Case Study Group Discussions

Why do Recruiters conduct Case Study GDs for MBA Programs?

Recruiters conduct Case Study Group Discussions (GDs) during MBA placements to simulate real-world business challenges and observe how candidates think, collaborate, and communicate under pressure. These discussions are designed to test a candidate’s structured problem-solving approach, which is essential in roles like consulting, product management, strategy, and general management. Unlike traditional debates or abstract topics, case GDs present a practical business scenario — such as declining profitability, market expansion dilemmas, or supply chain inefficiencies — and expect candidates to dissect the problem using logic, business frameworks (like 4Ps, 5Cs, SWOT, etc.), and commercial acumen. Recruiters are keen to see how candidates break down complex issues, ask clarifying questions, develop actionable recommendations, and prioritize effectively.

Additionally, case GDs help assess team dynamics — whether the candidate listens actively, builds on others’ points, resolves conflicts, and drives the group toward a solution. Strong performers exhibit leadership behaviors such as initiating the discussion with a structured approach, guiding the group through divergent opinions, and summarizing key takeaways. Communication is also a key focus: recruiters want to see candidates who can articulate ideas clearly, logically, and persuasively, while remaining respectful and inclusive.

Moreover, case GDs offer recruiters a standardized, comparative evaluation format, allowing them to assess multiple candidates simultaneously on real-world thinking and soft skills — going beyond resume qualifications or interview performance. Ultimately, these GDs answer a vital hiring question: “Can this person work effectively in a team, think on their feet, and contribute meaningfully to solving client or business problems?” For that reason, case GDs are often one of the most revealing stages of the MBA hiring process.

Preparation Area	How to Prepare
Business Frameworks	Study key frameworks (4Ps, 5Cs, SWOT, Porter’s, Profit Tree) Use MECE buckets to break down problems logically. Practice drawing decision trees or issue trees to organize thoughts
Case Practice	Solve cases across themes: market entry, profitability, operations, pricing, etc. Time yourself during practice to simulate real GD pressure
Communication Skills	Speak in bullet points, avoid rambling, maintain flow Use linking phrases like “Building on that…”, “Let’s summarize so far…”
Team Collaboration	Respect speaking turns and acknowledge others’ points Volunteer to guide the discussion or summarize key points
Business Awareness	Read business news, startup stories, and sector insights (ET, Mint, Finshots) Understand business models across industries
Summarization Skills	Prepare 30-second summary templates: Problem ~ Root Cause ~ Key Solutions Offer to summarize discussion if others miss that opportunity

Case Study GD topics and Possible Discussion Points

We have shared 10 Case Study GD topics below, with an Opening Statement providing structure to the GD. We have also shared 10 possible discussion points. You should always add your relevant examples – personal, professional or well known examples.

Topic 1. Declining Dine In Customers

A popular Indian QSR (Quick Service Restaurant) chain has seen a steady decline in dine-in customers across its urban outlets. However, its delivery orders are growing consistently. As a strategy team, discuss how the company should respond to this shift in consumer behavior.

GD Opening Statement
This case presents a classic shift in consumer behavior where dine-in traffic is decreasing while delivery is rising. To approach this discussion effectively, we can divide it into three stages: first, breaking down the core problems — understanding why dine-in is declining and delivery is growing; second, analyzing the impact of this shift on operations, customer experience, costs, and competitive position; and finally, recommending a strategic path forward — should the company double down on delivery, revive the dine-in format, or adopt a hybrid model? Let’s begin by identifying the root causes of the changing demand patterns.

Discussion Points:

Problem Breakdown

Consumer preference shift – Rise in demand for convenience, hygiene, and at-home dining post-COVID.
Aggregator influence – Food delivery apps (Swiggy, Zomato) offering discounts, visibility, and ease.
Urban mobility and time constraints – Customers avoiding travel/parking hassles in crowded city areas.
Dine-in experience gaps – Ambience, service delays, or outdated interiors not justifying dine-in value.
Real estate and fixed costs – High rentals for dine-in space not yielding proportionate footfall.

Analysis

Profitability pressure – Delivery margins are lower due to aggregator commissions and packaging costs.
Menu suitability – Some dine-in items don’t travel well, impacting quality perception in delivery.
Operational complexity – Need to manage dual formats: dine-in kitchen vs. delivery kitchen.
Brand identity dilution – Losing premium/family-focused dine-in positioning with delivery focus.
Competitor benchmarking – Domino’s adopting 30-min delivery model; Starbucks doubling down on in-store experience.

Recommendations

Revamp store formats – Smaller express stores for takeaways + large format experiential stores in select hubs.
Invest in own delivery infrastructure – Build own app or fleet to reduce aggregator dependence and improve margins.
Enhance dine-in experience – Upgrade ambience, offer loyalty programs, in-store events, or co-working add-ons.
Leverage data analytics – Understand high-demand items, geographies, and customer preferences to fine-tune offerings.
Explore hybrid/cloud kitchen models – Set up low-rent kitchens focused solely on delivery in dense urban clusters.

Topic 2. Slow Product Adoption

A large FMCG company has recently entered the natural and ayurvedic personal care segment to compete with established brands like Patanjali, Mamaearth, and Dabur. Despite aggressive marketing and distribution, its product adoption has been slower than expected. As the strategy team, discuss how the company can improve its market penetration and brand positioning.

GD Opening Statement

This case deals with a large FMCG player struggling to gain traction in the natural personal care segment — a space already crowded with strong, purpose-driven brands. To tackle this, we can break the discussion into three phases: first, diagnosing the root causes behind the weak adoption despite scale advantages; second, analyzing competitive dynamics, customer preferences, and internal execution challenges; and third, charting out a set of strategic moves in product, pricing, positioning, partnerships, and innovation that could help accelerate growth. Let’s begin by understanding the underlying problems the company is facing in this niche, high-growth segment.

Discussion Points:

Problem Breakdown

Lack of authenticity in positioning – Consumers may not see a legacy FMCG player as truly “natural” or “organic.”
Weak product differentiation – Formulations and benefits may appear similar to existing players like Mamaearth or Forest Essentials.
Late market entry – First-mover advantage lost to Patanjali and Mamaearth, who built strong brand equity.
Misaligned marketing narrative – Using traditional FMCG celebrity ads vs. influencer-driven, purpose-led branding.
Limited trust in ingredients – Target audience might prefer ayurvedic heritage brands like Dabur for credibility.

Analysis

Consumer shift to clean beauty – Urban millennials prefer ingredient transparency, eco-friendly packaging, and cruelty-free testing.
Channel challenges – Online-first brands dominate D2C channels, while traditional FMCG may rely on offline reach.
Premium pricing misfit – Natural segment products often priced higher — not always justified by perceived value.
Competitor agility – Startups innovate faster with limited SKUs and niche targeting, while big firms may be slower to respond.
Internal resource allocation – Is the company stretching marketing/sales bandwidth too thin across portfolios?

Recommendations

Reposition the brand – Shift from functional marketing to storytelling around sustainability, ingredient sourcing, and wellness.
Launch sub-brand or new label – Create a distinct identity separate from the parent brand to appeal to “natural” customers.
Strengthen digital strategy – Focus on D2C, influencer marketing, content commerce, and community-building on Instagram/YouTube.
R&D-driven innovation – Develop unique formulations (e.g., neem + biotech actives), and highlight efficacy in campaigns.
Target niche categories – Enter less crowded spaces like men’s natural grooming, baby care, or regional ayurvedic rituals.

Topic 3. To invest or not to invest in EV

An Indian Private Equity (PE) firm is evaluating a ₹500 crore investment in a fast-growing EV two-wheeler company. The company sold 2 lakh units last year at an average price of ₹80,000 per unit, generating ₹1,600 crore in revenue. EBITDA margin is 10%, but management projects margins could expand to 15% in 3 years as scale improves. The EV sector is projected to grow at 25% CAGR for the next 5 years, but the company faces strong competition from Ola Electric, Ather, and Hero. As the PE team, discuss whether this investment makes sense.

GD Opening Statement

This investment case requires us to evaluate both the financial attractiveness and the strategic feasibility of backing the EV two-wheeler company. To structure our discussion, we can start by breaking down the current financials and industry context to understand growth potential and risks. Next, we can analyze the key drivers — revenue trajectory, margin expansion, competitive intensity, and regulatory push for EV adoption. Finally, we can debate whether the expected returns justify the ₹500 crore investment, considering exit opportunities, valuation multiples, and long-term sustainability of the business model. Let’s begin by analyzing the current performance and future projections.

Discussion Points:

Problem Breakdown

Current revenue = 2,00,000 × ₹80,000 = ₹1,600 crore, EBITDA at 10% = ₹160 crore.
Company is mid-sized compared to Ola (₹6,000+ crore in sales) and Ather (₹1,800+ crore).
Market is competitive, with price wars and subsidy dependence.
Capex-heavy industry – battery tech and R&D require sustained investment.
Uncertainty around government EV subsidies and raw material costs (lithium, nickel).

Analysis

If revenue grows at 25% CAGR, in 5 years revenue ≈ ₹4,900 crore.
EBITDA at 15% = ~₹735 crore by year 5 (vs. ₹160 crore today).
EV adoption tailwinds: government’s FAME II policy, urban pollution concerns, rising fuel prices.
Exit opportunities: IPO in 5–7 years, or acquisition by a large auto player (Hero, Bajaj, TVS).
Risks: aggressive expansion by Ola Electric, possible margin erosion if scale not achieved.

Recommendations

Investment looks attractive if entry valuation is reasonable (e.g., <20x forward EBITDA).
Consider phased investment (₹250 crore now, rest after milestones achieved).
Push for board seat and governance rights to monitor execution.
Encourage diversification into battery swapping, charging infra, or exports to de-risk business.
Proceed only if valuation and competitive positioning allow expected PE return of ~20–25% IRR.

A possible conclusion

Based on our discussion, the EV two-wheeler company presents both strong growth potential and notable risks. Financially, the company generated ₹1,600 crore revenue with a 10% EBITDA margin last year, and if the industry grows at 25% CAGR, revenues could reach nearly ₹5,000 crore in 5 years with margins expanding to around 15%, giving an EBITDA of ~₹735 crore. This indicates a clear opportunity for scale and profitability.

Strategically, the sector benefits from government incentives, rising fuel prices, and strong consumer adoption, while risks include subsidy dependence, raw material costs, and aggressive competition from Ola, Ather, and Hero. Given these factors, our recommendation would be to proceed with the ₹500 crore investment, but structure it in a phased manner tied to milestones such as achieving higher market share and improving margins. We should also negotiate governance rights and push the company to diversify into adjacent areas like charging infrastructure and exports to reduce risk.

Overall, if we can enter at a valuation below 20x forward EBITDA, the investment is likely to deliver a 20–25% IRR, making it an attractive opportunity for the PE fund.

Topic 4. QComm : 30 minutes to 15 minutes

Flipkart’s quick commerce arm wants to guarantee 15-minute deliveries in Tier-1 cities. Currently, the average delivery time is 30 minutes because warehouses (dark stores) are located on city outskirts. The company is evaluating whether to: (1) open multiple micro-warehouses inside city clusters, or (2) invest in optimizing its current delivery fleet with technology and routing algorithms. As the strategy team, discuss how the company should solve this challenge.

Current sales: 1,00,000 orders per day across Tier-1 cities
Average order value (AOV): ₹400
Current delivery cost: ₹50/order (includes rider payout, fuel, overhead)
Proposed micro-warehouse cost: ₹20 lakh setup + ₹5 lakh/month OPEX
Fleet optimization software investment: ₹50 crore upfront, reduces delivery cost to ₹35/order
If delivery reduces to 15 minutes, projected 20% increase in order volume

GD Opening Statement

This case highlights the operational challenge of ensuring 15-minute deliveries in quick commerce. To analyze it systematically, we can first identify the bottlenecks leading to the current 30-minute cycle. Next, we should compare the economics of opening micro-warehouses versus investing in fleet optimization, factoring in setup costs, operating expenses, and the potential uplift in demand. Finally, we can recommend a strategy that balances speed, scalability, and unit economics, while keeping customer satisfaction in mind. Let’s start by breaking down the existing cost and delivery structure.

Discussion Points:

Problem Breakdown

Current daily GMV = 1,00,000 × ₹400 = ₹40 crore/day (~₹14,600 crore annually).
Current delivery cost = 1,00,000 × ₹50 = ₹50 lakh/day (₹182 crore annually).
Key bottlenecks: distance of warehouses, traffic delays, inefficient routing.
Customer expectation mismatch: promise of quick commerce is 15 mins, reality is 30 mins.
Risk: churn to competitors (Zepto, Blinkit) who already deliver in 15 mins.

Analysis

Option 1: Micro-warehouses

Assume 50 warehouses in top cities ~ Setup = 50 × ₹20 lakh = ₹10 crore CAPEX.
OPEX = 50 × ₹5 lakh/month = ₹30 crore/year.
Benefit = reduces delivery time, improves customer retention, enables 15-min promise.
Challenge = high fixed cost, scalability to Tier-2/3 is limited.

Option 2: Fleet Optimization

One-time tech investment = ₹50 crore.
Delivery cost reduction from ₹50 ~ ₹35 per order.
Annual savings = (₹15 × 1,00,000 × 365) = ₹55 crore/year.
Payback period = < 1 year.

Option 3: Hybrid Strategy

Few micro-warehouses in high-demand zones + fleet optimization for scale.
Balances speed with cost efficiency.
Volume Impact – If delivery reduces to 15 mins, order volume ↑20% = 1,20,000/day.
Incremental revenue = 20,000 × ₹400 = ₹8 crore/day (~₹2,920 crore/year).
Contribution margin gain vs. investment must be evaluated.
Competitor Benchmarking – Zepto spends heavily on micro-warehouses; Dunzo/Swiggy rely more on fleet tech.

Recommendations

Adopt hybrid model: 20–25 micro-warehouses in densest clusters + tech optimization nationwide.
Pilot run in 2–3 metros to validate economics before pan-India rollout.
AI-driven inventory placement – stock high-frequency SKUs in micro-warehouses, reduce dead stock risk.
Dynamic routing + batching – allow riders to carry 2–3 orders if within time window.
Measure KPIs – customer satisfaction, order growth, cost per order, and breakeven period.

Topic 5. Telecom : Market share decline

A leading Indian telecom operator has seen its market share decline from 35% to 25% in the past 3 years due to aggressive competition from Reliance Jio and Bharti Airtel. Its Average Revenue Per User (ARPU) is stuck at ₹160/month, compared to the industry leader’s ₹210. The company wants to regain competitiveness and improve profitability in the next 3–5 years. As the strategy team, discuss how the operator should respond.

GD Opening Statement

This case is about formulating a turnaround strategy for a telecom player losing market share and stuck with lower ARPU. Firstly in Customers, we should explore why users are churning and what segments remain underpenetrated. Secondly, under Competitors, we need to assess Jio’s pricing disruption and Airtel’s premium positioning. Thirdly, for Company, we should analyze gaps in network quality, product bundling, and financial health. We can then evaluate potential actions across the 4Ps — Product, Pricing, Place, Promotion, and link them back to financial outcomes like ARPU uplift, margin expansion, and subscriber base growth.

Discussion Points:

Problem Breakdown

Customer – churn driven by prepaid users seeking cheaper bundled offerings.
Competitor – Jio winning on aggressive pricing + ecosystem, Airtel on premium experience.
Company – network quality issues, debt burden limiting capex, weak brand stickiness.
Context – 5G rollout, regulatory changes (floor pricing, AGR dues).
Consequence – ARPU gap of ~₹50 vs leader ~ ~25% lower monetization.

Analysis

Product – current offering is undifferentiated; rivals bundle OTT, fintech, and content.
Pricing – ₹160 ARPU stuck vs ₹210 industry leader ~ reposition pricing to reflect value.
Place (Distribution) – weak digital-first play vs. Jio’s app ecosystem and Airtel Black integration.
Promotion – legacy FMCG-style celebrity ads, less appeal to youth compared to Jio’s disruptive campaigns.
Partnerships – absence of strong tie-ups in fintech, gaming, or e-commerce ecosystems.

Recommendations

Network Investment (Capex focus) – invest in 5G selectively in urban clusters ~ improved quality ~ reduce churn.
ARPU Uplift Strategy – shift base to postpaid and premium plans; bundle OTT (Netflix, Hotstar, gaming packs).
Digital Ecosystem – launch/pay for strategic partnerships with fintechs, edtechs, and retail ~ higher stickiness.
Niche Differentiation – target SMEs with enterprise IoT, rural segment with affordable 4G/5G packs.
Financial Lens – each ₹10 ARPU increase on 100 million users = ₹1,200 crore annual uplift. Even a 20% churn reduction adds ~5M users back, boosting topline significantly.

Topic 6. Cups of coffee Sold in Mumbai

Estimate the number of cups of coffee sold per day in Mumbai.

GD Opening Statement

To estimate the number of coffee cups sold daily in Mumbai, I’ll break the problem into a few logical steps. First, I’ll estimate the city’s population and segment them into likely coffee consumers versus non-consumers. Second, I’ll categorize consumption occasions — at home, at offices, and at cafés/coffee chains. Third, I’ll apply assumptions for frequency of consumption in each segment and then aggregate the numbers. Finally, I’ll validate the estimate by cross-checking with alternate logic, such as number of outlets or coffee brand sales data.

Discussion Points:

Population of Mumbai ~ ~20 million.
Adult population (18+) ~ ~60% ~ 12 million.
Likely coffee drinkers ~ Assume 40% prefer coffee (rest tea or none) ~ ~5 million.
Segmentation of coffee consumption:
- At home: 70% of coffee drinkers.
- At office: 40% of working professionals.
- At cafés/outlets: 10% of coffee drinkers.
Frequency assumptions:
- Home: 1 cup/day ~ 3.5M cups.
- Office: 1 cup/day for ~2M professionals ~ 2M cups.
- Cafés/outlets: 2 cups/week average (~0.3 cups/day/person × 0.5M people) ~ ~0.15M cups.
Total estimate ≈ 3.5M + 2M + 0.15M = ~5.65 million cups per day in Mumbai.
Cross Check
- Suppose there are ~2,000 coffee outlets (CCD, Starbucks, Baristas, small cafés). If each sells 200 cups/day ~ ~0.4M cups.
- Add instant coffee/at home sales ~ ~5M ~ consistent with earlier estimate.

Topic 7. Ethical Dilemma

You are the regional sales head of a pharmaceutical company. Your team’s largest distributor in North India contributes 30% of your revenue. Recently, you learn that this distributor is engaged in unethical practices: offering illegal incentives to doctors for prescribing your drugs. If you continue with the distributor, your sales targets will be met, but your company may face regulatory and reputational risks. If you terminate the relationship, revenue will drop sharply, possibly leading to layoffs in your team. As the regional head, what would you do?

GD Opening Statement

This case presents a conflict between short-term business gains and long-term ethical responsibility. To approach it, we can first identify the stakeholders — company, customers, employees, distributor, and regulators. Next, we should analyze the trade-offs: retaining the distributor secures revenue but risks compliance and reputation, while terminating the relationship protects ethics but hurts financial performance. Finally, we must recommend a balanced course of action that safeguards long-term credibility while managing the short-term impact on business.

Discussion Points:

Problem Breakdown

Distributor contributes 30% of sales → major short-term dependency.
Unethical practices = legal, reputational, and compliance risk for the company.
Employees’ job security tied to meeting revenue targets.
Patients’ trust in medicines could erode if malpractice becomes public.
Regulators could impose fines or bans on the company.

Analysis

Utilitarian lens – which action maximizes overall good for society?
Rights-based lens – patients’ right to safe and fair medical practices outweighs sales.
Justice lens – unfair advantage to unethical distributor vs. honest competitors.
Business risk – short-term revenue vs. long-term sustainability and reputation.
Stakeholder management – balancing shareholders’ profit expectations with ethical obligations.

Recommendations

Immediately stop unethical practices — cannot compromise compliance for sales.
Report distributor internally, escalate to compliance/legal department.
Build alternate distribution channels to gradually reduce dependency.
Communicate transparently with team about short-term pain but long-term integrity.
Explore strategic partnerships or incentives for ethical distributors to fill the revenue gap.

Possible Conclusion

While the distributor contributes 30% of revenue, their unethical practices pose serious legal and reputational risks. Continuing with them may meet short-term targets but endangers long-term trust with regulators, doctors, and patients. I would recommend terminating the relationship, escalating the matter to compliance, and quickly onboarding alternate ethical distributors to manage the supply gap. At the same time, I’d communicate transparently with my team that this decision protects the company’s credibility and secures sustainable growth. In strategy, integrity must come first — short-term pain is preferable to long-term damage.

Topic 8. Spotify Product Management

You are a Product Manager at Spotify India. Despite having a large global user base, Spotify’s paid subscriber growth in India is stagnant at 2%, while competitors like YouTube Music and Gaana are growing faster. Most Indian users stick to the free tier due to price sensitivity and wide availability of free music. As the PM, discuss how Spotify should improve its paid conversion in India.

GD Opening Statement

This case is about solving a conversion problem in a highly price-sensitive market. To analyze it, we can break it into three lenses: first, Customer Desirability – do users perceive enough value in Spotify Premium vs. free options? Second, Feasibility – what features, partnerships, or localized strategies can be introduced to increase adoption? Third, Viability – how to balance pricing, margins, and long-term growth without hurting profitability. Let’s start by understanding why Indian users are reluctant to move from free to paid.

Discussion Points:

Problem Breakdown

High price sensitivity among Indian users.
Competing free alternatives (YouTube Music, JioSaavn, Gaana).
Low perceived value in ad-free, offline downloads, or high-quality audio.
Weak differentiation in local/regional content.
Limited bundling opportunities compared to competitors (e.g., Jio plans with JioSaavn).

Analysis

Localized pricing – cheaper weekly/monthly packs (like Netflix did).
Family/student bundles – aggressive discounts to drive group adoption.
Exclusive content – podcasts, indie music, regional hits.
Partnerships – with telecom operators, OTT players, or banks for free trials.
Gamification – loyalty rewards, badges, or credits for referrals.

Recommendations

Launch ₹10/day and ₹99/month packs to attract mass adoption.
Partner with Jio/Airtel for free 3-month premium trials bundled with data packs.
Build exclusive regional playlists and artist collaborations to increase stickiness.
Invest in podcast ecosystem (education, cricket, Bollywood).
Measure conversion funnel KPIs – free-to-trial, trial-to-paid, churn rate.

Possible Conclusion

Spotify’s premium adoption challenge in India stems from high price sensitivity, strong free alternatives, and limited local differentiation. To address this, I would recommend a two-pronged approach. First, tackle pricing by introducing affordable packs such as ₹10/day and ₹99/month, along with student and family bundles. Second, strengthen value by building exclusive regional playlists, partnering with local artists, and investing in podcasts. Strategic partnerships with telecom providers for bundled trials would further widen access. These measures can drive free-to-trial conversions, improve stickiness, and raise ARPU, while ensuring that Spotify adapts to India’s unique consumer behavior without diluting its global positioning

Topic 9. Revenue Management of 5 Star Hotel

You are the Revenue Manager of a 5-star hotel in Delhi with 200 rooms. The average occupancy is 70%, and the average room rate (ARR) is ₹6,000/night. Competitors charge ₹5,500–6,500. The management wants to increase revenue by 15% in the next year without adding new rooms. As the revenue team, discuss how you would achieve this goal.

GD Opening Statement

This case is about optimizing revenue using pricing, segmentation, and yield management. To analyze it, we can begin by breaking down the current revenue and identifying the levers — occupancy rate, room rate, ancillary revenues, and customer mix. Next, we can explore strategies like dynamic pricing, segmentation (corporate vs. leisure), seasonal promotions, and upselling. Finally, we can recommend a revenue plan that balances competitiveness, customer satisfaction, and profitability while achieving the 15% growth target.

Discussion Points:

Problem Breakdown

Total rooms = 200; Occupied = 70% → 140 rooms/day.
Revenue/day = 140 × ₹6,000 = ₹8.4 lakh/day.
Annual revenue ≈ ₹8.4 lakh × 365 = ₹30.7 crore/year.
Target = 15% growth → additional ₹4.6 crore/year.
Constraints: No new rooms → growth must come from higher ARR, occupancy, or ancillary sales.

Analysis

Occupancy Improvement: Raise from 70% → 80% = +20 rooms/day → extra 7,300 room nights/year. At ₹6,000 = ₹4.4 crore.
ARR Increase: Raise avg rate from ₹6,000 → ₹6,500 (within competitor band) × 51,100 occupied room nights = ₹2.55 crore uplift.
Dynamic Pricing: Peak season ARR ↑10%, off-season ARR ↓5% → optimize yield without losing volume.
Segmentation: Push higher-margin corporate bookings, reduce low-rate aggregator dependence.
Ancillary Revenue: Upsell F&B, spa, banquets → target ₹500 extra spend/guest × 51,100 guests ≈ ₹2.55 crore uplift.

Recommendations

Combine occupancy lift to 75% (+₹2.2 crore) with ARR increase to ₹6,300 (+₹1.5 crore).
Launch dynamic pricing model tied to demand forecasting (events, weekends, seasons).
Strengthen corporate tie-ups with MNCs and airlines for steady weekday occupancy.
Cross-sell ancillaries: F&B packages, weekend spa discounts, airport transfers.
Explore loyalty programs and direct booking discounts to cut aggregator commission.

Possible Conclusion

The hotel currently earns about ₹30.7 crore annually at 70% occupancy and an ARR of ₹6,000. To reach the 15% revenue growth target (~₹4.6 crore), we should focus on both occupancy and pricing. By raising occupancy to 75%, we can add ~₹2.2 crore, and by increasing ARR to ₹6,300, another ₹1.5 crore. The gap can be bridged through ancillary revenues like F&B, spa, and banquets, contributing ~₹1 crore. A mix of dynamic pricing, stronger corporate tie-ups, and upselling will ensure we stay competitive, increase yield per guest, and achieve sustainable revenue growth without adding new rooms.

Topic 10. Revenue Management of 5 Star Hotel

A large Indian retail chain with 500 stores nationwide has seen declining footfall by 20% over the last two years as customers shift to online shopping. The CEO is considering a ₹300 crore investment in digital transformation — building an e-commerce platform, implementing AI-driven demand forecasting, and using IoT for smart inventory management. As the strategy team, discuss whether the company should pursue this investment and how it should be executed.

GD Opening Statement

This case is about deciding whether a traditional retailer should invest heavily in digital transformation. To approach it, we can structure the discussion around three areas: first, the problem breakdown — why footfall is declining and what risks the company faces without action; second, an analysis of digital opportunities — e-commerce, AI, IoT, and their impact on efficiency, customer reach, and competitiveness; and third, recommendations on whether the ₹300 crore investment is justified, and how to implement it in phases for maximum ROI.

Discussion Points:

Problem Breakdown

Decline in footfall (–20%) due to rising e-commerce adoption.
Weak omnichannel presence vs. competitors like Reliance Digital and Amazon.
Inefficient inventory → stockouts in high-demand SKUs, excess in low-demand ones.
Customer experience gap — no personalization or loyalty engagement.
Without action, revenue growth stagnates and market share erodes.

Analysis

E-commerce platform – opens online revenue stream, but needs scale and marketing.
AI demand forecasting – reduces stockouts/excess inventory, improves working capital.
IoT smart shelves – real-time stock monitoring, better replenishment.
Customer analytics – targeted promotions and loyalty programs.
ROI check – ₹300 crore capex must deliver uplift in sales, margin, and customer retention.

Recommendations

Start with phased investment — pilot e-commerce in metros first.
Implement AI forecasting chain-wide — quick wins in efficiency and cost savings.
Use IoT in high-traffic stores to validate before scaling nationwide.
Build an omnichannel strategy — “click & collect,” loyalty app, targeted offers.
Track KPIs — online revenue share, inventory turnover, customer retention, ROI on digital spend.