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BCG InsideSherpa Task X Past Email Example

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Hi

I thought it might be useful for you to see an example of how we typically structure such emails.
Here is an email from a previous case for your reference - see if you can use it to guide your own
email!

====================

Hello Elisse,

Here is my report for our client telecom company: X regarding whether or not they should adopt
handset leasing. My recommendation is that they should proceed with handset leasing as it will
increase revenue and profitability.

Below are the reasons why I recommend this move:

Changing customer preferences


● Our research showed that our customers in the Korea have shown increasing liking for
leasing of premium handsets
● Re-allocation of pre-paid customers to post-paid as the popularity of SIM-only plan increases
What Competitors are doing?
● It’s no coincidence the launches come after both Singtel and SKT suffered slowing mobile
revenue in recent quarters. Singtel reported a 5.7 per cent year-on-year drop to SGD302
million in its fiscal Q4 ending 31 March. SKT’s Q1 overall revenue was dragged down by a 3.5
per cent drop in mobile service turnover to KRW2.57 trillion.
● When SIM only plans and traditional bundled plans are compared for Singapore Telecom
Industry we observed that average net revenue for SIM only plans ($520) is lower than
traditional bundled plans ($980)
● Among the top four US wireless players, Sprint and T-Mobile (TMUS) offer leasing plans.
Verizon (VZ) and AT&T (T) do not. In fiscal 3Q16, which ended December 2016, the take rate
of Sprint’s leasing plans reached ~43%. Net leased devices were valued at ~$4.5 billion at the
end of fiscal 3Q16 as compared to fiscal 3Q15, this figure was ~$3.3 billion which shows
market acceptance

In conclusion, looking at the above points, our hypothesis is that this should be a profitable business
to venture into and it is estimated that the 3 year NPV of this project will be positive.

Sources:
1. https://marketrealist.com/2017/04/why-sprint-is-focusing-on-handset-leasing-to-
accelerate-growth/
2. https://www.mobileworldlive.com/devices/blogs-devices/blogs-handset-rentals-offer-
surprising-value/

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