Assignment #1: EnergetiCo

Deadline:20th August 2021

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).

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.

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.

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)