Eureka Case 25 min Sustainability

Where the Value Leaks

You are Sabine Herrmann, 45, newly appointed Sustainability Lead at Helvar Werkzeuge, a 55-year-old Stuttgart maker of professional power tools. The owners have given you eighteen months and EUR 24 million to redesign the business model without letting EBIT margin fall below 10%. Before anything else they want your diagnosis: where is today's model losing the most value?

The situation

Helvar makes drills, saws and hedge trimmers for tradespeople and serious hobbyists across German-speaking Europe: EUR 280 million of revenue last year, 1,300 people and a 12% EBIT margin. It sells mostly through retailers, with a smaller direct channel that is growing. Its products are over-engineered on purpose: a tool carrying its badge is built to run for 15 years or more. Its commercial planning, though, assumes the customer buys a new one every five to seven years.

On Monday 23 November 2026 the owners left you two documents with the same note. One summarises new European rules that will require manufacturers to prove, within eighteen months, that tools can be repaired rather than replaced. The other is a client list: two trade accounts worth EUR 14 million between them have moved to ToolFlow, a venture-backed rival that rents tools by subscription. The mandate is to redesign the model for measurable ecological and social value, spending up to 24 million and staying above a 10% margin.

The owners' scorecard reads ecological value 12 out of 100, social value 10 and coherence of the new approach 0, because there is none yet. You spent nine years running the durability lab; the sales force is paid on units shipped and the factory is tooled for volume. Your team has gathered four candidates for the main "leak": packaging and shipping on the direct channel, the factory's energy use, the campaigns that push new-unit sales, and the replacement habit itself.

Your job in this case: look at what the figures say about each candidate, work out what the replacement habit is worth to Helvar today, and name a single leak in the memo for the owners. Everything you choose afterwards will be designed to fix what you name now.

The decision

Where does Helvar's current model lose the most value?

  • A · The five-to-seven-year replacement habit
  • B · Packaging and shipping on the direct channel
  • C · Marketing that pushes new-unit sales

The rest of the case is locked

The data, the calculations, the decision itself and what happens next open with your institution's access code.

Have an access code?

No code yet?

Instructors can request access for a course. Tell us who you are and which course it is for, and we will send your institution a code.

Run it live in class: every student decides and justifies, and the whole class sees how it splits. How Eureka Case works →