Very good applicants differentiate between expensive premium inventory -10 % of ad impressions at € 15..

Question

How can the applicant tallk about premium inventory if that word has never been mentioned in the case? I'm a little confused about this line. Can someone tell me whether the interviewee is supposed to come up with this? And if yes, then how?

Many thanks.

Answer 1

These things are what we call business judgement or intuition. A general understanding of what drives businesses across sectors and the ability to transfer this to new sectors taht you have not worked with.

Typically making these connections, especially if they are far, is not required to pass to the next round or get an offer, but they give you extra points and might balance out issues in other areas (e.g. the quant part.)

To build this level of deep understanding, you can read business newspapers and case studies conscously. Make it a habit to read the business sections of FT or Economist and reflect on the underlying issues. Read case studies on interesting dynamics of random industries to gradually build an understanding of what typical drivers are. Things like:

What are typical customer segments and which are more attractive for the business to please?
Is the industry driven by fixed or variable costs and how does this influence decision making?
What are typical power structures along the value chain (e.g. monopoly in raw materials) and how does this effect the relationship between players?
Is the business dependent on/subject to strong government regulation or do they long for a free, unregulated market?

There are many more of these questions that help you build this intuition and eventually can provide interesting insights into a case, even if not explicitly mentioned by the interviewer.

Answer 2

Hi Estelle,

As the case states "Very good applicants" do this. So, it is not table stakes (required) for you to proceed.

In general, as an interviewee, you need to solve the case. However, any additional business knowledge/acumen you have goes a long way in making you a standout candidate.

I do recommend that, in addition to casing, you build up your business knowledge! Read the Financial Times, The Economist, McKinsey Insights, BCG Insights etc. Research all the major industries out there, study accounting, supply chains, finance, etc. Any extra bit helps!

Answer 3

Hi Nadja, Your idea is good in theory, but you risk to erode your own pricing if you do that. What would probably h... (read entire answer)

Hi Nadja, Your idea is good in theory, but you risk to erode your own pricing if you do that. What would probably happen is that the advertisers wouldn't purchase the slots un... (read entire answer)

Answer 4

Sorry? The case very explicitly states the the business model as such: "The interviewee should understand here th... (read entire answer)

Sorry? The case very explicitly states the the business model as such: "The interviewee should understand here that the core product of online marketplaces is connecting dem... (read entire answer)

Answer 5

These advertising revenues is what the management seeks to focus on in the case (the core product has already been sc... (read entire answer)

These advertising revenues is what the management seeks to focus on in the case (the core product has already been screened and shows no further potential due to fierce competit... (read entire answer)