Difficult questions

Laos Tire
New answer on Jun 29, 2020
2 Answers
824 Views
Anonymous A asked on Feb 17, 2020

Hello,

Can someone answer the difficukt questions please?

  • Is there a possibility that foreign players can enter the market sooner than 3 years?
  • What type of marketing/sales/distribution structures should Laos Tire implement to ensure customer loyalty?

Thank you

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Ben
Expert
Content Creator
updated an answer on Jun 29, 2020
Ex-McKinsey EM | Experienced interview coach (1,000+ sessions) | Discount on 1st session | LBS MBA

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)

Was this answer helpful?
Clara
Expert
Content Creator
replied on Feb 17, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

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

Was this answer helpful?