You are the head of analytics at an online retailer that is a competitor of Zappos, selling clothing, footwear and accessories for men, women and children. Your company is facing a difficult situation – the revenue from your major offering is declining. On technical merits, your offering is at least as good, if not better than your competitorsâ€™. Your supply chain is able to keep pace with the demand for your offering, but there have been sporadic stock-outs at your major distributors. Your market research suggests that your advertising is less creative and compelling than your competitorsâ€™. Furthermore, your major competitor contends that you have violated their patent, and is threatening a patent infringement suit. Your company is likely to go bankrupt if you lose the commercialization rights to its major offering.
You need to diagnose the situation. What are the major trends in the market? Is the market growing, stable or shrinking? What are the trends in your share of the market? You know that your company is losing revenue, but what are the trends in profitability? Are there issues with your supply chain that need to be addressed?
- What internal and external data would you need to diagnose the situation? What kinds of analyses would you run? What key performance indicators (KPIs) would you report to your CEO?