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Seoyeon

on Dec 25, 2019

Global

Question about

about 300

Also, can't agree with the idea that competitor's 250 model is better option for customers than Wycar 300. I know the effective price of 250 model is 44,000 euro. However, Wycar 300 is still a better option even if it is 51,000 euro. Customers have to pay 170 euro per 1km for Wycar 300, while 176 euro per 1km for the competitor's.

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Top answer

Luca

Coach

on Dec 25, 2019

BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Seoyeon,

Here you are doing a big assumption, that WTP is directly proportional to the vehicle's range.
You could be right, but what if the average customer needs only 250km to finish his day without any problem?
When you want to challenge the solution is better to state your thought being careful to underline your hypothesis. Your interviewer could still appreciate your critical reasoning skills.

Hope it helps,
Luca

1 comment

Seoyeon

on Dec 26, 2019

Thank you. I agree with you, but it would have been better with this explanation on the first hand.

Clara

Coach

on Dec 26, 2019

McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Where in the case do you see stated that " competitor's 250 model is better option for customers than Wycar 300"?

Precisely the point from the beggining is to realize that there is much more in the analysis that only the €/km analysis.

Cheers!