Should Indigo prioritize expanding its print-on-demand book selection to increase catalog diversity or focus on optimizing existing bestseller inventory for faster delivery times?

Introduction

The trade-off we're examining today is whether Indigo should prioritize expanding its print-on-demand book selection to increase catalog diversity or focus on optimizing existing bestseller inventory for faster delivery times. This scenario touches on key aspects of product strategy, inventory management, and customer experience in the e-commerce book industry.

I'll approach this analysis by first asking clarifying questions, then identifying the trade-off type, understanding the product ecosystem, formulating a hypothesis, defining key metrics, designing an experiment, planning data analysis, creating a decision framework, and finally providing a recommendation with next steps.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Indigo is facing pressure from competitors in both selection and delivery speed. Could you share more about the current market dynamics and Indigo's position?

Why it matters: Helps understand the urgency and strategic importance of this decision. Expected answer: Indigo is losing market share to competitors with wider selections or faster delivery. Impact on approach: Would influence whether we prioritize aggressive expansion or incremental improvements.

• Business Context: Based on Indigo's business model, I assume print-on-demand is a higher margin but slower fulfillment option. Is this correct, and how does it compare to the economics of bestseller inventory?

Why it matters: Affects the financial implications of our decision. Expected answer: Print-on-demand has higher margins but longer lead times. Impact on approach: Would inform how we balance profitability with customer satisfaction.

• User Impact: I'm curious about our user segments. Do we know if our core customers value selection diversity or delivery speed more highly?

Why it matters: Ensures we're addressing the most critical user needs. Expected answer: Different segments have different priorities. Impact on approach: Would help tailor our solution to key user groups.

• Technical: Regarding our print-on-demand capabilities, what's our current capacity and scalability?

Why it matters: Determines the feasibility of expanding the print-on-demand catalog. Expected answer: There's room for growth but with some technical limitations. Impact on approach: Would influence how aggressively we can expand print-on-demand offerings.

• Resources: How are our warehouse and logistics teams currently staffed and equipped?

Why it matters: Affects our ability to optimize bestseller inventory and delivery. Expected answer: There's some capacity for improvement but significant changes would require investment. Impact on approach: Would impact the timeline and scope of delivery optimization efforts.