Management Consulting
Harvard Business School
Management Consulting Club
Case Interview Guide
2011
Cases contributed by Management Consulting Club and consulting companies.
Note: Case guide is strictly for the use of current HBS Management Consulting Club members. No part of this document may be reproduced or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the written permission of HBS Management Consulting Club.
Company Provided Case – Telecom Co. (pg. 1 of 11)
Bain & Co.
Case summary for facilitator only
Industry
Telecom
Primary issue
Market entry
Other topics
Investment business case, break even analysis
Situation
Client provides satellite TV services (DBS) nationally
Complication
Customer base being threatened by telcos and cable companies (triple play)
Consider deploying wireless network (WiMAX) to offer broadband internet
Key questions
Should the client go into the WiMAX business?
Key components
Suggested framework: quantify revenues and costs; analyze risks
Quantitative: analyze costs and revenue of new venture
Answer
The investment is too high and would take years to break even; client should focus on defending core business
(satellite TV)
21
Company Provided Case – Telecom Co. (pg. 2 of 11)
Bain & Co.
Case summary for facilitator only
Additional Background
• Our client is a provider of satellite TV services
• Client facing increased pressure on its customer base from telcos and cable companies offering “triple play” bundles of TV, internet, and phone services
• Client considering deploying WiMAX wireless networks across the USA to offer its customers broadband internet (and potentially phone service - VoIP)
- Offering triple play will allow the client to compete with telcos and cable companies
• Deploying WiMAX is extremely expensive, driven by:
- Spectrum costs: acquiring frequencies from the federal government - Base stations,: tower that send/receive wireless signal (similar to cellular) - CPE:
Management Consulting Club
Case Interview Guide
2011
Cases contributed by Management Consulting Club and consulting companies.
Note: Case guide is strictly for the use of current HBS Management Consulting Club members. No part of this document may be reproduced or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the written permission of HBS Management Consulting Club.
Company Provided Case – Telecom Co. (pg. 1 of 11)
Bain & Co.
Case summary for facilitator only
Industry
Telecom
Primary issue
Market entry
Other topics
Investment business case, break even analysis
Situation
Client provides satellite TV services (DBS) nationally
Complication
Customer base being threatened by telcos and cable companies (triple play)
Consider deploying wireless network (WiMAX) to offer broadband internet
Key questions
Should the client go into the WiMAX business?
Key components
Suggested framework: quantify revenues and costs; analyze risks
Quantitative: analyze costs and revenue of new venture
Answer
The investment is too high and would take years to break even; client should focus on defending core business
(satellite TV)
21
Company Provided Case – Telecom Co. (pg. 2 of 11)
Bain & Co.
Case summary for facilitator only
Additional Background
• Our client is a provider of satellite TV services
• Client facing increased pressure on its customer base from telcos and cable companies offering “triple play” bundles of TV, internet, and phone services
• Client considering deploying WiMAX wireless networks across the USA to offer its customers broadband internet (and potentially phone service - VoIP)
- Offering triple play will allow the client to compete with telcos and cable companies
• Deploying WiMAX is extremely expensive, driven by:
- Spectrum costs: acquiring frequencies from the federal government - Base stations,: tower that send/receive wireless signal (similar to cellular) - CPE: