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The Petrochemical Industry has been one of the industries with the larges consolidation movement globally for the last 10 years. This consolidation happened mostly in the downstream area of the value chain. The challenges for the future will remain in generating further operational excellence, work on the development of new upcoming markets but also new applications with environmental friendly products (biotechnology) as well as R&D in the development of new products that foster less energy consumption.

This will also be driven by more innovation of applications supported by more customer intimacy in the sense of Value Co-Creation with the immediate customer but also with the customer of the customer through the entire value chain. Good examples are the developments that are happening in the agrochemicals industries (strong integrations with distributors and resellers) and the resins industry with application developments in collaboration of all players. Resin producer, resin formulator, resin product developer, resin product producer, product assembly and sales, and finally the consumer.

The development and management of strategy has been one of the critical elements to successfully manage these changes and developments. Leading petrochemical enterprises have been focusing on strategic ways to gain a strong position in this industry through strong differentiation and developing means to be a power-player in the value chain. A well-defined strategy management system and a good execution havealways been key. The strategy management system has been enriched with good analytical tools of the industry supported by innovation methodologies like Client Value Co Creation approaches and have put a strong emphasis on the best management of CAPEX/STRATEX initiatives through project portfolio prioritization in front of new strategic scenarios as well as good project management.

Initiatives have been supporting strategic themes like operational excellence, supply chain optimization and integration, client relations management, sustainable development, business and M&A development, human capital development and research and development. The members of The Strategy Management Collaborative have been working in this industry for more than 10 years with more than 50 strategy management projects delivered. The companies have developed a central of expertise of continuously monitoring the latest development in petrochemicals as well as best practices in strategy formulation and execution.

For more information, please contact ourIndustry Expert Mathias Mangels.

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