McKinsey Medium Profitability

Contact Lenses

ProHub Comment

This is a structured profitability case that requires candidates to isolate the revenue driver (channel distribution) through process of elimination. The case tests both quantitative analysis (profitability calculations by channel) and strategic thinking (resource reallocation), culminating in an optimization problem around sales rep call frequency. The interviewer-driven format allows flexibility in candidate approach while maintaining focus on the core insight.

Estimated Time 15 minutes
Difficulty Medium
Source Chicago Booth
50 / 100

Your client is a well-known contact lens provider called BB. BB manufactures and distributes contact lenses in the U.S. While BB is one of the largest players in the U.S. market, and has been for quite some time, the company feels that compared to its main competitor, it is not doing as well as it could.

BB has called in McKinsey to find out how to solve this problem and to recommend a solution.

How would you go about structuring this case?

Clarifying Information

  1. For the scope of this case, BB manufactures and distributes only in the U.S.
  2. Demand for contact lenses has been growing steadily at about 3% annually
  3. The client and its main competitor each sell about 10 Million contacts per year
  4. The industry has high barriers to entry (since a high R&D outlay is necessary), is mature (20 years plus), and is dominated by BB and its competitor, who are equal in most areas.