Competitive business models

One of the major drivers for this change is fierce competition from emerging countries, vrhere large quantity production is cheaper and potentially more fiexible. New competitive business models should be thus based on novel manufacturing technologies and a holistic approach to process development, vhere sustainability through chemistry, safety and respect of the environment are the driver for innovation and not the elements slowing do vn the development, the cultural model that has often dominated the business in the past. 

As for Other aspects of this competitive business, models are continually being developed, used to guide design changes, compared with measurements, and further refined. These refined models are generally closely held and treated as proprietary intellectual property. 

Electronic marketplace/E-commerce In addition to the many databases available and person-to-person contacts, E-commerce in plastics has been conducted through suppliers web sites or the dot-commerce independent web sites that link material buyers with sellers in transactions or auction formats. During the year 2000 five plastic producers/suppliers and various elastomer producers/suppliers created a new and important business model of a joint-venture web site. It provides multiple companies to join forces to do business. This is a strategy some observers call competition and others regard as just another form of selling in. an electronic format. Regardless of how it is perceived, the model will help propel e-commerce into the mainstream of processor procurement due to the size and wealth of the companies involved. The plastic model example is the largest online business-to-business site todate. 

The extent to which the code reflects the business model is related to the architecture. If the code must be changed every few days to keep competitive with others (for example, financial dealing systems), the requirements of users should translate directly to code changes, which must closely reflect a suitably flexible business model. If high performance is needed and changes are rare (as in an... 

Chemical Leasing builds on the concept of the Cleaner Production approach as it is a preventive, environmental, service-oriented business model that aims at improving overall efficiency, enhancing environmental performance and increasing the competitive advantage of industry. 

Motives for the introduction of the new business model Advantages in business competition. ... 

Motives for the introduction of the new business model - higher competitiveness - cost reduction - strong supply chain system - long-term business relationship ... 

First, let us recall the shortcomings of the sales concept in face of information asymmetries. As stated in section 2, the traditional selling of chemicals, firstly, does not prevent over-consumption. In a competitive market it is rather the aim of the sales concept to sell as much commodities as possible to increase the profits of the sellers. A sales contract consequently provides no incentives to reduce such adverse effects of chemicals on human health and the environment that are related to the quantity of chemicals in use. Secondly, the sales concept provides no incentives for transferring accurate knowledge on the efficient application of the chemical, as this lowers the profits of the sellers. In contrast, Chemical Leasing business models are capable to effectively deal with problems of information asymmetries. Based on the findings of Ohl and Moser (2007), both models introduced above (A and B) show comparative advantages as follows ... 

The presumption that the new business model is competitive and contributes to a cost reduction was also confirmed. Furthermore it was predominantly indicated that this model should be used also for other products. 

The chemical industry has to revitalize the drivers of innovation to proactively generate sustainable competitive advantage. Innovative breakthroughs can happen in a variety of dimensions, including not only new compounds, applications, and processes, but also new services and business models. 

So how will the biobased economy actually happen Erickson believes that radically new business models will appear that challenge traditional companies, but unique opportunities for the fast movers will be created. Companies that are early adopters of industrial biotech will gain a competitive advantage in the marketplace, said Erickson. 

Use traditional business models to encourage competitive bidding among the candidates for partnership. 

Assessment and re-examination of the business model is especially important as the segment matures. As a chemical moves from discovery to growth, to maturity, and on to decline, its customer needs, competitive dynamics, and market characteristics change. These inflection points require a refinement (or in some cases total change) of the business model (Fig. 5.11). The key success factor here is the ability to anticipate changing market dynamics in order to be a first mover in developing a new and more successful model. 

In summary, picking the correct business model and executing it better than the competition should enable each business unit to maximize its current performance. That will enable the business to beat the competition in current markets. But what about the future. How will the business unit continue to grow, given mature markets and fierce competition. ... 

Of course, true competitive advantage is usually the result of making coordinated innovations on multiple fronts. Through the combination of its iPod and iPhone products with its iTunes business model, Apple created about 70 billion in shareholder value in just three years. Amazon s business model innovation of cutting out the brick-and-mortar store is coupled with service innovations such as 1-Click, Recently Viewed Items, Customer Reviews, and Books You Might Also Like. This is a taste of how these companies have innovated across the board. 

The pharmaceutical business is described above as composed of Generics and Big Pharma, each with its own business model. The distinction does not holdup in all cases. Although selling at a premium under the protection of a patent is Big Pharma s modus operandi, many patents are also obtained by generics companies. This is for two reasons, at least. First, because of the competition from all... 

Complete the techno-economic study for the system, including business model and competitive assessment. 

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