CEMS VSE Has Won CEMS Business Project of the Year 2023 for Defining Škoda Auto Car Subscription Model
Prague University of Economics and Business has won the CEMS Business Project of the Year 2023. The award goes to the team of five CEMS students that collaborated with corporate partner Škoda Auto on defining its car subscription business model and strategy of its implementation. The award was received by the team’s academic tutor and CEMS Academic Director Ladislav Tyll together with a corporate supervisor and Fleet Manager Škoda Auto Martin Mára, during the graduation ceremony of CEMS Annual Events 2023 in London.
Every year, all 33 CEMS schools nominate a Business Project for the CEMS Business Project of the Year competition. The jury of CEMS academic directors then decides on the top five Business Projects, from which the winning one is eventually chosen.
Prague University of Economics and Business has always been among the top universities in this “competition” and made it to the victory for the first time in 2021 which was an enormous achievement. „Scoring again shortly after our long-awaited first win tells us that it was no anomaly and that we can proudly compete with top players every year in this CEMS competition. That makes us maybe even happier than two years ago!” says Tyll.
About the project for Škoda Auto
Škoda Auto sees a steady change in consumer preferences – people prioritize convenience and flexibility. A growing number of services profit from this change while adopting a business model based on a subscription model. Customers don’t pay for each transaction separately but pay a recurring fee to maintain immediate access to a service. The well-known example of such business is the video streaming platforms but the opportunity is in a lot more areas including mobility.
„There are only a few car subscription services currently run directly by car makers, but more are set to come. Venturing into the car subscription market, Škoda Auto can tap into a new evenue stream and potentially attract a broader customer base,” says Martin Mára from Škoda Auto who led the business project.
An international team of five CEMS students, Sebastian Durka, Farouq El-Abbass, Hanna Fridrik, Ester Greksová and Pavel Králík, got the task to define how and where the Škoda’s car subscription model could work, who are the customers and how the service will be communicated.
They came up with a precise strategy that Škoda Auto can follow to successfully enter the car subscription market, with a focus on Germany which, according to their research, is the most promising to begin with. The team provided Mr. Mára with detailed situation analysis, customer profiles, customer journey and marketing strategy in general. The students identified and evaluated the proposed solution’s possible risks and conducted a feasibility study.
It was later disclosed by the company representatives that the identified solutions and recommended steps presented in the feasibility study were closely correlated with internal findings and an action plan conducted by the CP’s internal resources, thus confirming the validity and right approach taken by the students.
„I am extremely satisfied with the solutions and recommendations we provided to the client. Since car subscription is fast evolving market with ever-changing conditions, we made a very smart move by continuously recording competitive data. This enabled us to show the client how the market is changing and evolving on a monthly basis,” says one of the team members.
„Students were really focused on achieving the goals, proving their problem-solving skills in our regular weekly meetings. The whole team worked together effectively in a supportive and collaborative environment. Presented development of a new sales product, recommended marketing strategy and a functional website really exceeded our expectations. From Škoda’s perspective, student cooperation on the Subscription project was a great way to get access to fresh ideas and perspectives. Students were more willing to think outside of the box and offered new innovative and crisp solutions to the market challenges,” evaluates the project Martin Mára from Škoda Auto.
Congratulations to everybody from CEMS VSE and Škoda Auto who participated in the winning CEMS Business Project!