A three-year-old Singapore based start-up, focused on manufacturing and marketing industrial renewable energy storage batteries, is planning to migrate from lab- scale production of storage batteries to industrial- scale production. The company’s CEO is facing a major managerial dilemma. Should he outsource the manufacturing of batteries, should he manufacture batteries inhouse or should he take the joint venture (JV) route? The choices he makes in resolving this dilemma can make or break the business he has built so far.
The case provides an understanding of the different stages of the growth of a start-up, the product-solution fit, the product-market fit and the product-channel fit. Students will learn to ascertain the stage at which a start-up is positioned, and what stages have been skipped, if any.
The case also allows a discussion of the ‘make or buy’ decision, especially from the position of a start-up launching a technologically advanced product in a rapidly growing market.