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Case Study Training Case Practice: World View By PCA Academic Group

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Presentation on theme: "Case Study Training Case Practice: World View By PCA Academic Group"— Presentation transcript:

1 Case Study Training Case Practice: World View By PCA Academic Group

2 Critical Points of the Case
Guide Line Case 1 Critical Points of the Case 2 Use framework to Crack 3 Solution to the Case 4 PCA AG

3 Case Background A cable TV company from Canada, World View, had recently entered the US market in the northeast to expand its market share. World View saw this move as an opportunity to capture a large part of the US market (4MM consumers) in a market with very little competition. PCA AG

4 Question However, in the last couple of years, much to the surprise of management, World View has been unable to make a profit. You have been hired to figure out why and advise them on their next move. PCA AG

5 Critical Points of the Case
Guide Line Case 1 Critical Points of the Case 2 Use framework to Crack 3 Solution to the Case 4 PCA AG

6 Find the Right Track Critical Point Tackle A Framework Make it Detail
Understand why the company is losing money despite the market being uncompetitive Choose the “Profitability” framework & Analyze the revenue and cost side of the problem Go down to the detail of the items & Compare differences between two markets PCA AG

7 Critical Points of the Case
Guide Line Case 1 Critical Points of the Case 2 Use framework to Crack 3 Solution to the Case 4 PCA AG

8 Lay out Your Thoughts Framework Profitability Costs Profit Revenue
Price Volume Consumer Competition Substitutes …… Costs Fixed Costs Variable Framework Profitability PCA AG

9 Core Points of This Case
Competitions Consumer Price Amount Cost Profit Framework PCA AG

10 Digger Deeper Cost Amount Price
Based on the potential number of subscribers, costs are all proportionally the same. Amount Out of the 4 MM potential US customers, only 2.1 MM subscribe the service. Price The fee is $40 a month for each subscriber. 20% of lower income level subscribe the service. PCA AG

11 Consumers & Competitions
Digger Deeper Consumers & Competitions Consumers Canadian consumer doesn’t rely much on local stations but Cable TV. However, in the US, consumers shy away from paying the $40 a month. They settle for watching local stations. Competitions There are not typical competitions. But there are about 16 local stations that cover the northeast. They have good reception, provide program that consumers want, and they are free. PCA AG

12 Critical Points of the Case
Guide Line Case 1 Critical Points of the Case 2 Use framework to Crack 3 Solution to the Case 4 PCA AG

13 Key Findings Great competition: Not from other cable companies, but local TV stations Results: Consumers are not willing to pay $40 for a service that they already can get for free. Consumer: Differences between US and Canada with respect to TV viewing habits. PCA AG

14 Solutions Product Promotion Place
Try to cater its current channel offering by offering a smaller package for those that would be interested in couple of cable channels. Promotion Educate the consumer on the extra benefit. Launch a new low price to promote sales. Place Scale back its operations to a specific region. And if none of these strategies work, move out of that market, and try another new market. PCA AG

15 Click to edit company slogan .
By PCA Academic Group Thank You ! Click to edit company slogan .


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