EnergetiCo is a company in the area of electric mobility solutions. After multiple rounds of funding...

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EnergetiCo is a company in the area of electric mobility solutions. After multiple rounds of funding and investing significant effort and resources they developed and released two models of electric scooters in the market. They have been relatively successful with a present market share of 17% which translates to revenues of $14 million USD (~100 Cr. INR). The electric scooters segment estimated to be worth $82 million USD (~560 Cr. INR). Electric Scooter Market Shares (Total Market Size: $82 m USD) Others 41% Freni 4% EnergetiCo 17% Revcharge 5% Competitor products in this emerging segment of two wheelers are steadily increasing and with the costs of manufacturing not expected to decrease sharply in the mid-term, EnergetiCo is faced with deciding its future. Market penetration in rural locations are still very low at 0.1% of addressable market. Several options are open to them and they have decided to hire a team of strategy consultants to develop their mid-term strategy. Your main goal is to increase overall revenue to $23 million USD. Assess the case and make your recommendations. Motorino 25% ElectricJump 8% Being one of the first companies in this segment, after a break-even period of 6 years, EnergetiCo enjoyed a steady growth rate of 10-12% over a 5 yr. stretch. With the introduction of a "pay-as-you-use" business model they have added to their top-line and continued to grow. They are now planning their business strategy for the next 5 years. EnergetiCo has an R&D budget of 5% of their annual revenues. Questions 1. Should Energetico diversify into a different segment of products that may be more profitable? Use the 5-Forces model to suggest a few segments. State your assumptions clearly (10 marks) 2. With the available R&D budget, make your recommendations as to how they should prioritize their investments (10 Marks) 3. How do you think EnergetiCo's biggest closest rival ElectricJump will react to these strategic priorities? (10 marks) EnergetiCo is a company in the area of electric mobility solutions. After multiple rounds of funding and investing significant effort and resources they developed and released two models of electric scooters in the market. They have been relatively successful with a present market share of 17% which translates to revenues of $14 million USD (~100 Cr. INR). The electric scooters segment estimated to be worth $82 million USD (~560 Cr. INR). Electric Scooter Market Shares (Total Market Size: $82 m USD) Others 41% Freni 4% EnergetiCo 17% Revcharge 5% Competitor products in this emerging segment of two wheelers are steadily increasing and with the costs of manufacturing not expected to decrease sharply in the mid-term, EnergetiCo is faced with deciding its future. Market penetration in rural locations are still very low at 0.1% of addressable market. Several options are open to them and they have decided to hire a team of strategy consultants to develop their mid-term strategy. Your main goal is to increase overall revenue to $23 million USD. Assess the case and make your recommendations. Motorino 25% ElectricJump 8% Being one of the first companies in this segment, after a break-even period of 6 years, EnergetiCo enjoyed a steady growth rate of 10-12% over a 5 yr. stretch. With the introduction of a "pay-as-you-use" business model they have added to their top-line and continued to grow. They are now planning their business strategy for the next 5 years. EnergetiCo has an R&D budget of 5% of their annual revenues. Questions 1. Should Energetico diversify into a different segment of products that may be more profitable? Use the 5-Forces model to suggest a few segments. State your assumptions clearly (10 marks) 2. With the available R&D budget, make your recommendations as to how they should prioritize their investments (10 Marks) 3. How do you think EnergetiCo's biggest closest rival ElectricJump will react to these strategic priorities? (10 marks)

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