Management Consulting Case Study-Window Manufacturer

Case Prompt

You are a consultant at Deloitte, and your client is a major player in the window manufacturing industry. Despite holding a significant market share, they are seeking your assistance to devise strategies for revenue growth.

Exhibit

Currently, the company manufactures three types of windows, all designed for residential buildings:

• Premium Windows
• Mid-Range Product Line
• Economy Line

While there is not a significant difference in quality among these lines, the premium products boast additional features. The company positions all its lines based on superior functionality. These products are distributed through specialty retailers, hardware stores, and supercenters like Home Depot.

The window market comprises three major players and numerous smaller "mom and pop" manufacturers. Your client's market share varies substantially across different regions in the United States:

The overall size of each market segment is the same. Presently, the company operates exclusively within the United States and is profitable.

Background

Key insights and information gleaned during the case discussion:

Many windows are designed with features suitable for cold regions, not hot ones.

The company's economy line windows are still more expensive than competitors' offerings with minimal features.

Final Analysis

To address the client's need for revenue growth, I initiated by gaining a comprehensive understanding of the industry and the client's operations. Share information across the three product segments was eventually provided.

I explored potential avenues for revenue growth, including international expansion, emphasizing distribution and sales in the South, and increasing market share in the economy segment. During this exploration, the interviewer inquired about the reasons behind lower market share in the South and economy segments.

It was subsequently revealed that many of the features highlighted by our client in their products were tailored for cold weather regions, not suitable for hot climates. Additionally, the economy line, despite being positioned as such, remained pricier than competitors offering fewer features.

In light of these insights, I recommended the following strategies for revenue growth:

Acquisition of a Small Player:

The client should consider acquiring a smaller competitor with a strong presence in the South and economy segments. Given the prevalence of numerous small players and the client's profitability, this should be a feasible option for expanding market share.

Reposition the Economy Line:

To enhance competitiveness, the client should reduce features in the economy line, thus lowering production costs. This would enable them to compete more effectively against economy segment competitors.

International Expansion:

Considering their product design, the client should explore international expansion, commencing with Canada. The superior functionality of their windows for cold environments aligns with Canadian market needs.

By implementing these recommendations, the client can strategically position themselves for revenue growth and improved market presence, both domestically and internationally.