Deloitte Case Interview Example

Deloitte is one of the big four consulting firms. In this article, we will go through an example case from their website: https://usrecruiting.deloitte.com/case-study-recreation-unlimited

This case is a classic strategy case in the retail and ecommerce space.

Understand the problem

Like with any case, the first step is to understand the problem at hand, with this we read the case summary:

The consumer products industry is seeing increasing eCommerce sales from traditional brick-and-mortar retailers, e-tailers and direct-to-consumer manufacturers that is changing how the industry competes. Despite being known for its high-quality performance and lifestyle products, Recreation Unlimited has not successfully reacted to changing customer experience preferences and lags behind competition in eCommerce sales.

The case further goes on to state:

The client has engaged Deloitte to drive top-line growth through eCommerce, specifically targeting an aggressive +40% annual growth in direct-to-consumer digital channels over the next five years. The client also has asked to incorporate organizational considerations (talent, organization, etc.) in the recommendation.

Here we see that this case revolves around growth strategy, with the client looking to improve in this area as it has not kept up with the market.

When the interviewer provides the problem statement, always clarify back your understanding of it with the interviewer.

Structure your approach

The next phase in the case is to structure you approach. Here is a example approach with questions you could consider:

Area	Key Questions
Root Cause Analysis	Why is eCommerce underperforming? (Internal vs. external factors)
Customer Experience	How can Recreation Unlimited improve and differentiate its digital experience?
Strategic Prioritization	Should the company focus on website improvements or digital marketing?
Financial Evaluation	What is the ROI of improving the website?
Organizational Impact	What are the people and organizational implications of the proposed changes?

Ensure that your structure is MECE and covers all of the key areas needed to solve the case.

Gather Data and Analyze

In the data gathering and analysis phase, you will want to ask follow up questions to the interviewer based on your structure. Note this data, and begin to analyze where it fits.

Here is an example of how you can ask follow up questions and run analysis on the data you obtain:

Question 1: Poor eCommerce Performance

Internal Factors:

Lack of Strategic Vision: No clear digital strategy or roadmap.
Poor Execution: Inconsistent customer experiences, inefficient supply chain, and fulfillment issues.
Unclear Ownership: No defined roles for digital initiatives.
Lack of Awareness: Outdated knowledge of digital trends and technology.
Talent Gaps: High turnover among younger employees, no recent training investments.
Organizational Structure: Hierarchical culture may slow innovation.

External Factors:

Changing Customer Preferences: Shift toward seamless, personalized digital experiences.
Competitor Advantage: Competitors are setting industry standards with innovative tech and products.
Macroeconomic Trends: Economic downturns or regulatory changes may impact spending.

Analysis: Recreation Unlimited’s eCommerce lag is due to both internal misalignment (lack of strategy, talent gaps) and external pressures (competitor innovation, customer expectations).

Question 2: Improving Digital Customer Experience

Value to Customer:

Emotional Connection: Use storytelling to highlight the brand’s heritage and values.
Seamless Omnichannel Experience: Integrate in-store and digital (e.g., buy online, pick up in-store; virtual try-ons).
Exclusive Digital Value: Offer promotions, loyalty programs, or personalized recommendations.

Value to Business:

Increased Transactions: Higher spend per visit, frequency of purchases, and average order value.
Brand Advocacy: Encourage social sharing and referrals through exceptional digital experiences.
Cost Savings: Reduce reliance on brick-and-mortar stores and lower customer acquisition costs.

Analysis: Improving customer experience can drive loyalty, revenue growth, and operational efficiency.

Question 3: Website vs. Digital Marketing

Evaluation Criteria:

Criteria	Website Improvements	Digital Marketing
Benefits	Higher conversion rates, better UX, long-term brand loyalty	Immediate traffic boost, broader reach
Costs	$10M one-time cost	Ongoing variable costs (ads, campaigns)
Timing	Long-term ROI (1–2 years)	Short-term results (3–6 months)
Risks	Poor execution, downtime, or low adoption	Wasted ad spend, misaligned messaging
Talent Needs	Requires UX/UI, tech, and data analytics skills	Needs digital marketing and creative talent

Analysis:

Website Improvements: Addresses the root cause of poor conversion and customer experience. Higher upfront cost but sustainable long-term benefits.
Digital Marketing: Quick wins for traffic but doesn’t fix underlying issues (e.g., poor UX).

Recommendation: Prioritize website improvements to create a foundation for long-term growth, followed by digital marketing to drive traffic to the improved site.

Question 4: Financial Evaluation of Website Improvements

Given Data:

Upfront Cost: $10M (one-time).
Additional Spend per Visitor: $1.
Annual Visitors: 20M.
Profit Margin: 50%.

Calculations:

Additional Revenue: $20M \text{ visitors} \times \\$ 20M visitors×1 = \ $20M$ 20M
Contribution (Revenue – Fixed Cost): $\\$ 20M – \ $10M = \\$ 10M=10M $
Profit (Revenue × Margin – Fixed Cost): $(\\$ (20M \times 50%) – \ $10M = \\$ 10M=10M – \ $10M = \\$ 10M=0M $

Insight: The profit breaks even in the first year. However, the $10M contribution can fund future marketing or further improvements.

Analysis:

The investment is self-funding in Year 1.
Long-term benefits (e.g., higher retention, reduced returns) are not captured in this calculation but add value.

Question 5: People and Organizational Implications

Change Management:

Analysis: Assess stakeholder impact, training needs, and change readiness.
Design: Develop training programs, communication plans, and leadership alignment workshops.
Implementation: Roll out training alongside the new website. Use feedback loops to refine the approach.

Talent and Structure:

Evaluate Current Talent: Identify skill gaps in digital, UX, and data analytics.
Upskill or Recruit: Launch training programs and hire for critical roles (e.g., digital product managers, UX designers).
Create Innovation Teams: Foster cross-functional teams focused on rapid iteration and customer-centric solutions.

Analysis: Success depends on aligning talent with strategy and fostering a culture of innovation.

Develop and test hypotheses

In this phase, you will need to develop a hypothesis that covers the primary issues at hand and that is supported by the data and analysis you have performed.

Here is an example approach to hypotheses:

Hypothesis 1: “Recreation Unlimited’s eCommerce lag is primarily due to poor customer experience and lack of digital talent.”

Test: Internal surveys and competitor benchmarks confirm both issues.

Hypothesis 2: “Improving the website will drive higher conversion and long-term loyalty.”

Test: Financial calculations show break-even in Year 1, with intangible benefits (e.g., brand loyalty) adding further value.

Hypothesis 3: “Organizational resistance and talent gaps are the biggest risks to implementation.”

Test: High turnover and lack of training support this hypothesis. A robust change management plan is critical.

Recommend a Solution

Once you have developed your hypothesis and synthesized your findings you can recommend a solution to the interviewer:

Here is an example of a solution you could recommend with action timelines:

Short-Term Actions (0–12 months):

Invest in Website Upgrades: Allocate $10M to improve UX, mobile responsiveness, and personalization.
Launch Change Management: Align leadership, train employees, and communicate the vision.
Pilot Digital Marketing: Start small campaigns to drive traffic to the improved site.

Long-Term Actions (1–5 years):

Scale Digital Marketing: Increase spend as the website’s conversion rate improves.
Build Digital Talent: Recruit and upskill teams in UX, data analytics, and digital marketing.
Monitor and Iterate: Use customer feedback and data to continuously refine the digital experience.