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Case Study Prompt
A German luxury car maker wants to grow its business and is looking into selling cars in Pakistan. The GDP growth in Pakistan is 6% per year.
There are over 200 million people in Pakistan, but the luxury goods market is quite limited. In fact, currently, the only luxury car sold in Pakistan is BMW.
The cars are sold direct – no dealerships carry BMW, so each one is special ordered from Germany and brought into the country individually. For the purposes of this case, the luxury car market does not include re-sold cars – only new cars.
The CEO wants to find out if the company can break even in 2 years if it enters the market. What would you look at to help the CEO?
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