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profitability-30%~40% decreasing (Clarifying (Look the period when the…
profitability-30%~40% decreasing
Clarifying
Look the period when the company were profitable, and tell the interviewers why you want to know. 1. scope of challenge 2. inflection points
Look at revenue and costs individually to see if there's the same trends on revenue and cost
I’d like to understand where the revenue is coming from today. Do we have any more detailed data on that?
Revenue
by product
is this something that’s happening industry wide or is this something that is specific to our business?
when you get a piece of numerical information, always
asking for historical data for that same number, as well as comparing that number to other competitors.
We would want to look at the types of businesses that we typically sell to and look at the rate that they have been opening over the past year.
The number of what we call new retail store openings has fallen about 90 percent.
Cost
Synthesis
So now the problem is we have to really get to the root cause of why the revenues are down. We need to take a closer look at
what comprises this business
, what are the sectors and what are
the biggest segments
of his business and how are each of them
growing
over the past year.
transitioning from one part of the framework to another or from one framework to another. Those are very good times to synthesize and to refine your hypothesis
well based on data we have, it looks like that both of our product streams are in shrinking businesses. In order to return this business to profitability we’ll either need to find a way to cut our costs in order to stay profitable, or we’re going to need to find new revenue streams in order to grow our business. So in order to do that we would want to perhaps take a look at, now that we’ve isolated the problem, that we need to either find new products or look at costs – we’ve already looked at costs, they’re down – so perhaps the next logical thing to look at is what other products could this business sell in order to become profitable?
Hypo
Get data and interpret it. Spending less or any others.
In order to confirm this hypothesis, the data we would need is to look at: are plastic vinyl banners now being used in place of where people were previously using illuminated signs?
while it’s encouraging that this is a growth business, that there is a revenue stream that is picking up where their other business is failing, this doesn’t seem like in the long term that this is going to lead to a profitable business in sign making.
the conclusion was that perhaps you could sell more signs to companies that are going out of business, but perhaps this is not a good opportunity because eventually all the businesses are going to go out of business and they won’t be any left. Now that is factually true, but there is a question of time frame. How fast are the businesses going out of business and how many will be left?
better to have
And the other question is what are the competitors doing, right? And if you had asked I would have said the competitors are ignoring it entirely. So, that’s another thing to question.
market sizing
by population
size
quantity
Category(High/Medium/Low)