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Business Case Fleet Telematics (© Gunter Schoech)
Here, we would like to present to you a brief overview of how a case interview would be
carried out during a typical full day of interviews.
1. Introduction
− Introduction to SMC
− You: Introducing yourself (about 5 minutes)
− Interviewer: A brief introduction by the SMC consultant
− Interviewer: A basic question, such as: What business issues do you think Siemens and
SMC have faced recently?
− You: Examples would be restructuring and now a somewhat tentative upturn in strategy,
etc.
2. An In-depth Managerial Case
Case: Siemens Subdivision of Siemens VDO, our Automotive Electronics and
Mechatronics Supplier
Interviewer: Originally, Siemens VDO only manufactured tachographs for measuring
idle time, work time, driving time, and speed. Siemens VDO has broadened its product
range and now offers on-board computers as well. As a consultant, you have just been
assigned to the project; your job is to review the strategy.
− Interviewer: Let’s talk about the market for tachographs. Tachographs are installed in
vehicles to record idle time, work time, driving time, and speed.
Obviously, tachographs are not installed in all vehicles; what kinds of vehicles need
tachographs?
− You: Tachographs are required by law for certain commercial vehicles.
− Interviewer: That’s correct. Commercial vehicles weighing more than 3.5 tons must be
equipped with tachographs. How large do you think the market is?
− You: In order to estimate the market, one must consider new installations and the
replacement market for such devices, as well as the price per unit. New installations are
required in all areas where there is a relevant statutory requirement for the devices
and/or where such laws apply.
− Interviewer: Assume that such laws exist all over Europe and in Brazil.
− You: Fine, let’s say that there are approximately 3 million trucks in Europe and 1 million
in Brazil. Assume that each truck has a useful life of 10 years in Europe and 20 years in
Brazil. As a result, 3 million/10 = 300,000 and 1 million/20 = 50,000, meaning that
350,000 trucks/year will require new installations. In order to evaluate the market, I would
estimate the unit price of a tachograph at EUR 500. In this case, the market volume
would be 350,000 x EUR 500 = EUR 175 million.
Then, we must add to this figure the replacement parts. Let’s assume that replacement
parts worth approximately 5% of the purchase price are bought each year. For a total of 4
million trucks, that yields:
4 million x EUR 500 x 5% = EUR 100 million.
Consequently, the total market volume is EUR 275 million.
Interviewer: Very good. Let’s assume that our company has a global market share of
about 50%. The main reason for this is that the lawmakers stipulated a tachograph that
corresponds to our model/patent, i.e., customers have to buy from us.
However, now they are switching to digital tachographs, meaning that we are no
longer the only supplier. Therefore, we would like to expand the small business with
on-board computers.
− Interviewer: Where (development/manufacturing/sales) do you think our company will
face the greatest challenges?
− You: Without a doubt, the main problem is not in development/manufacturing, since
Siemens enjoys a high level of expertise in electronics. However, up until now, our
company faced no real challenges, because the customers came to us on their own.
There were not any so-called door-to-door salesmen. Therefore, I expect the greatest
challenge to lie in sales.
− Interviewer: If these assumptions are correct, how should we go about creating a
functioning sales division?
− You: We could acquire other companies to gain access to the market.
− Interviewer: After performing the necessary due diligence, the group acquires suitable
companies. Do you see any disadvantages in this?
− You: One could identify several disadvantages. The acquired companies will already
have their own products, which they also want to sell. If we are successful in convincing
the company to abandon its existing platform, we may lose its customers in the process.
It is possible that those employees who had identified with their product line will also
leave. In leaving, those employees would also take their personal contacts – our
customers – with them. Thus, there are also good reasons for establishing and
developing our own sales division.
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发表于 2008-8-10 17:16:43
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