ShipTech, a ground transportation company, faces declining revenue despite available market demand. Through structured analysis, candidates discover that poor driver compensation and benefits compared to competitors create a retention crisis that prevents ShipTech from capturing $600M in available sales. The solution requires investing in driver compensation to meet industry standards, requiring approximately 1,380 new hires to achieve the $100M revenue target.
Key Insights:
- Gap analysis between potential and actual sales ($600M) reveals a capacity problem, not a market problem
- Root cause analysis points to driver hiring and retention as the key constraint
- Compensation is the primary driver value proposition (45% vs 20% for health benefits), not manager quality or location
- ShipTech significantly underperforms competitors on compensation, health benefits, and PTO
- Financial modeling shows that increasing compensation to industry standard requires hiring ~1,380 drivers to maintain unit economics