Case

Europe Rail Tunnel

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Problemdefinition

The airlines covering the Cologne to London route are facing a competitive threat from a new rail tunnel connecting Britain and Germany by train.

Which all factors do you think the airlines should consider before reacting to this threat?


Kurzlösung (Ausklappen)


Detaillierte Lösung

Paragraphs highlighted in orange indicate hints for you how to guide the interviewee through the case.

The airlines should evaluate the following factors -

I. Service Differentiation

Along with looking at the journey duration, the carriers should also evaluate passenger's comfort in both means of transportation and the frequency of trains/airplanes to have.

II. Customer Convenience

Factors such as ease of reaching station/airport, boarding should be considered. The airlines should also analyze how much would different customer segments be affected by this new rail tunnel.

III. Price &Cost

It is important to analyze the price sensitivity of different customer segments and the price advantage of one form of transport over another.

Implications of a price war should also be analyzed.

IV. Operations efficiency

The airlines should also focus on the efficiency of their operations. (Example - Would the firm be able to shift to a smaller airplane in case the market share decreases?)

A great answer would also include the following factors:

  • Relationship marketing or customer loyalty
  • Europe regulatory structure
  • Effects of change in fuel prices

Schwierige Fragen

If the interviewee solves the case very quickly, you can come up with more challenging questions.

Verwandte Consulting-Fragen
Bisher beste Antwort von 2 Antworten:
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi, There are several types of operational cases that you may have: 1) Operational math problems. (e.g. Should we increase the speed of the elevator or just buy a second one? How should we reduc... (mehr)

Hi Elisey, I would personally not recommend to use a single framework for all the so-called business situations (M&A, Entry, New product, Operations etc). Although this would help to more easil... (mehr)

Bisher beste Antwort von 3 Antworten:
Manager - Get you MBB offer - Teach taylor case solving, no pre-defined framework - beginners to experts

Hi Anonymous, For production issues, value chain is always a good start. I would break down issue in the typical blocks of value chain, and investigate one by one where are the bottlenecks 1.... (mehr)

Beste Antwort bisher:
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi, There are several types of operational cases that you may have: 1) Operational math problems. (e.g. Should we increase the speed of the elevator or just buy a second one? How should we reduc... (mehr)

Beste Antwort bisher:
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi, I have not seen that many operational cases available online. Feel free to reach me if you need to practice them. There are several types of operational cases that you have to master: 1)... (mehr)

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