This is a disguised profitability case presented as a digital transformation challenge. The candidate must evaluate four distinct digital initiatives (e-commerce, loyalty program, social media tools, and hardware/phones) against financial and strategic criteria, then recommend specific solutions and a geographic pilot market.
Bonnie and Blithe is an international direct selling beauty company. B&B is known for the high quality and value of their beauty products, primarily skincare and makeup. The firm operates in 20 countries and has 1 million sales reps that sell B&B’s products directly to consumers.
Last year, the company made $1.4 billion in revenue. Due to changing customer preferences, including an increased interest in digital technology and a decreased preference for face-to-face interactions, B&B’s sales decreased by 7%.
The firm is considering several options to increase profitability moving forward through a digital transformation.
How would you evaluate Bonnie and Blythe’s options?