Best Buy is approaching Christmas. Sales are down and inventory is rising. There is zero margin on most of their big products like laptops and flat screens.
Meanwhile, a competitor has just declared bankruptcy, so Wal-Mart is their main competitor.
The Geek Squad has become quite successful and brought $1bn in revenue this past year.
What should they do to increase profitability in the short and long term?
Your client is facing a decrease in sales and overabundance of inventory. They need to increase profitability quickly. In this LEK case interview practice, it’s your job to do the research and give your client tangible solutions for raising profitability before Christmas.
Want to prepare for a first round LEK interview? While you can use the Profitability Framework to solve this case study, top candidates blend frameworks with their own business acumen to create a customized framework specific to the case at hand.
This case has no math exhibits. This is an intermediate level case with a qualitative difficulty of 2 out of 4, meaning you would most likely see it in an LEK first round interview
LEK Interview Tips
What does LEK look for in its case interview candidates? An ability to think strategically.
Focus on employing all of your strategic powers to show them what you can do!
In this case study, look for the following:
- Focus on your timing (2min for structure, 5min for math, 2min for brainstorming, 2min for conclusion)
- Make it a point to find one or two opportunities for growth.
For out-loud practice with an expert, book an hour with an ex-MBB coach.
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