The transformation of Lanxess : a successful response to a changing industry

• Autor(a) principal: Stoyanova, Nelli
• Data de Publicação: 2018
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/26892
• topic: Business transformation; Turnaround strategy; Strategic plan; Industry challenges; Overcapacity; Joint venture; Transformação de negócios; Estratégia de recuperação; Plano estratégico; Desafios da indústria; Excesso de capacidade; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

In today's globalized world, companies are constantly exposed to changes in their environment. These changes can be highly diverse and serious. Changes in certain factors can affect the attractiveness of an industry and have an impact on the profitability of companies. Factors such as new competitors, capacity expansions, and a decline in demand can provoke overcapacity, leading to an unattractive industry. Overcapacity is a problem that frequently occurs in mature and capital -intensive industries, such as the chemical one. This typically results in increased competition and thus to reduced profitability for companies in the industry. Players who want to survive need to act against the declining profitability and transform to competitive companies. Literature and practice have shown that a joint venture can significantly improve the competitive position of companies and thus allow them to become profitable again. In order to combine literature and practice, the real-life example Lanxess was used to illustrate the emergence of overcapacity, its consequences and how to deal with them. Lanxess has achieved a successful transformation. A joint venture that helped Lanxess to integrate itself backwards and provide it with competitive prices for its raw materials, has been the main contributor to its success. As a result, Lanxess has successfully positioned itself and experienced an upturn in profitability.