Case Study Training Case Practice World View By
Case Study Training Case Practice: World View By PCA Academic Group 2007. 04. 22
PCA Guide Line √ 1 Case 2 Critical Points of the Case 3 Use framework to Crack 4 Solution to the Case PCA AG
PCA 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 (4 MM consumers) in a market with very little competition. PCA AG
PCA 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
PCA Guide Line √ 1 Case 2 Critical Points of the Case 3 Use framework to Crack 4 Solution to the Case PCA AG
PCA 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
PCA Guide Line √ 1 Case 2 Critical Points of the Case 3 Use framework to Crack 4 Solution to the Case PCA AG
PCA Lay out Your Thoughts Framework Revenue Price • Volume • Consumer • Competition • Substitutes • …… • Costs Profit Revenue • • • Fixed Costs Variable Cost …… Cost Profitability PCA AG
PCA Core Points of This Case Framework Consumer Competitions Price Profit Amount Cost PCA AG
PCA Digger Deeper Cost Amount Price Based on the potential number of subscribers, costs are all proportionally the same. Out of the 4 MM potential US customers, only 2. 1 MM subscribe the service. The fee is $40 a month for each subscriber. 20% of lower income level subscribe the service. PCA AG
PCA Digger Deeper Consumers & Competitions Consumers Competitions 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. There are not typical competitions. But there about 16 local stations that cover the northeast. They have good reception, provide program that consumers want, and they are free. PCA AG
PCA Guide Line √ 1 Case 2 Critical Points of the Case 3 Use framework to Crack 4 Solution to the Case PCA AG
PCA Key Findings Great competition: Not from other cable companies, but local TV stations Consumer: Differences between US and Canada with respect to TV viewing habits. Results: Consumers are not willing to pay $40 for a service that they already can get for free. PCA AG
PCA Solutions Product Try to cater its current channel offering by offering a smaller package for those that would be interested in couple of cable channels. Promotion Place Educate the consumer on the extra benefit. Launch a new low price to promote sales. 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
By PCA Academic Group Click to edit company slogan. 2007. 04. 22
- Slides: 15