Innovation in Chemical Products
Practice this advanced market innovation & growth case interview question from BASF in the Manufacturing sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This is a strategic business model innovation case requiring the candidate to diagnose market conditions, differentiate between commodity and specialty strategies, and recommend tailored go-to-market approaches for two distinct products. The case tests structural thinking, market analysis, and the ability to translate business model choices into operational implications across portfolio, innovation, and sales.
BASF Management Consulting was approached by the Head of one of BASF’s businesses (the Client). The Client shared with us the following information:
Historically all of their markets grew strongly – with BASF as innovation leader in top market position.
Since then, the markets have developed very differently. Some are growing, others shrinking in volume, some are commoditizing due to strong me-too competition from Asia. Sales approach is mostly global key account management.
To drive growth in this situation, the Leadership team decided to differentiate / innovate on business models.
Two business models that have been initially discussed as possibilities are:
- Commodities
- Specialties
Clarifying Information
Geographic Scope: Global
Products in focus:
- Precursor to Detergents Additives (PDA)
- Fiber Polymers
Customers: No change expected in customer needs
Deliverables: Provide transparency and strategic options for the following questions:
- How we can grow with the products in focus – by applying the right business model of Commodities (i.e. cost focus) OR Specialties (innovation and service focus)
- How can the new business models look like in terms of Product Portfolio & Innovation, Customer Segments & Channels, Pricing & Discounts