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Easy Profitability

Finding the Right Key

#Consumer Electronics #Manufacturing
ProHub Comment

This is a beginner-level profitability case designed to teach candidates basic frameworks. The case progresses logically from defining profitability factors, through market sizing, to strategic decision-making between two equally attractive options that differ only in qualitative factors like market growth and volatility.

Estimated Time 15 minutes
Difficulty Easy
Source Bauer
50 / 100
Your client, Keyboard Co., is an American mechanical keyboard manufacturer who is seeing declining profitability recently and does not understand why - they hired you to help them identify why their profits may be down and to help them reverse the trend.

Clarifying Information

  1. Client has seen declining profitability last four years.
  2. Competitors are seeing mixed results - some are up, some are down and some are stagnant.
  3. Client only sells keyboards in the U.S.
  4. Client mainly sells to big box retailers like Target, Best Buy, etc.
  5. Can ignore pandemic - last four years should be assumed as normal business operations