Internal Entrepreneurship at the Dow Chemical Company
MILAN MOHANTY
INTERNAL ENTREPRENEURSHIP AT THE DOW CHEMICAL COMPANY
Overview:-
The Dow Chemical Company is the second largest chemical manufacturer in the world in terms of revenue and in terms of market capitalization; it is the third largest in the world (as of 20071). There was a steady growth of the market from the year 2002. But before that the company faced a back drop in the profit margin. The company realized its growth in 2002 only after merging with Union Carbi as the company’s sells rose to $27.8 billion. Back in 1998, the company faced the real down turn of the sale to $18.4 billion. Then, for 4 years continuously, the company managed to keep the sales around $20 billion. In the year 2000, the company planned to adopt a different strategy to enhance the sales growth. This gave rise to the production and development of Epoxy.Com. This strategy not only enhanced the growth but also changed the status of the company in the market as an innovator in the field of agricultural products, chemicals and plastics. The primary responsible of the new strategy is to target the small customers, whom the company never served. The Epoxy products and intermediates are responsible for the production and sell of epoxy raisins that added to the manufacture of electrical laminates, composites and coatings. The new profit venture was managed from Dow’s European headquarters in Switzerland.
SWOT ANALYSIS:-
Strength:
* The new venture Epoxy was a high margin business with high capital intensive, as its 80% of the revenue came from top 20% customers. More over the venture established itself as a global profitable venture. They provided all sorts of technical help and discounts to the global customers which made them unique in the market and helped the venture to mark a base for the development. * The early realization of the boom of dot.com placed the venture in a comfortable position to take advantages of the early phase of e-market development. So the venture
INTERNAL ENTREPRENEURSHIP AT THE DOW CHEMICAL COMPANY
Overview:-
The Dow Chemical Company is the second largest chemical manufacturer in the world in terms of revenue and in terms of market capitalization; it is the third largest in the world (as of 20071). There was a steady growth of the market from the year 2002. But before that the company faced a back drop in the profit margin. The company realized its growth in 2002 only after merging with Union Carbi as the company’s sells rose to $27.8 billion. Back in 1998, the company faced the real down turn of the sale to $18.4 billion. Then, for 4 years continuously, the company managed to keep the sales around $20 billion. In the year 2000, the company planned to adopt a different strategy to enhance the sales growth. This gave rise to the production and development of Epoxy.Com. This strategy not only enhanced the growth but also changed the status of the company in the market as an innovator in the field of agricultural products, chemicals and plastics. The primary responsible of the new strategy is to target the small customers, whom the company never served. The Epoxy products and intermediates are responsible for the production and sell of epoxy raisins that added to the manufacture of electrical laminates, composites and coatings. The new profit venture was managed from Dow’s European headquarters in Switzerland.
SWOT ANALYSIS:-
Strength:
* The new venture Epoxy was a high margin business with high capital intensive, as its 80% of the revenue came from top 20% customers. More over the venture established itself as a global profitable venture. They provided all sorts of technical help and discounts to the global customers which made them unique in the market and helped the venture to mark a base for the development. * The early realization of the boom of dot.com placed the venture in a comfortable position to take advantages of the early phase of e-market development. So the venture