BASF Business Model | Business Model Navigator

Overview:

BASF SE is a German chemical company and the largest chemical producer in the world. The BASF Group comprises subsidiaries and joint ventures in more than 80 countries and operates six integrated production sites and 390 other production sites in Europe, Asia, Australia, the Americas and Africa. Its headquarters is located in Ludwigshafen, Germany. BASF has customers in over 190 countries and supplies products to a wide variety of industries. Despite its size and global presence, BASF has received relatively little public attention since it abandoned manufacturing and selling BASF-branded consumer electronics products in the 1990s. At the end of 2015, the company employed more than 122,000 people, with over 52,800 in Germany alone. In 2015, BASF posted sales of €70.4 billion and income from operations before special items of about €6.7 billion. The company is currently expanding its international activities with a particular focus on Asia.

Industries:

Chemicals

Industrials

Similar firms (based on pattern co-occurrence):

2 shared patterns

Business Model Patterns:

License

How they do it: BASF licenses certain patent portfolios to partners, e.g. in the area of battery technology.

Make More Of It

How they do it: At BASF, production plants are intricately connected through BASF’s Verbund (network) sites so that raw materials can be used efficiently and by-products from one stage integrated seamlessly into another stage. BASF frequently works with subsidiaries and occasionally also with external partners at its Verbund sites. They become natural customers for its by-products, thereby generating additional revenues for BASF.

Performance-based Contracting

How they do it: BASF has been using ”Performance-based Contracting” since the late 1990s for ‘cost per unit’ models in their ”Coatings” division. The cost of vehicle coatings is calculated per item (or module) coated, rather than by the amount of paint used. BASF has taken on some of the responsibility of finishing cars by lending its support to customers in situ and assisting them in improving their efficiency. Any savings achieved from using the finish more economically are split between customers and companies, resulting in a win–win situation.

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