German Luxury Car Market

Looking for a case study with case interview math? This BCG case will provide that – dig in to the prompt now.

Prompt

A German luxury car maker wants to grow business and is looking into selling cars in Bangladesh. The GDP growth in Bangladesh is 5% per year.

Currently, the only luxury car sold in Bangladesh is Mercedes-Benz.

The CEO wants to find out if the company enters the market, can they break even in three years?

Additional Information:

• Mercedes-Benz imported and sold 10,000 cars in this market over the past 10 years.
• There are 1000 new buyers each year.
• Existing owners replace their car every 10 years
• The price Mercedes-Benz charges is $100,000 per car.
• Assume the discount rate is zero.

How would you go about estimating market share?

Overview

In this case, the client is a German luxury car maker that wants to expand to Bangladesh. You’ve been tasked to estimate the market share for luxury cars – how will you approach this problem?

Incorporate the Market Study Framework into your structure for approaching the case, but don’t box yourself into that framework alone. Use what you know of the basic frameworks to build a framework that is custom-built for the problem in this case.

This case has no math exhibits for you to interpret, but it does have plenty of case interview math. This is an excellent case to give you an idea of what to expect in a first round case interview at BCG, with a qualitative difficulty score of 2/4.

Interview Tips: BCG

What does BCG value in its interview candidates? Excellent communication and structuring abilities.

In this case, focus on a couple of things:

• Remaining structured the entire way through the case (structure, math, brainstorming, conclusion)
• Timing yourself throughout the case: 2min for structure, 5min for math, 2min for brainstorming, 2min for conclusion

Need more case interview math practice? Work with an ex-MMB coach to hone your skills – book an hour today!