Beyond reading a hundred-plus books a year, I read and study a handful of case studies used in MBA programs. I’ve stated on my podcast numerous times that case study analysis is one of the best ways to build not just our business acumen but also to hone our problem-solving abilities.
Accordingly, I’m pairing a drywall case study with Quantrix. Quantrix may seem overkill when an Excel spreadsheet could suffice. However, in Part 2, I’ll add scenario management, which will give you practical ideas bring this case study to life in your business situation.
Case Study Discussion
Inspired by a Darden case study, I’ve revised the assumptions below for a small drywall manufacturer facing a new entrant in the market it serves. The new business is offering a similar product at a 10 percent lower price point than the company we are analyzing.
- Unit volume = 250,000/year
- Unit price = $20
- Variable cost per unit = $6
- Allocated fixed cost per unit = $4
In the video, I’ll show you how I set up this case study and what happens when we match the competitor’s price. We will also explore other scenarios for addressing this competitive threat. Finally, I’ll show you how I used the Solver functionality in Quantrix (a step-up version of Excel’s Goal Seek).
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