Are you looking for case interview practice cases to help you get ready for your next interview? Dive into this Profitability case prompt to get started!
A newspaper company (Daily News) in suburban New York has a subsidiary in New York City. The newspaper company is very profitable, it has number 1 market share (80% share).
The subsidiary is losing a lot of money. The subsidiary’s costs are not increasing. Revenues are not decreasing. The subsidiary is only two years old. Target segment is lower to middle income families. Market share is 10%. Revenue drivers are subscriptions and advertising. The breakdown is 50% / 50%.
What is the value of this subsidiary?
Case Study Overview
In this Strategy& case interview practice case, the client is a newspaper company with a subsidiary that’s losing money fast. You have been called in to determine the value of the subsidiary and help your client with a winning strategy moving forward. It’s your job to dive deep into the profitability to get to the root of the problem and give your client a sound recommendation.
The Profitability Framework is a great starting place for solving this case problem, but the best case interview candidates blend frameworks in order to create a custom framework tailored to the unique features of each case.
This case interview practice case doesn’t have any math diagrams. This is a beginner-level case interview you could expect to see in a Strategy& first round with a qualitative difficulty of 2 out of 4.
Interview Tips: Strategy&
Strategy& is looking for candidates who know how to creatively solve problems in their candidates.
Take the time to find ways to build on the basic frameworks and finding out-of-the-box solutions to case problems.
As you walk through this case study, find 1 key takeaway to improve next time and focus on your timing ((2min for structure, 5min for math, 2min for brainstorming, 2min for conclusion)
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