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The logo for the strategic advisor board where results matter

    E-Commerce

    SAB Case Study

    This is an actual case study based on work performed

    CASE STUDY 2:  LMV MERCHANT CO. FINDS NEW AVENUES TO SUSTAINED PROFITABILITY

    The LMV Merchant Co. needed to increase profitability and identified four key areas for cutting costs. Analysis showed that by reducing these expenditures, they would be able achieve a greater revenue over the 4-month period as compared with previous years—and it worked.

    Realized Growth


    Staffing over a 6-month period: 125%


    Revenue growth over a 4-month period: 125% increase


    The Pivot

    LMV Merchant Co., one of the top 25% players in the industry, operates in a scale-driven industry that was showing early signs of price pressure. This pressure was already affecting profits. 

    Planning and decision-making have traditionally been made with a significant emphasis on “gut feel” with little actual testing or research.


    This often leads to sub-optimal outcomes, as decision-makers are not taking into account all of the relevant information. A more data-driven approach would help in making informed decisions. 


    By working with LMV Merchant Co., our goal was to help the company identify cost savings and revenue growth opportunities for them be profitable. We also provided rigor to their decision-making process so they could stay competitive within their market space.

    Our Approach in Segments


    To identify cost-saving opportunities, we used process improvement strategies and methods that were fact based. Our in-depth analysis of the operation revealed many areas where improvements could be made to save money for our company while still providing excellent customer service.


    • Digital advertising and call-center operations

    • Purchase

    • Logistics

    • Business processes

    • Organizational structures

    • Back-office functions


    Our analysis revealed four areas that could lead to improved profitability in the near, medium, and long-term. These included cost-reduction measures as well as business process improvements. 


    This will help them achieve their goals of becoming more profitable by adopting new technologies or methods for accomplishing work cheaply without sacrificing quality workmanship. 


    An additional potential avenue was globalization: opening international markets so they don’t only service American clients but also provide goods overseas service. 

     

    NOTE: The names have been changed as we respect the privacy of our clients

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