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LyondellBasell Industries’s Business Strategy Case Study

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LyondellBasell Industries’s Company Overview


LyondellBasell Industries N.V., incorporated October 15, 2009, is a global chemical company. The company manages its operations through five Segments: Olefins and Polyolefins-Americas (O&P-Americas); Olefins and Polyolefins-Europe, Asia, International (O&P-EAI); Intermediates and Derivatives (I&D); Refining, and Technology. Its chemicals businesses consist primarily of processing plants that convert liquid and gaseous hydrocarbon feedstock into plastic resins and other chemicals. Its chemical products tend to be building blocks for other chemicals and plastics, while its plastic products are used in large volume applications. Its customers use its plastics and chemicals to manufacture a range of products that people use in their everyday lives including food packaging, home furnishings, automotive components, paints, and coatings.

https://www.lyondellbasell.com

Country: Texas

Foundations date: 2000

Type: Public

Sector: Industrials

Categories: Chemicals


LyondellBasell Industries’s Customer Needs


Social impact:

Life changing:

Emotional: provides access, badge value

Functional: simplifies, reduces risk, organizes, integrates, reduces effort, quality, variety, saves time


LyondellBasell Industries’s Related Competitors


Mitsubishi Chemical Holdings SABIC Dow chemical DuPont BASF Huntsman

LyondellBasell Industries’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.

Why LyondellBasell Industries’s Business Model is so successful?

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