Compress and Expand
Practice this intermediate profitability case interview question in the Manufacturing sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This is an interviewee-led case focused on revenue growth through product portfolio expansion. The case tests the candidate's ability to analyze exhibit data, prioritize opportunities based on capabilities and impact, and develop a phased implementation strategy. The structured approach moves from quick wins (upgrades with existing capabilities generating $72M) to strategic investments (high-impact upgrades requiring capability building generating $164M), ultimately capturing 84% of total revenue potential.
Clarifying Information
- Geography - The client is a US-based company with $1 Bn sales but sells to clients all over the world. Turnaround time from receipt of orders to delivery of the compressors is ~1.5 years.
- Product - Gas Compressors are huge equipment (size of football field) that are used to compress air and generate high pressures required in the refineries and steel plants. These generally have a life of 10-20 years when maintained regularly.
- Business - The client, Compressor Co. earns revenues from selling gas compressors for large-scale refineries or steel plant projects across the world. Maintenance of their compressors is currently handled by third party players that are locally stationed.
- Timeline - The client is looking at both short-term as well as long-term recommendations.