S1E15: Bain-Style Case Interview Walkthrough
Strategy Simplified
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Is It a Good Idea to Cut Prices?
Our client has a different instinct and it'll be your job to advise them on whether that's a good one or not. Our total cost for the client is $1.20 per needle. Our competitor outsources manufacturing for a total cost of $1.40 per needle. So what do you think? What do we want? One way to go about it is to capture or to obliterate the competitor by lowering our prices to their cost. That would be one strategy. I would like to consider it next if we can squeeze the market in some way. Maybe there's an efficient way of riding on the supply demand curve that we don't cut the price that much, that we can
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