SDMM - Assignment 2 - Group 3.pptx - Strategic Decision...

Strategic Decision
Making and
Management
Trimester
3
EnergetiCo
Aishwarya Saseendran
Jinia Bose
Reshma A
Tanya Beth Cotter
Aditya Mishra
Chandra Sekhar W S
Karpaga Vinayagam B
Rahul Deshpande
Shaikh Mohiuddin Sharief
Tati Reddy Sai Kumar Reddy
Group
3

INTRODUCTION
EnergetiCo is a Electric Mobility solutions startup started in 2010
It was one of the pioneers in the EV market
They have 2 models that were released – EnergetiCo1 & EnergetiCo2
New Innovations like “Pay As You Use” model was added to the top line of
products. This saw a massive growth in the industry.
The electric vehicle industry today is an oligopoly market. There are few competitors
that control the market. EnergetiCo continues to innovate and bring new models and
features to the EV market as stated in its vision and mission statements
Vision
“To Provide affordable and Environment-friendly transition to sustainable
transport”
Mission
“To create the most compelling EV company of the 21st century by driving
the world’s transition to electric vehicles”

COMPETITORS, MARKET SHARE, GROWTH
COMPETITORS
MOTORINO Electric Jump
Revcharge
Freni
MARKET SHARE
17.00%
25.00%
8.00%
5.00%
4.00%
41.00%
EnergetiCo
motorino
electric jump
revcharge
freni
Others
GROWTH
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
$14M
$13M
$11M
$10M
$9M
$8M
$14M
$14M
$15M
$17M
$19M
$24M
Revenue
Break-even period Steady growth of 10% -12%

MOTORINO’S PRICE CUT
Motorino holds 25% of the Electric 2 Wheeler market, with a revenue of about $21
Million USD in a year.
Assumptions Made:
• Cost Revenue Ratio of Motorino = 70%
• Price per Electric Vehicle sold by Motorino = $884.9 USD
• Price of EVs (in the table) is assumed based on avg. price
of Indian EV
With a Cost Revenue ratio of 70%, Motorino makes about $6.15 Million USD profits in a
year
Facts considered:
• As in Economic Times, there were about 100K electric 2 wheeler vehicle sales in India in 2020 - Read the article
Company EVs Sold Price of EV (USD) Price of EV (INR) Revenue
EnergetiCo
17,044
$ 818 ₹ 60,999.00 $ 13,940,000.00
Motorino
23,165
$ 885 ₹ 65,999.00 $ 20,500,000.00
Electric jump
7,766
$ 845 ₹ 62,999.00 $ 6,560,000.00
Revcharge
5,096
$ 804 ₹ 59,999.00 $ 4,100,000.00
Freni
3,946
$ 831 ₹ 61,999.00 $ 3,280,000.00
Others
43,990
$ 764 ₹ 56,999.00 $ 33,620,000.00
Total
1,01,007
$ 82,000,000.00
Motorino’s prices would be reduced by 8% with the new partnership with a Battery
manufacturer, bringing the price of Motorino EV to $814 USD (₹ 60,719 INR )