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Medium Market Entry Profitability Supply Chain Strategy

Fastcar

#Automotive
ProHub Comment

This is a structured market entry and operational strategy case requiring candidates to evaluate market attractiveness through sizing and penetration analysis, then compare two supply chain alternatives using financial modeling. The case tests both quantitative rigor (revenue and cost calculations) and qualitative judgment (risks, implementation considerations) to drive a comprehensive business recommendation.

Estimated Time 15 minutes
Difficulty Medium
Source IESE
50 / 100
Fastcar is a big multinational automotive company in the luxury segment. It has the headquarter in Germany in production plants in Europe, North America and Latin America. Fastcar is considering to expand its sales network and to enter in Pakistan. The company is also asking what is the best supply chain strategy: shipping cars from Europe or opening a production plant in Pakistan. The CEO of Fastcar has hired you to assess this opportunity and which supply chain strategy should pursue.

Clarifying Information

  1. Fastcar has only one brand of cars, in the luxury segment. Its main competitors are Mercedes, Audi and BMW.
  2. There are no financial constrains, but all the investments should have a maximum payback period of 5 years.
  3. 5 years ago, Fastcar tried to enter in Asia, in the Chinese market, but it decided to quit after 2 unsuccessful years, due to local regulations. Legislative environment will not represent an issue this time.
  4. After-sales and maintenance market are outside the scope of this case