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.
Hello and Welcome! Today, we’ll outline the three main value drivers of the BaseMarket Strategy. The BaseMarket Strategy is one of the best strategies for driving profitable growth.
Segment Strategy: Focusing on Profitable Segments
The three segments Cutting&Welding, Home-Care and Retail are the core business segments of the BaseMarket.
Cutting&Welding The Job to be done for the welder is to create a high-quality weld in the fastest possible time. Professional industrial gas companies provide quality gases, equipment and application know-how that helps the welder to do his job.
Home-Care The job to be done for the home-care service provider is to offer high-quality services for the patient. Professional home-care providers offer medical gases, equipment (regulators etc.) , medical masks, and remote management of medical equipment.
Retail The job to be done for the retail seller is to provide a one-stop shop for small and medium-sized local customers. Professional industrial gas companies provide a Welders-Choice concept which includes
the design and
the order-fulfilment as well as
the stock-optimization of the retail shop.
Value Strategy: Capturing Market Value
The three segments Cutting&Welding, Home-Care and Retail constitute around 70% of the total turnover of a medium-sized industrial gas company with a 20% EBIT margin and an average of 10% Sales CAGR rate.
Growth Strategy: Driving Service Business Growth
Base Market Business is essentially a service business where professional industrial gas companies offer unique branded service packages. They establish a competitive edge by developing attractive and unique service packages for each market segment.
Base Market Business is also a local business. This means you can transfer the experience and know-how from one market to the other. This will avoid “re-inventing the wheel” which saves time, money and makes you the fast mover on each market.
The Base Market Business Program from RapidKnowHow offers the complete package: The Base Market Handbook, The Base Market Program and The Base Market Tool Box.
