LONDON--(BUSINESS WIRE)--After an anemic growth of only 2% in 2016, the major players in the chemicals industry are struggling to bring profitable expansion to their businesses. Analysts have predicted that changes in the economic structure, inherent uncertainty in the market, and hyper- competition between the players could create a rather disturbing market for the chemical industry. To address these issues, Infiniti Research has released their three strategies which can act as a catalyst for growth in the chemicals industry:
1) Striking a fine balance between pricing and volume
It has become necessary for chemical manufacturers to shift their focus from increasing the volume of sales, to improving their pricing strategies as profit cannot be increased just by increasing the production volume. Moreover, the demand from the consumers is limited by the structural weakness of the chemicals industry. This theory is not applicable for the renewable products like biopolymers. The market for the latter has seen a significant increase.
2) Revamping product portfolio
Renovation and expansion of portfolio is needed to gain a competitive advantage in the market. For fetching a better position, companies like Bayer, Dow, and DuPont have already entered into mergers and acquisition agreements. Manufacturers have gradually started moving towards areas which are more lucrative in nature, by expanding the product portfolio.
3) Adoption of digitization
Digitalization has been successful in providing solutions for difficulties faced by many businesses. This has provoked the chemical industry to incorporate digitalization in their system. By integrating manufacturing and business processes and optimizing sales and marketing strategies, manufacturers have been successful in moving to diversified fields of operations from just being ‘product sellers’. The functioning of the chemicals industry has been further enhanced by machine learning and artificial intelligence. Not only has it helped to optimize workforce, but the entire process of operations, and redesigning work strategy.
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The chemical industry is facing a progressively harsher environment due to volatile raw material prices, increasing competition, growing concerns for the environment, and the need for supply chain optimization. Drawing on 14+ years of experience in the industry, Infiniti Research offers industry-specific solutions tailored to help chemical company leaders and chemical manufacturers tackle these concerns to achieve sustained growth.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.
With 14+ years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, strategy, and research services for over 550 companies across the globe.