Canadian Packing Delivery

Case Study Prompt

The client is the largest package delivery service in Canada. Over the past 30 years, the firm built a network that allows it to deliver parcels to “every address in Canada.” Until last year, competition was non-existent and profits were very strong. 

Starting about 15 months ago, a new company began parcel pickup and delivery to three Canadian cities—Montreal, Toronto and Vancouver. The new entrant has a fleet of older semi-trailer trucks that run between the three cities. Our client has a very new fleet (more efficient) that services all of Canada. The client’s fleet mix has been optimized such that efficiency and capacity utilization are high considering the network of locations covered. 

The new entrant charges approximately 50% less than our client for delivery between the three cities that they cover. Our client and the new entrant charge by the lb.-mile.

Although overall parcel traffic has declined by only 10% for our client, profits have declined by almost 30% from last year. 

Outline your approach to address the decline in profitability.

Case Study Overview

Your client is a package delivery service from Canada that is experiencing declining profits resulting from a new competitor in their market. In this Deloitte case study, it’s up to you to dig deep into profitability, examine their numbers and their competition, find the root of the problem and suggest a strategy.

Getting ready for a first round interview at Deloitte? You can use the Profitability Framework to solve this case study, but we do recommend building a custom framework by combining your prior business experience with the framework.

This case has no math diagrams. The qualitative difficulty is 1 out of 4, making this a beginner level interview you can expect to see in a Deloitte first round.

Deloitte Interview Tips

What does Deloitte look for in its case interview candidates? Deloitte is looking for candidates who can present a clear case structure and will fit well into their culture.

Practice being able to clear and effectively communicate your structure to an interviewer. In addition, don’t underestimate the importance of the fit portion of your interview!

In this case, focus on finding 1 or 2 areas of improvement for your next case.

For out-loud practice with an expert, book an hour with an ex-MBB coach.