Executive Summary

How can a spin-off validate its business model and secure the resources needed for growth? This was the central challenge tackled by E&I students in collaboration with the Austrian Institute of Technology’s newly established spin-off, Danube Cell Manufacturing (DCM). The goal was to help DCM refine its value proposition and optimize its market entry strategy.

By validating DCM’s value proposition, which aims to fill a key market gap in Austria and the broader EU, the students delivered impactful results, including:

• A comprehensive market and competitor analysis to identify opportunities and risks.

• The development of a detailed customer profile to better target DCM’s ideal segments.

• Strategic recommendations tailored to ensure sustainable growth and competitive positioning.

This collaboration provided DCM with actionable insights and a strong foundation to navigate its future growth journey.

Goal

The goal of this project is to validate the market need for customized Lithium-Ion Batteries. Furthermore, Danube Cell Manufacturing (DCM) will be equipped with market insights, strategic recommendations, and tools necessary to successfully enter the Austrian and broader European cell manufacturing market. By addressing critical challenges such as understanding the competitive landscape, identifying target customer needs and pain points, and effectively positioning its value proposition, the project aims to enable DCM to differentiate itself in a rapidly evolving market for cell manufacturing and customized battery solutions. 

Ultimately, the objective is to give a solid foundation for DCM to make further strategic decisions, build a sustainable competitive advantage, and achieve long-term success in the dynamic cell manufacturing industry.

Methodology

The methodology for this project successfully combined primary and secondary research to validate Danube Cell Manufacturing’s business idea. Secondary research was done by reviewing industry reports and market studies, providing a clear picture of the competitive landscape and market trends. Competitor insights were summarized in a benchmarking matrix, which identified market gaps and opportunities based on key metrics such as production scale, customization capabilities, and sustainability practices. Based on knowledge already acquired, interviews were set up to find out details about topics that were not yet sufficiently covered by secondary research. Semi-structured interviews with battery market experts and potential customers provided deeper insights into market demand and customer pain points. Findings from the interviews underpinned the insights already gained from the desk research, but also provided thought-provoking impulses in other directions. The mix of primary and secondary research helped us to cover the greatest possible number of aspects and thus achieve an optimal result for DCM. 

Results

The project identified key results for Danube Cell Manufacturing to successfully enter the market by fostering strategic partnerships, such as finding a strategic investor and utilizing existing AIT connections. To become initially competitive, DCM should focus on pricing over sustainability, with sustainable production practices being implemented once the company is established. A pre-standardized product catalog and additional R&D customization options can attract clients while reducing development costs and enabling upselling through services like testing and certification. Positioning DCM as a driver of the energy transition with strong R&D capabilities, alongside targeting the aviation market with high customization needs, presents significant growth opportunities. Finally, conducting a smoke test to validate the market need and additionally gather real market feedback will provide crucial insights to refine offerings and ensure alignment with customer expectations.

Cooperation Partner

• Danube Cell Manufacturing GmbH

• Schöpfleuthnergasse 11/1/2, 1210 Wien, Austria

Contact Person

• Marcus Jahn - Marcus.jahn@ait.ac.at
   

Student Team

• Florian Bernleithner

• Julian Grandl

• Fabrice Keraudren

• Benedikt Liebsch
   

Project Manager

• Dr. Dorothee Horvath

• Mag. Benjamin Monsorno