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Our client is a large manufacturer of explosive products. Recently, their largest customer, a mining company, has called for a competitive bid for their next 3 year contract. Previously, we have been their preferred provider and have run uncontested.
Our client wants to know how we should price the bid.
Our client provides three products:
- Ammonium nitrate (AN) which is used to create the explosion
- Ignition systems (IS) used to start the explosion
- Slot services which are contracting services designed to help clients understand where to place explosives.
We are not sure why the bid was put out for RFP but suspect it could be internal cost pressures.
How would you structure your approach?
In this case from the BCG case library, the client is an explosives manufacturer that has hired to hep advise it on how to price a competitive bid for a repeat customer. The client suspects the RFP is due to internal cost pressures.
Prepping for a second round BCG interview? We recommend using the Profitability Framework to solve the case. Allow yourself to work outside the framework by picking and choosing from parts of the other basic frameworks in order to create a custom framework that will most effectively solve the problem in the case.
This is an intermediate difficulty case study you would likely see in BCG second round. There are no math exhibits in the case.
Interview Tips: BCG
What does BCG prize in its case interview candidates? Structure pros and clear communicators.
In this BCG case study, focus on 2 things:
- Creating a structure with MECE buckets
- Over-communication of the structure (this is especially critical in a virtual interview environment)
For additional structure assistance with an ex-MBB consultant, book an hour of out-loud practice time.
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