This case requires candidates to think creatively about a disruptive technology threat while conducting rigorous quantitative analysis. The key is estimating demand for the teleportation service between London and New York, then calculating the resulting customer churn across different cabin classes. Candidates must recognize that first-class passengers represent the highest revenue risk and consider both the immediate financial impact and longer-term strategic implications.
The R&D team of Travel Wizard, a technology innovator, just announced that they have successfully invented a teleportation device which they plan to launch commercially next month. This device consists of a transmission room and a receiver room which can be placed at any distance and this one-of-a-kind device will be able transport a passenger between the two rooms within seconds.
Your client is the owner & CEO of SG Airlines, one of the biggest airlines in the world and she wants to know a few things: (1) How many customers should they expect to lose to Travel Wizard? (2) What will be their annual reduction in profit as a result?