Strategy Simplified S17E3: McKinsey Automotive Industry Practice Case Interview
Mar 14, 2025
Kabreya Ghaderi, a former McKinsey consultant and expert case coach, guides listeners through a live automotive industry case interview. The discussion reveals techniques for effectively analyzing market share and competitive economics. Kabreya emphasizes the importance of understanding unit economics, labor costs, and consumer preferences in strategic decision-making. She also shares invaluable tips on note-taking and mental math, essential for excelling in case interviews. This session is packed with useful insights for aspiring consultants looking to sharpen their skills.
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Structure Approach for Automotive Case
- Break down the client's unit economics by sales and costs for better insight.
- Analyze variable and fixed costs and segment sales by car type and competitors.
Material Costs Dominate Assembly
- Material costs account for about 75% of a car's assembly costs.
- Labor and overhead represent the remaining 25% of costs.
Competitor Cost Efficiency Insight
- Japanese competitors have approximately 8% lower car production costs.
- They reduce labor hours and labor cost per hour while keeping material cost similar.