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29) You are the CEO of eScoot, a manufacturer of electronic scooters sold to Scooter rental/rideshare companies. You source all your battery components from one

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29) You are the CEO of eScoot, a manufacturer of electronic scooters sold to Scooter rental/rideshare companies. You source all your battery components from one company (BatCo) because they have the highest quality products. There are two competitors to Batco, but their products, while significantly cheaper, are also believed to be inferior. You believe that barriers to entry into the electronic scooter business are high due to capital costs needed for manufacturing facilities. However, you also know that there are contract manufacturers that might be able to manufacture components more cheaply than you can. Demand for your products are very high (400,000 units per year) and growing at 25% per year. Your plant is at capacity (400,000 units per year) and you have plans for a plant capacity addition on the drawing board, but it is at least three years away from completion. There are two other competitors in your electronic scooter business, but your product is viewed as technologically and aesthetically superior. Your competitors are each capable of producing 150,000 units per year and are at one-third capacity. You have been profitable for a year and your competitors are not expected to hit break even for at least three more years. Provide an assessment of your company using Michael Porter's Five Forces and state in what stage of the business life cycle you believe eScoot to be. (11 points)

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