This case is mostly interviewer-led. The questions should be used to guide the interviewee. The challenge of this case lies in the structured handling of the following three task areas:
Structuring & Exploring → Quantitative Analysis → Conclusion & Recommendation
Except for the quantitative assessment, the mentioned solutions are examples, and not exhaustive. The interviewee can mention additional topics that are not explicitly mentioned in this solution. All figures and numbers used in this case study are illustrative and do not represent actual figures.
As a consultant at Mercedes-Benz Management Consulting, you are actively shaping the future of mobility. While you are contributing to decisive projects that design the future of the world’s No.1 premium carmaker, you also develop your own career path and you have the unique possibility to build your personal brand and cultivate relationships with the top management.
Your client on your current project, the C-Class model series responsible, asks you to explore new profit pools and business opportunities regarding optional equipment.
Initially, you shall structure and explore potential business models, and discuss necessary conditions and implications of these business models. In a next step, you shall identify possible options and prepare them for decision. And of course, the client is interested in your recommendation.
How would you develop a possible framework that considers the main dimensions of the problem at hand?
Can you list possible products and define a category name for each field matrix?
Which examples of optional equipment for private users come to mind, that may be offered on a monthly subscription and activated via internet?
Which opportunities and challenges do you expect along the entire automotive value chain? In order to explore these opportunities and challenges, please describe the automotive value chain of an OEM first.
Your client likes the idea about offering heated front seats as a subscription service. How would you proceed in order to evaluate whether they should do it or not?
How would you compare price point A and price point B in terms of price elasticity of demand? At which price point do we lose more customers in case of a marginal price increase?
How could you increase the profitability?
On your way to a meeting, you meet the CEO of Mercedes-Benz AG. As you are riding the elevator together, you want to tell him quickly your opinion about software activated special equipment. Please take one minute to structure your thoughts. Afterwards you have one minute to give the CEO an elevator pitch and a personal recommendation about software activated special equipment.