Difficult questions

Hi there,

Please see below my suggested answers:

1. Yes, foreign players can and even should enter earlier. They can undercut Laos Tire on price (assuming it's above $49), and the latter wouldn't be able to retaliate, as they would be giving up too much of the profit, without driving the competitor out as their costs will soon be lower than those of Laos Tire.

2. There is a wide range of possible answers, but here are a few examples:

• Marketing - run / sponsor "buy local" campaign to create brand loyalty
• Sales - lock-in their B2B customers in long contracts in exchange for a discount
• Distribution - develop new distribution channels, e.g., direct to consumer or direct to car manufacturers, again at an attractive discount

Hope that helps!

Ben.

(edited)

Hello!

For which purpose would you like these questions?

The ones you mentioned are more brain teasers than MBB cases, so I would not focus my time on those kind if you are preparing for Consulting. Better, work on the library of cases available in the page.

Best,

Clara