The Bertelsmann-owned French book club, France Loisirs, has successfully operated a subscription-based business model delivering a remarkably high profit margin. Considering rising economic pressure and a declining member base, the case introduces the club's basic business principles and summarizes strategic options for sustainability and further growth from a top management perspective.
The teaching objectives include: (1) understanding subscription-based business rules and their pros and cons, (2) recognizing profit optimisation options in a hybrid mail-order and shop business model, and (3) defining and formulating strategies to bolster and sustain mid-range growth and profits for a profitable, but seemingly old-fashioned business model.
- Business model
- Commitment business
- Industry and business analysis
- Customer service
- Marc Oliver Sommer