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S10E19: McKinsey Airline Industry Case Interview Example

Strategy Simplified

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The Cost of the JED Engine

The JED engine division is not profitable, but there's something we can do here. So maybe we can source the goods from other suppliers or just ramp up the in-house production some way to have a more streamlined and more cost-effective process. And what might be the reason that the COG's for JED engine is higher? Maybe there's a premium in the parts compared to the popular plane.

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