The focus of attention in the chemical and materials industries is on the structural changes in the following three areas: 1) Increased volatility of resource prices and decreasing prices and commoditization in the downstream; 2) Maturity of the domestic market and expansion of the overseas market; and 3) Expansion of new business opportunities in the inter-industry field where different industries integrate.
In accordance with these market changes, industry restructuring will be accelerated on the global scale in the chemical and material industries. Reinforcement of the global marketing system and establishment of new business models in cooperation with other industries are the issues that Japanese companies should address in order to leave behind the competitors of emerging countries, expedite business expansion in the new fields, and win the competition. In carrying out these reforms, companies are required to determine what business models they should adopt in the focus of which area.
NRI's expertise is not limited to the chemical and materials industries. We have been fostering industry experts who understand technologies and markets of the application industries in further downstream, focusing on providing consultation services utilizing study and analysis skills with the principle of genchi-genbutsu (Go, see & study). We provide our clients with a wide range of support such as redefining their core competence, planning entire-company strategic concepts that form winning patterns corresponding to new environment changes, recombining portfolios, and developing new businesses with a view to collaborating with external companies.
Reform of business portfolios and corporate structure under global strategies
Traditionally, many Japanese companies fuel their growth by differentiating their products. However, in order to win the global competition, it is essential for them to identify the customers and areas to focus on and establish a system where they can provide products and services suitable for their customers. In addition, as global industry structures are changing, it is also important to recombine portfolios with a view to the business partnership with other companies.
NRI considers that Corporate Department has an important role in proposing such reform. Our support goes beyond the conventional framework of the operational department. We support evaluation of current business situations including market environment and the company's competitiveness, creation of the concept of entire-company reform in collaboration with the entire-company planning department, promotion of the feasible framework in cooperation with workers on site and finally, establishment of the new system with workers on the site.
Business structure reform and new business development with a view to getting help from others
Many projects turn into money-losers in an instant. Trying to fix them under loss is usually an up hill battle. NRI understands the business cycle and volatility of a project, and can advise robust business structures that can resist changes in the outer business environment.
Preparation of new business domain is the key. Many firms suffer from "Not-Invented-Here" syndrome, sticking to in-house technology that may reduce the success rate of new projects. NRI's methodology focuses on macro-trends and core competence, create new business hypothesis based on the analysis, and test / modify them according to the real market experience. We can assist your new business development, including ways to utilize outside resources.
Please feel free to contact us for management consultation or any other questions about our consultation services.
Representative Department: Consulting Division