Innovation and evolution of business models in chemical industry

With the advent of meager profit age in globalized economy, demographic dividends have disappeared along with rising energy costs. As such, traditional chemical enterprises are impacted by technological and digital innovation. Besides, increasing competitive pressure has led many enterprises to shift their production to focus onto low-cost areas. Therefore, it is critical if enterprises can continue to survive with sustainable developments by improving business profits. To this end, this study has explored the business model development of a chemical company. The business model comprises of customer value proposition, key resources, key processes and profit model. The study aims to appreciate the business model development, strategic choice, and future trend of the case from the initial stage, innovation stage, and to expansion stage. As found in the study, the case that triggers the development of its business models has placed emphasis on the key resources and key processes in the initial stage. In the innovation stage, the case that emphasizes profit orientation has created and upheld high profits as well as rapid growth and innovation. Finally, the case that stresses customer value proposition has strived towards the goal of factory integration and profit sharing in the expansion stage.