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Diversification is a corporate strategy to enter into a new products or product lines, new
services or new markets, involving substantially different skills, technology and
knowledge. Diversification allows for more variety and options for products and services
which provides a tremendous boost to brand image and company profitability.
Diversification can be used as a defense. By diversifying products or services, a
EnergetiCo can protect itself from competing companies like Motorino, ElectricJump &
others
Yes, I suggest EnergetiCo to Diversify into different segments to stay active in the
competitive market. Some suggestions like they can get into new segments like Electric
Bikes, Charging Points, Electric Rickshow or Electric Cars which will have high demand
in the market along with Electric Scooters.
Opening of Charging stations will have high impact on the sales of Current segments &
New segments, because Countries like have very less charging stations.
entering into the electric business, giving tough competition to the electric vehicle
manufacturing companies.
Since EnergetiCo is an existing key player in the automotive industry are willing to
invest a large budget to make the switch from electric motors to electric cars in mean
time.
Due to more players entering into the market, the threat of rivalry is very strong.
Power of Buyers
Bargaining power of buyers in electric vehicles industry is significant.
➢ Price sensitivity is important factor that can affect buyer bargaining power. When
the industry is growing, consumers can easily switch to a competitor's offering for
little cost.
➢ The extent of product differentiation between various EVs manufacturers is an
important factor affecting buyer bargaining power.
➢ Launching new products in EnergetiCo is another factor that increases the power
of the buyers with limited switching costs.
An answer to mitigate the power of buyers is a better customer service and a stronger
focus on brand loyalty.
Power of Suppliers
➢ In addition to this, automotive industry is a key market for the most suppliers.
Innovations happens more often on the side of the manufacturer than on the side
of the supplying vendors.
➢ Suppliers hold comparatively little power. All these factors result in a
comparatively low threat of suppliers. As it is low the input cost also will be low
eventually.
CMS20EMB444 | Tharanatha P
Power of Substitutes
➢ Faces direct competition from automobile sector. There are many substitutes
available to consumers in terms of transportation.
➢ Even though the model mix of EVs is not as broad as it is for conventional cars,
the threat of substitutes is still tremendous.
➢ Lastly, high price difference of an electric motors compared to a fueled vehicle,
also adds to the list of substitutes for EVs. As they are serving same purpose as
EVs, stands as a product substitute for EnergetiCo.
2. With the available R&D budget, make your recommendations as to how they
should prioritize their investments
Electric drive technologies, including the electric motor, inverter, boost converter, and
on-board charger, are essential components of hybrid and plug-in electric vehicles
(PEV) propulsion systems.
3. How do you think EnergetiCo’s biggest closest rival ElectricJump will react to
these strategic priorities?
The e-Mobility industry is currently in its early phase and is expected to grow during
each of the five upcoming years. This growth is expected for several reasons.
Investments from key automotive companies.
Government of India targets 30% electric vehicles by 2030. The Automobile sector
contributes 49% to India’s manufacturing GDP and 7.1% to India’s GDP. The 2nd AMP
(Automotive Mission Plan) released by the government outlines the plan to elevate the
Automotive Industry to world class levels. As part of Paris agreement in 2015, India
committed to reduce the emission intensity of its gross domestic product (GHG
emissions per unit GDP) by 33% - 35% over 2005 levels by 2030.
The EnergetiCo Market is valued at $14 million USD in 2020. And expected Market
growth at a CAGR of >34% over the next 5 years, mostly to be expected EV Market
valued at $25 million USD in 2026. One could see the trend of new mobility concepts as
a threat for the growth of EV sales. The reality however is, even ride share options or
autonomous driving require an efficient automotive. EV will become the foundation of
new businesses founded from new mobility concepts, because of lower variable costs.