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Why Braskem's Business Model is so successful?

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Braskem’s Company Overview


Braskem is a leading petrochemical company headquartered in São Paulo, Brazil. Established in 2002, it is the largest producer of thermoplastic resins in the Americas and the world's leading biopolymer producer. Braskem's product portfolio includes polyethylene, polypropylene, PVC, caprolactam, raw materials for solvents, and other chemical products. The company operates in a global scale with industrial units in Brazil, United States, Germany and Mexico. Braskem is committed to innovation and sustainability, continuously investing in research and development to create solutions that improve people's lives in harmony with the environment. Braskem's business model revolves around the production and sale of a wide range of petrochemical products. The company sources raw materials like naphtha, gas, and ethane from various suppliers and converts them into valuable products using its advanced manufacturing facilities. These products are then sold to a diverse range of industries, including automotive, construction, healthcare, and packaging, among others. Braskem's strategic partnerships with suppliers and customers, coupled with its focus on innovation and sustainability, enable it to maintain a competitive edge in the market. The revenue model of Braskem is primarily based on the sales of its petrochemical products. The company generates revenue through direct sales to manufacturers and distributors across different sectors worldwide. The pricing of its products is influenced by various factors, including the fluctuating costs of raw materials, market demand, and competition. Additionally, Braskem also earns revenue from its research and development services, providing innovative and sustainable solutions to its clients. The company's strategic geographical presence and diverse product portfolio enable it to maintain a steady revenue stream, even in the face of market volatility.

https://www.braskem.com.br/

Country: Brazil

Foundations date: 2002

Type: Public

Sector: Industrials

Categories: Chemicals


Braskem’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access

Functional: integrates, quality, variety, informs


Braskem’s Related Competitors



Braskem’s Business Operations


Cross-subsidiary:

When products and goods and products and services are integrated, they form a subsidiary side and a money side, maximizing the overall revenue impact. A subsidiary is a firm owned entirely or in part by another business, referred to as the parent company or holding company. A parent company with subsidiaries is a kind of conglomerate, a corporation that consists of several distinct companies; sometimes, the national or worldwide dispersion of the offices necessitates the establishment of subsidiaries.

Licensing:

A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Low touch:

Historically, developing a standard touch sales model for business sales required recruiting and training a Salesforce user who was tasked with the responsibility of generating quality leads, arranging face-to-face meetings, giving presentations, and eventually closing transactions. However, the idea of a low-touch sales strategy is not new; it dates all the way back to the 1980s.

Make and distribute:

In this arrangement, the producer creates the product and distributes it to distributors, who oversee the goods' ongoing management in the market.

Performance-based contracting:

Performance-based contracting (PBC), sometimes referred to as performance-based logistics (PBL) or performance-based acquisition, is a method for achieving quantifiable supplier performance. A PBC strategy focuses on developing strategic performance measures and the direct correlation of contract payment to success against these criteria. Availability, dependability, maintainability, supportability, and total cost of ownership are all standard criteria. This is accomplished mainly via incentive-based, long-term contracts with precise and quantifiable operational performance targets set by the client and agreed upon by contractual parties.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

Supply chain:

A supply chain is a network of companies, people, activities, data, and resources that facilitate the movement of goods and services from supplier to consumer. The supply chain processes natural resources, raw materials, and components into a completed product supplied to the ultimate consumer. In addition, used goods may re-enter the distribution network at any point where residual value is recyclable in advanced supply chain systems. Thus, value chains are connected through supply chains.

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