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Medium New Product

Insta-Famous

#Social Media
ProHub Comment

This case tests optimization and cannibalization concepts by requiring candidates to evaluate multiple product/service options across financial, operational, and time-constraint dimensions. The core analytical skill involves calculating profit-per-hour metrics to identify the optimal portfolio mix that meets Katherine's profitability and time constraints while minimizing negative impacts on her existing social media revenue.

Estimated Time 15 minutes
Difficulty Medium
Source Columbia
50 / 100
Katherine Isaacs is a fitness-focused influencer on several major social media platforms. She posts videos about her workouts, and these videos garner hundreds of thousands of views. While she is excited about her current reach and the steady income she receives from the social media sites, she is considering launching her own app. You have been brought in by her team to help think through whether she should launch an app or just stay with the social media sites.

Clarifying Information

  1. What are her goals? She would like to generate $30M in additional, annual profits without spending more than 20 hours of her time per week on the app
  2. What would be on the app? She is open to many ideas and is looking to you for guidance
  3. How does she make money now? She gets paid by the social media sites for driving traffic and she gets paid from companies for products for which she directly advertises for in her videos and posts
  4. How much money does she make now? She makes $5M in Social Media profits now