Solstice Travel: Finding 23% Growth
Consulting
medium45 min0 submissionsFlipkart
Scenario
Solstice Travel (online travel, Southeast Asia) has grown at 2% a year for three years. The new CEO has committed the board to 23% growth — a gap of roughly $173 M of incremental revenue in year one.
What we know.
- Current revenue: $823 M
- 1087 active customers
- Annual customer churn: 17%
- Estimated share of existing customers' relevant spend: 15%
- The core market is growing at 4% — so the company is roughly holding share
The CEO's instinct is to enter a new geography. The CFO thinks the answer is in the existing base. Nobody has yet sized either.
Supporting data
market
- core market growth pct
- 4
customers
- active customers
- 1087
- annual churn pct
- 17
- share of wallet pct
- 15
- average revenue per customer
- 757130
current state
- revenue m
- 823
- growth pct
- 2
- revenue gap m
- 173
- target growth pct
- 23
Your task
Build the growth case. Provide:
- Analysis — where growth could come from, sized.
- Risks — of the options you recommend and reject.
- Recommendation — a prioritised growth portfolio for the next 24 months.
Ready to move forward? Up next: Vantage Analytics: Trial-to-paid conversion Dropped 23%Next question
How you'll be graded
100 points, 60% to pass.
- evaluation25
- recommendation25
- option generation25
- problem structuring25
Hint
Reveal suggested structure
Decompose growth into five sources and size each:
- Retention — reducing 17% churn
- Penetration — raising 15% share of wallet
- New customers in existing segments
- New products to existing customers
- New geographies or segments
Score on size, speed, cost and risk. The first two are usually cheapest and fastest; the last is usually slowest.