Relevant Market Segments

Another example from a significant but often overlooked market is the feed additive industry. Phytase is an enzyme added to feed enabling swine and poultry to utilize the typical plant phosphate storage compound phytic add 

Chemicals Acrylamid Amino Acids 100,000 1,4 Pol5uners Mitsubishi Rayon 

Ethyl (S)-4-clor-3-hydro- 150 Pharma Daicel Chemical 

Source Dechema Positionspapier, Frankfurt, 2004 personal communication  

Obviously the enzymatic process is beneficial concerning the ecological balance. Energy input, side products and emissions are reduced or avoided completely. By simplifying the production plant to only a few steps fixed and variable costs drop down. 

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BASF is thus currently endeavouring to establish the substance DINCH as a new registered substitute (entirely tested plasticiser without any hazardous properties) for DEHP in high-price market segments (e.g. medical devices). Soft PVC users substitute on the material level, if they can achieve further process-related and/or quahty-related optimisations in the course of technological development (e.g. underbody hard shells) Environment and health-compatible substance properties are additional qualities in business-to-business (B2B) markets. They are of relevance almost only for manufacturers, who market their products on demand-dominated, saturated markets with differentiated quality production — Hypothesis 8). 

The washing process can be seen as an example of how an industrial sector can provide technology and innovation to improve the sustainability profile of a market segment that is relevant to virtually all consumers. 

Industry networks. The natural owners are the incumbents in this case, too, because they own the existing customer interface and can provide the e-channel with the necessary liquidity to make its value proposition work. The industry networks may create the highest value from access to the customer interface, which will eventually be developed into a close relationship. Therefore, the emergence of this e-channel is a true discontinuity for the marketing and sales approach which will fundamentally change the way business is conducted in the relevant segments of the chemical industry. 

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