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Madflix.com
53.9k
Times solved
Intermediate
Difficulty
Our client is madflix.com, a website similar to Netflix. The biggest difference is however that Madflix targets mainly men and provides a majority of “mad movies”, such as action, horror, or science-fiction movies.
Clients sign up online, order online, receive the movie and mail it back. Madflix is not satisfied with the profit margin, as it has declined over the last two years.
The CEO has hired us to recommend a solution.
Video Solution
Further Questions
What possibilities would you suggest in order to reduce the costs (cost rationalization)?
Note for Interviewer
More questions to be added by you, interviewer!
At the end of the case, you will have the opportunity to suggest challenging questions about this case (to be asked for instance if the next interviewees solve the case very fast).
53.9k
Times solved
Intermediate
Difficulty
Do you have questions on this case? Ask our community!
A unique feature of this case is that the variable costs of Madflix do not depend on sales volume, but on other drivers (e.g. average number of movies returned each month).
The interviewee should understand the revenue and cost structure, identify the increase in cost and recommend a solution.