1. Should EnergetiCo diversify into a different segment of products that may be more profitable":. Use the 5Forces model to suggest a few segments. State your assumptions clearly. Answer Diversification is a growth strategy that involves adding products, services and markets to your company's core business. Putting EnergetiCo's eggs in many baskets is one way to minimize risk. Diversification in EnergetiCo can mean expansion through new product lines or services. You can use this strategy to take advantage of momentum in a new market, or to minimize the risk of your core market shrinking. Adding new product lines, or entering a new market is one way to reignite growth. This strategy is known as market diversification. The aim is to open up new markets and new customer groups, thus improving your company's performance. Depending on your goals and resources a diversification strategy may be internal, external or a combination of both. Porter's 5 Forces: Porter's 5 Forces is an analytical model that helps marketers and business managers look at the 'balance of power' in a market between different organizations on a global level, and to analyse the attractiveness and potential profitability of an indusn'y sector. lCompetitive rivalry Threat of substitute products Bargaining power of buyers Threat of new entrants Bargaining power of suppliers Markets with few competitors are attractive but can be shortlived. On the other band, highly competitive markets with many companies chasing the same work reduce your power and can push you to lower your prices and innovate new products