Case Study Training

1. Case Study Training By PCA Academic Group Case Practice: World View

2. 1 2 3 4 Case Critical Points of the Case Use framework to Crack Solution to the Case Guide Line √ PCA AG

3. Case Background • A cable TV company from Canada, World View, had recently entered the US market in the northeast to expand its market share. • World View saw this move as an opportunity to capture a large part of the US market (4MM consumers) in a market with very little competition. PCA AG

4. Question • However, in the last couple of years, much to the surprise of management, World View has been unable to make a profit. • You have been hired to figure out why and advise them on their next move. PCA AG

5. 1 2 3 4 Case Critical Points of the Case Use framework to Crack Solution to the Case Guide Line √ PCA AG

6. Find the Right Track Critical Point Tackle A Framework Make it Detail Understand why the company is losing money despite the market being uncompetitive Choose the “Profitability” framework & Analyze the revenue and cost side of the problem Go down to the detail of the items & Compare differences between two markets PCA AG

7. 1 2 3 4 Case Critical Points of the Case Use framework to Crack Solution to the Case Guide Line √ PCA AG

8. Framework • Revenue • Price • Volume • Consumer • Competition • Substitutes • …… • Costs • Fixed Costs • Variable • Cost • …… Profit Revenue Cost Profitability Lay out Your Thoughts PCA AG

9. Framework Consumer Price Profit Competitions Amount Cost Core Points of This Case PCA AG

10. Cost Amount Price Based on the potential number of subscribers, costs are all proportionally the same. Out of the 4 MM potential US customers, only 2.1 MM subscribe the service. The fee is $40 a month for each subscriber. 20% of lower income level subscribe the service. Digger Deeper PCA AG

11. Digger Deeper Consumers & Competitions Consumers Canadian consumer doesn’t rely much on local stations but Cable TV. However, in the US, consumers shy away from paying the $40 a month. They settle for watching local stations. Competitions There are not typical competitions. But there are about 16 local stations that cover the northeast. They have good reception, provide program that consumers want, and they are free. PCA AG

12. 1 2 3 4 Case Critical Points of the Case Use framework to Crack Solution to the Case Guide Line √ PCA AG

13. Key Findings Great competition: Not from other cable companies, but local TV stations Results: Consumers are not willing to pay $40 for a service that they already can get for free. Consumer: Differences between US and Canada with respect to TV viewing habits. PCA AG

14. Try to cater its current channel offering by offering a smaller package for those that would be interested in couple of cable channels. Product Educate the consumer on the extra benefit. Launch a new low price to promote sales. Promotion Scale back its operations to a specific region. And if none of these strategies work, move out of that market, and try another new market. Place Solutions PCA AG

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