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S2E17: McKinsey Case Interview Example

Strategy Simplified

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How to Price a Product and What Is the Profit?

A study of technology innovation in the agriculture industry have shown that new products typically capture some portion of total benefits created for users. The standard medium percentage is about one half. In addition, it's estimated that the product will cost us about $3,000 per kilogram to produce fully loaded. That's indicated that one kilogram of the product can support 12 acres of mango crop.

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