How could WyCar adjust its distribution strategy?
Open showrooms in large cities and sell online the “150” model given the main potential group of buyers.
If selling online a model “150” car entails handling costs of 1%, at what price can WyCar offer the car if they pass on the full savings on distribution to the customer?
They can offer the car online at € 31,815 which is WyCar’s cost before distribution (90% of € 35,000) plus 1% for handling.
Which percentage of customers has to buy the warranty in order to keep WyCar’s profit margin from model “300” stable?
80% of customers have to buy the warranty – average profit from the service is € 1,250 and the price decline to be compensated is € 1,000.
The case follows a linear storyline and is designed to be presented to the candidate by an interviewer. The interviewer should read through it to understand the structure ahead of the interview. Depending on the desired focus area of the interview – quantitative or qualitative – additional questions can be addressed along the way, e.g. estimation of EV market share (see Diagram 1) or general discussion of risks and challenges in the EV industry.