Save the job of an INSEAD alumnus!
Practice this advanced cost reduction case interview question from BCG in the Technology sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This is a comprehensive turnaround case requiring candidates to integrate financial analysis (profitability tree, margin calculations) with strategic decisions (M&A, divestment, cost-cutting). The case tests both quantitative rigor and strategic boldness, with the interviewer guide emphasizing that great candidates must present multiple options with clear trade-offs and implementation considerations rather than a single recommendation.
Estimated Time
36 minutes
Difficulty
Hard
Source
ICC
50
/ 100
The client “Techking” is a 5bn€ multi-national IT provider based in Germany that provides technology and related consulting services to clients from a variety of industries. Revenues have been next to stagnant for years and profit margins compared to competitors is low. The CEO – an INSEAD alumnus - has asked you to come up with options on how to turnaround their business and improve profit margins. He advised you that all previous Consulting companies were “not bold enough” and this is the time for some “big changes” as he otherwise will lose his job.
Clarifying Information
- Client’s offerings includes a wide range of technologies incl. provision of computing power of their data centers, hardware for employees (e.g. laptops) and Software and Consulting
- Client operates all over the world, but focus is Europe
- Client has already executed several smaller initiatives to cut down costs, but impact was minimal
- Client targets at least 15% profitability in 3 years latest and would take a cut on revenue if necessary – current profitability has to be calculated by candidate later
- Profit margins of competitors are between 15% and 25%
- Client is open to M&A activities