Introduction
The trade-off we're examining today is whether MakeMyTrip should prioritize expanding its hotel inventory to offer more budget options or focus on adding luxury properties to attract high-value customers. This decision is crucial for MakeMyTrip's growth strategy and market positioning. I'll analyze this trade-off by considering user segments, business impact, technical feasibility, and long-term strategic implications.
I'll start by asking clarifying questions, then identify the trade-off type, analyze the product, and develop a hypothesis. From there, I'll define key metrics, design an experiment, plan data analysis, create a decision framework, and finally provide a recommendation with next steps.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps understand our strengths and growth opportunities Expected answer: Stronger in budget, room for growth in luxury Impact: Would influence which segment to prioritize
Why it matters: Affects the potential revenue impact of each option Expected answer: Yes, luxury bookings have 2-3x higher margins Impact: Would make luxury expansion more attractive if true
Why it matters: Helps align expansion with user needs and potential demand Expected answer: 70% budget, 30% luxury seekers Impact: Would influence which segment has more growth potential
Why it matters: Affects feasibility and timeline of implementation Expected answer: Luxury properties often require more complex integrations Impact: Could influence speed of expansion and resource allocation
Why it matters: Impacts our ability to execute effectively in each segment Expected answer: More experience with budget, but building luxury capabilities Impact: Might require additional hiring or training for luxury expansion
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