The industrial gas business is essentially an oligopoly business in which companies compete head-to-head using product-related applications and services strategies.
That’s why RapidKnowHow programs are aiming at providing INNOVATIVE GAME CHANGER BUSINESS MODELS for EXPANDING THE GLOBAL INDUSTRIAL GAS MARKET.
If you want to find out how to drive industrial gas leadership in the digital age, use our RapidKnowHow Video Strategy Now!
Industrial Gases has been a growth industry ever since their beginnings early 1900. Successful companies managing market discontinuities, thereby earning attractive returns, with profitability rates of 15%. On average, 20 per cent of the industry’s valuation is based on expectations of continued profitable earning growth.
Winning Strategy #1: Integrated Operations
Decreasing energy costs by continuously optimizing energy efficiency. Next optimizing the supply modes on-site, bulk and packaged gases while controlling the point of sales by integrated the retail network using the commission selling business model.
Winning Strategy #2: Managing Capital Investments
Right-sizing capital investments in production and distribution are critical to avoid overcapacities that would hurt the industry ROCE. Leading industrial gas companies create and launch virtual assets to drive market expansion and profitable cash-flows
Winning Strategy #3: Driving Profitable Growth.
In Emerging markets leaders focus on taking over captive plants and developing the on-site business
Leading companies offer total gas management solutions. In the growing homecare market companies acquire family-owned businesses thereby entering the consumer market. Another business model is to provide facility management to the electronic sector. Web/IT applications to manage remote inventory is another business innovation that drives market leadership
Strategic partnerships are the cornerstone for applying all these business models effectively. The goal is to drive supply chain leadership and optimize the total cost of ownership