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MBMC Case: Exploring the future of automotive mobility

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< 100 Ratings

Case Prompt

As a consultant at Mercedes-Benz Management Consulting (MBMC), you are actively shaping the future of automotive 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 is the head of product strategy who reports directly to the CEO. She asks you to explore new profit pools and business opportunities regarding innovations and monetarization strategies.

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 quantitatively analyze possible options and prepare them for decision. And of course, the client is interested in your recommendation.

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1. Structuring & Exploring

The Head of Product Strategy is responsible for the profitability of the Mercedes-Benz portfolio. In this context, innovations from research and development (RD) are of particular importance. She therefore wants you to collect and structure these features and the ways to monetize them.

1.1 How would you develop a possible framework that considers the main dimensions of the problem at hand?

The case focuses on B2C customers.

1.2 Can you list possible products and define a category name for each field of the matrix?

1.3 Which 3-5 examples of features come to your mind, that may be offered on a subscription basis and fit to Mercedes-Benz’s luxury ambition. Also, on which one should Mercedes-Benz focus?

1.4 Generally speaking, which basic conditions must be fulfilled in order to be able to offer AD Level 3 on a subscription basis?

1.5 Which challenges do you expect along the value chain to introduce AD Level 3 to the market? (optional)

2. Quantitative Analysis

The Head of Product Strategy is happy with your first evaluation and wants you to focus on “AD Level 3”. She asks you to ensure that a subscription mode, where the hardware is pre-installed, is the right way to go versus a one-time payment.

2.1 Can you define the input factors you need, to come up with an evaluation for the two options?

2.2 Please evaluate the two options

3. Conclusion & Recommendation

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 Mercedes-Benz’ luxury ambition and the potential to monetize on it via subscription models.

3.1 Please take one minute to structure your thoughts. Afterwards you have one minute to give the CEO an elevator pitch and a personal recommendation regarding AD level 3.

Now this is your time to shine! As there is no right or wrong answer at this point, we do not want to give you a proposal for a solution. However, we recommend you to be creative and to put as much of your own personality as possible into your elevator pitch. We wish you the best of luck!

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