Clariant Corporation Marketing
Case study Analysis
Professor Robert Cronin
The purpose of this case study analysis in to find the alternative solutions and the most suitable recommendation for Swiss – based Chemecal producer Clariant International Limited. – CAN NOT WRITE THE PURPOSE OF THIS STUDY!
Several problems that impacted sales grows objectives of chemical industry in general and underlying earnings of growth that indicated to be poor.
Clariant Ltd is facing problems related to mature market conditions such as high market competitiveness, excessive supply of demanded chemical materials, and variability of ...view middle of the document...
They are produces in large quantities and have standard configurations. Commodity chemicals are used in various industries with a wide range of applications, and have the same function in most of the cases. Because of its standardized form and wide range of application commodity chemicals market has fierce competition that is driven exceptionally by the price.
Specialty Chemicals take over 17% of the market, approaching $400 billion of sales world – wide by the aend of year 2000. The difference with commodity chemicals is that specialty chemicals are much more application and end use specific for the customer. The chemicals are designed according to the clients demand and specific way of application of this chemical. The competition of the specialty products producers varies by three categories: Tier One, Tier Two, and Tier Three.
Tier One producers are giant high profit companies specializing in particular chemicals. Their sales are on an average over 10 billion dollars annually.
Tier Two firms were less profitable, on an average 3-5 billion range annually. These companies are large, and separated into entities in order to focus on each entity particular portfolio. Clarient Ltd belongs to Tier Two segment as it holds six global divisions focused on a particular portfolio.
The following segment of Specialty companies is Tier Three that on an average makes 1 -2 billion dollars per year and offers narrow line of products then other two segments. The Success of Tier Three companies depend on high competitiveness due to the uniqueness of the product.
Clarient Ltd is focusing on Commodity and Specialty Chemicals produced and distributed widely around the globe.
Clariant Intrenational Limited develops and supplies Custom made chemical components with very wide application in many industries to thousands of customers in Europe, the Americas, Australia, Asia, And Africa. Chemical components surrounding everyday lives of billions of people, therefore the demand on chemical products exists in both - developed and non-developed countries.
Chemical Industry market is Mature showing many of the traits that are usually associated with mature market:
• Slow overall market growth
• Increased competition for market share with increased emphasis on price
• Experienced buyers have leverage of producers
• Product research becomes largely incremental – few revolutionary inventions
• Falling industry profitability
Industrial globalization and technological development of the production stimulated the growth of competition around the globe. More new competitors entered chemical industry market though eased transportation, supported by developed technologies and innovation and lower price range of the products (India, China). Many of these competitors were low cost government supported competitors that became a serious threat to other companies in the industry benefiting over them with low labor costs, low tax rates and accordingly...