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Keep stable profit margin

Oliver Wyman case: Full Electrons Ahead
New answer on Oct 31, 2023
3 Answers
332 Views
Victoria asked on Oct 29, 2023

How do you calculate the percentage of customers (80%) who have to buy the warranty to keep a stable profit margin in the last question?

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Cristian
Expert
Content Creator
replied on Oct 30, 2023
#1 rated MBB & McKinsey Coach

Victoria, happy to help but I struggle to understand the question for now. Can you provide more details as to what you don't understand? 

Also, adding here a resource for common terms that show up in case interviews. Might help you and others as well who stumble upon this case:


Best,
Cristian

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Victoria on Nov 04, 2023

Sorry for the inconvenience. I'm referring to the question under analysis 2: Which percentage of customers has to buy the warranty in order to keep WyCar’s profit margin from model “300” stable? I'm confused about how could we get the 80% in the answer?

Alberto
Expert
Content Creator
replied on Oct 31, 2023
Ex-McKinsey Associate Partner | +15 years in consulting | +200 McKinsey 1st & 2nd round interviews

Hi Victoria,

We need more details on your question. Happy to keep talking un private, just send me a message.

Best,

Alberto

Check out my latest case based on a real MBB interview: Sierra Springs

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Ian
Expert
Content Creator
replied on Oct 30, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Victoria,

Help us help you!

Which specific part of the case are you referring to? And where is your confusion? (Screenshots help!)

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Victoria on Nov 04, 2023

Sorry for the inconvenience. I'm referring to the question under analysis 2: Which percentage of customers has to buy the warranty in order to keep WyCar’s profit margin from model “300” stable?

Ian on Nov 05, 2023

I see Idea 1, 2, and 3 as sections

Cristian gave the best answer

Cristian

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