Global Camera Co with significant presence in China is operating in a price sensitive market due to which its share price performance has slipped considerably into negative when compared to the broader peer set over the last five years. Shareholders are not pleased with the management and expect recovery.

Market for its core imaging business, which accounts for the majority of its revenue, is shrinking with increasing technological advancements in smartphones. Profitability has been a concern for the company with operating margins continuously sliding.

Its current medium term strategy which requires the company to focus on growth with investments in adjacency businesses, has failed to deliver results. Cos current CEO is from its non-core business unit and hence has approached ABC to devise a near-term strategy to turnaround its share price performance.

Bain partners are of the view that it is Camera Cos conservative M&A strategy which resulted in its poor share price run. ABC consultants performed an analysis which suggested high co-relation between share price performance and profitability. Further analysis suggested innovation to be the key lever to drive profitability as customers easily shell out extra dollars when they see additional value in the product.

PART A. Which of the following most accurately describes why Camera Co. has approached ABC?

a. To help company innovate new products

b. To look for M&A opportunities

c. To analyze global camera market and deliver recommendations for next steps d. To develop a strategy to improve shareholder returns

PART B. Which of the following most accurately describes ABCs initial hypothesis in addressing the clients problem?

a. More aggressive M&As

b. Optimize the product mix through innovation

c. Cost structure improvements

d. Increasing the Average Selling Price (ASP)

PART C. ABC approached the case with three sequential modules:

1. Identified the levers to drive share price

2. Collected KPI data for client co and its peers

3. Created a hypothesis to address the problem

From the information above, what was the course of action according to you?

a. 1,2,3

b. 3,2,1

c. 3,1,2

d. 2,1,3

PART D. What according to you would be the closest adjacency for the client co?

a. Augmented reality

b. Industrial cameras

c. Smart phones

d. LED Panels