Chemical Consulting: Strategy and Business Planning

Challenge: A major North American resin supplier engaged Chemical to develop a polyolefin market entry strategy capitalizing on shifting global trade patterns.

Solution: We developed an analysis of the global and regional polyolefin markets to determine the viability of overseas supply to the North American market. The market analysis included the supply, demand and margin environments, detailed market segmentation and the market opportunity for imported resins. A global cost analysis was developed to determine the cost competitiveness of potential polyolefin suppliers. This project also included a detailed analysis of the polyolefin value chain in North America. Key players and prevalent business models were identified with an emphasis on resin producers, plastics converters and distributors. Buying behavior and buyer decision criteria were determined for each end use market segment.

Results: The client received a market entry strategy with various options, including addressable market segments and supplier requirements.

Challenge: A North American packaging resin producer hired Chemical to develop strategic options for maximizing shareholder value.

Solution: We examined the client’s main options, including continuation as a stand-alone company, as well as potential M&A options for enhancing shareholder value. Project analysis included a competitive cost analysis for the North American packaging resin industry, including overseas suppliers to the market. We also developed a detailed analysis of the packaging resin value chain in North America. Key players along the value chain were identified and profiled. Prevalent business models were defined. The packaging resin market was also segmented by major end uses. Market growth, industry trends and competitor positions in each end use market were determined. Competitive positions were determined based on a combination of buyer behavior-oriented bases of competition as well competitive cost position and business portfolio considerations.

Results: Based on the packaging resin industry analysis, a competitive map for the North American packaging resin market was developed. We identified potential industry evolution along alternative paths as well as the implications for shareholder maximization options.

Challenge: A Middle Eastern petrochemical producer engaged Chemical to design a more unified go-to-market approach for its diverse petrochemical and joint venture portfolio.

Solution: We benchmarked the client against leading global marketing and logistics practices.

Results: The client received a recommended go-to-market strategy that better aligned with its competitive market requirements, as well as enabled an extended market reach. We also recommended the client realign its market organization to more effectively conduct sales for the client and its joint venture partners.

Challenge: A global confectionary company hired Chemical to help formulate a response to its narrow and declining supplier base against a background of increasing price volatility for its petrochemical-based raw materials.

Solution: As part of the engagement, we helped the client better understand the nature of the factors driving the supply and demand and pricing of these key raw materials.

Results: Working with the client, we developed a procurement strategy that reduced supply risk, increased the long-term supply base and optimized category spending through a combination of improved contracting structures and practices, as well as the identification of potential alternative suppliers and alternative raw materials.

Challenge: Chemical was retained to examine the financial viability of constructing a world-scale, gas-based petrochemical complex in the Far East of Russia.

Solution: As part of the study, we examined the facilities at three different locations in the Far East of Russia that would deliver product into China, Northeast Asia and the global markets.

Results: We provided the client with a cash flow analysis of potential options and a marketing plan indentifying the optimal mix of sales into each of the regions.

Challenge: An energy company in Southeast Asia/Oceania hired Chemical to provide a systematic and strategic master plan that identified midstream and downstream opportunities tied to natural gas.

Solution: We analyzed target markets, project descriptions, estimated economic returns, capital requirements and joint venture and alliance opportunities.

Results: The client received a study comparing and recommending multiple products over several years.