Corporate Strategic Intelligence: BASF

March 28, 2017 | State of the Market Report

BASF is the world’s largest chemical company, with about 70% of its businesses currently maintaining top-three market positions. Its diverse portfolio is almost evenly split between commodities and specialties. BASF’s success so far largely relies on its operational efficiency and cost advantage, stemming from its dominant scale and integrated value chain called Verbund structure. It has also constantly worked to reduce its exposure to cyclical commodities by shifting its product mix toward higher-value specialty solutions. In recent years, BASF has undertaken an overall careful corporate strategy on both in-house innovation and technology scouting. This indeed helps the firm steadily adjust its portfolio while keeping a healthy cash flow during volatile market conditions, but has resulted in its overall moderate innovation performance relative to its major rivals, which leaves the big company vulnerable to increased competition and market swings. BASF needs a more flexible and efficient business model to balance its portfolio between commodities and specialties in order to sustain its future growth.

Coverage Areas

  • Accelerating Materials Innovation
  • Agro Innovation
  • Bio-based Materials and Chemicals
  • Corporate Strategic Intelligence: Chemicals and Materials
  • Emerging Ecosystems in Agrifood and Health
  • Exploration and Production
  • Owning the Energy Transition

Table of Contents

  • Title page
  • Contents
  • Strategic Spotlight: Verbund concept drives operational excellence & cost advantage
  • Strategic Spotlight: Active Portfolio Management – toward specialized, technology-driven offerings
  • Strategic Spotlight: Sustainability shapes a better brand
  • Lux Competitive Benchmark: BASF
  • BASF’s future

Lead Analyst

Mia Lu
Research Associate

Contributors

Brent Giles, Ph.D.
Matthew Wagner, Ph.D.

About Lux Research

Lux Research is a leading provider of tech-enabled research and advisory solutions, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux clients are empowered to make more informed decisions today to ensure future success.

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