Harrison Energy EV Goals

#Power & Utilities #Energy
ProHub Comment

This case tests problem structuring, financial analysis, and strategic decision-making under constraints. The candidate must synthesize market maturity analysis, financial viability calculations, and capability assessments to recommend a phased market entry strategy. The case elegantly demonstrates how external readiness (market TCO crossover point in 2023) becomes the bottleneck for entry timing, requiring candidates to combine quantitative reasoning with strategic judgment.

Estimated Time 26 minutes
Difficulty Medium
Source ROSS
10 / 100
Our client, Harrison Energy, is one of the largest power & utilities companies in the US. You are in the year 2018, and the CEO sees electric vehicles as an attractive market and wants to enter the space. She needs help understanding how and when to enter the market, and the associated ROI. She has hired your firm to help formulate a strategy.

Clarifying Information

  1. Goal/objective is to be present in a new market and add more sources of revenue and eventually profits.
  2. Scope limited to the US market only
  3. Client is not currently involved in the EV market
  4. Client wants to know when to enter the market
  5. Harrison Energy does not know where in the EV value chain it wants to play
  6. Harrison Energy wants to break-even on any investment in 5 years
Mock Interview
Interviewer

Our client, Harrison Energy, is one of the largest power & utilities companies in the US. You are in the year 2018, and the CEO sees electric vehicles as an attractive market and wants to enter the space. She needs help understanding how and when to enter the market, and the associated ROI. She has hired your firm to help formulate a strategy.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
Score coming soon
Practice this case with AI Mock Interview

Harrison Energy, a major US power utility, seeks to enter the EV market. The case guides candidates through determining optimal entry timing (2023, when EV TCO equals ICE TCO), selecting value chain components (batteries, charging stations, software, power generation—excluding vehicles), and choosing between building capabilities or acquiring competitors within a 5-year payback constraint. The recommended strategy yields $550M annual profit by entering 5 segments through acquisition or build strategies.

Key Insights:

  1. Market entry timing should be driven by external readiness (demand conditions) rather than internal readiness alone—TCO parity is the inflection point
  2. Value chain segmentation requires filtering by both financial viability (payback period) and strategic fit (brand alignment, synergies)
  3. Large incumbents have competitive advantages in distribution, customer relationships, and supplier power that specialist competitors lack
  4. The 5-year payback constraint eliminates the largest opportunity (vehicles at $20-40B) due to poor ROI and brand misalignment
  5. Strategic entry into complementary segments (batteries + charging + software) creates a holistic value proposition targeting fleet electrification