Wonda Engines
Case Prompt
Our client is Wonda engines, an international automobile engine manufacturer. Despite being a large player in this competitive industry, Wonda engines’ performance has declined the last three years and they have hired us to reverse this trend.
Additional info (when prompted by the interviewer):
- Objective: Wonda engines specifically wants to increase its margins of its North American business segment within the next three years.
- Business Model: Wonda engines sells engines to big vehicle manufacturers.
- Competitors: Wonda engines is the 2nd largest engine producer in the industry with 23% of the market. The 1st and 3rd largest players have market shares of 28% and 19% respectively.
General response summary
The interviewee should recognize that this is a profitability prompt and create a framework that could include the following:
- Existing/new customers or distribution channels, product mix and new products, pricing/elasticity, promotional strategy, JV/M&A opportunities, corporate overhead and direct/indirect plant costs.
- Changes in customer preferences in the auto industry, autonomous vehicles potentially disrupting the auto industry, low gas prices causing greater miles driven.
If the interviewee does not mention evaluating Wonda engines’ existing product line, encourage them to continue brainstorming and guide them in this direction.
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