Laptopszalon used to be among the Top 3 laptop resellers – historically with a strong offline presence. As purchasing electronics online started becoming the new normal – even further accelerated by COVID, Laptopszalon intended to invest more into their online business. However, their paid media campaigns could not hit break-even, thus scaling was not an option at that stage. Simply put: if they spent more, they generated more financial loss. In the meantime, their top competitors boomed quite heavily and Laptopszalon’s overall sales numbers seemingly started to lag behind.
They needed to change something urgently in order not to lose any more market share and ultimately become profitable online, too.
Not an easy decision to make: shall they spend more to keep up with the others and accept growing overall loss at least for a while? Or shall they accept shrinking market share and growth rate, find a profitable marketing mix first then start scaling from there?”