Wireless carrier wants to evaluate success of device functionality workshops offered in select stores and decide on nationwide rollout. Candidates must build an evaluation framework, analyze profitability drivers (especially accessory sales), and make a data-backed recommendation on expansion despite initial cost concerns.
Key Insights:
- Success frameworks should consider multiple dimensions: shareholder returns, profitability, customer metrics, and value chain effects
- Critical profitability drivers for workshops include device sales, accessory sales, data plan usage, and customer lifetime value improvements
- Quantitative analysis revealed $41.2M annual accessory revenue from 20 stores against $45M costs appears negative, but considering other profit drivers (device sales, data plans, customer retention) makes positive case for expansion
- Nationwide rollout strategy should be tailored: identify popular workshops by device type, launch in geographically/demographically similar markets first, and secure manufacturer incentives
- This case teaches the importance of not fixating on single metrics and remembering to triangulate decisions across multiple business drivers