow into various core business and outside core business ways

i) ii) iii) iv) v)

iii) i) v) ii) iv)

iii) i v) iv) ii)

v) i) iii) ii) iv)

A movie theatre owner in Mumbai is facing declining revenues from the past few months.

Given below are some random stages of the entire approach the consultant takes to analyse the problem. Rearrange them to the best order.

i) Understanding if it's an industry wide or company specific issue
ii) Looking at Supply and Demand Constraints.
iii) Understanding revenue streams the changes in offerings, if any and
iv) Splitting revenues into revenue/customer and no. of customers
v) Clarifying about market and company

i) iv) iii) v) ii)

v) ii) iii) iv) i)

i) v) iii) iv) ii)

v) ii) i) iv) iii)

Your client, a coffee seller in Delhi, is facing declining profits from the past 3 years. You were hired as a consultant to analyse the situation. You found out that in spite of an increase in the number of customers, the profits were declining. How can an increase in customers lead to a decrease in profits? What would you like to examine to understand the reason?

Competitors' Landscape

Fixed Costs

Variable Costs

Revenue streams and corresponding costs

How do you start solving any Market Entry case?

Analysing the competitors' landscape

Analysing the products

Understanding the motive to enter

Understanding the geographical location

Your client is a low-cost airline operator in India. Over the past 1 or 2 years, it has been burning cash. You have been appointed to find the cause and recommend solutions. What would be your first step?

Analysing profits by using the equation Profits = Revenue - Cost

Understanding the measures taken till now to solve the issue

Asking the kind of flights the company runs.

Analysing the competition the client is facing

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