Your client is a car insurance company. Its claims processing department is under pressure to reduce costs, because the CEO believes her competitors’ processing cost is less – not necessarily the competitors’ overall payout, but the actual processing itself.
She has contacted you to see how you might help her reduce costs.
What framework would you use to solve this case?
Case Study Overview
In this BCG case study, your client is a car insurance company needing to reduce costs quickly to catch up with their competitors. The CEO has come to you for answers and recommendations for how they can increase profits. It’s your job to dig into profitability and find the missing link along with a solution.
Are you preparing for a first round BCG interview? The Profitability Framework will help you solve this case, but don’t get stuck there. The most sought after candidates take existing frameworks and develop their own structure using their business acumen.
There are no math exhibits in this BCG case study. The qualitative difficulty is 2 out of 4, making this an entry-level case interview typical for a first round BCG interview.
BCG Interview Tips
What does BCG look for in a candidate? Someone who can build a clear structure and has the ability to articulate that structure.
Make sure that your structure is crystal-clear in your mind as you prepare, and that you verbalize each step of the process. Focus on how you arrived at your answer instead of the answer itself.
As you work through this case, time yourself. Spend 2 minutes to build and present your structure, 2 minutes for brainstorming, and 2 minutes for a final recommendation.
Also, focus on identifying one key takeaway that you can work on for next time.
Book an hour with an ex-MBB coach for out-loud case practice with an expert.
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