S1E15: Bain-Style Case Interview Walkthrough
Strategy Simplified
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How to Cut Fixed Costs?
I would recommend finding some ways to cut our fixed costs. We need to absorb about 14 million dollars in costs in order to maintain our profitability of $112 million per year. It does not look like pricing strategies would be as effective as cost-based strategies since our competitor is relatively close to us. I would like us to, in terms of next steps, think about what the competitive response would be if they would change their cost structure and capture more market share.
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