LONDON--(BUSINESS WIRE)--A well-known market intelligence company, Infiniti Research, has announced the completion of their recent article on major roadblocks facing specialty chemical companies. This article highlights the key challenges in the specialty chemical sector and also explains how they affect the performance of specialty chemical companies.
Although the global specialty chemical market continues to expand, the plummeting profitability and the rising market competition are affecting the performance of specialty chemical companies. Furthermore, the flourishing market means that it would draw in more players and add on to the competitive pressure in the industry. Therefore, specialty chemical companies must understand the most pressing challenges and leverage strategic planning to overcome critical challenges.
Specialty chemical companies are currently facing several unique challenges. Fortunately, there are some measures that specialty chemicals producers can take to support success. Request a free proposal for more insights.
Key challenges facing specialty chemical companies 2019
Changing business portfolios
There is increasing product diversification and rapid merger and acquisition activities taking place in the specialty chemicals sector. Business portfolios of specialty chemical companies are highly dynamic as producers add and dispossess divisions, engage in new market entries, and participate in mergers. Moreover, globalization has given rise to business portfolio complexity of specialty chemical companies.
Dynamic demand patterns
Uncertain and unpredictable demand patterns are now becoming common in the specialty chemical sector. Companies in this sector also have only limited visibility into future customer orders. The growing customer portfolios spanning over several end-use markets and visibility into demand variability represents significant challenges for specialty chemicals manufacturers.
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Expanding product portfolios
There is increasing product innovation in the specialty chemical sector in order to increase differentiation, strategize new market entry, and maximize customer loyalty. New product introductions coupled with frequent adaptation of existing products have resulted in a significant rise in the number of products produced, consequently, leading to greater operational complexity.
Regulation and compliance
Specialty chemicals manufacturers are increasingly facing issues in the documentation of product quality and procedural compliance. These issues are largely driven by government regulations, end-use market requirements, or specific customer requirements.
Increasing customer intimacy
One of the key trends driving companies in the sector is to move closer to their customers by offering them tailored products and customer-specific service arrangements. Although this acts as a source of differentiation for specialty chemical companies, it has resulted in increased complexity of other business operations.
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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. To know more, visit: https://www.infinitiresearch.com/about-us