Often when you think about business models, you think about how technology and money fit into all of the required processes. But every once in a while it’s not a bad idea to look at business models from a different perspective. One example that might come to mind is if you’re looking at models that deal with chemical or fuel components.
Businesses may need broad-based chemicals. The auto industry relies heavily on how well the prices of gasoline are being regulated. Almost all major industrial businesses rely to some degree on worldwide oil production. And the processing of plastic products also is going to be based on resources involving chemicals and fuel.
Some companies sell surfactant chemicals as their production bottom-line. They have all of the industrial components in place to produce the raw materials that will eventually be used by companies that need agrochemicals, home care chemicals, paints, or even personal products. Chemicals are everywhere, and as much as naturalists and purists rally against them, they’re really just an essential part of a lot of business models that produce everyday products for billions of people around the world.
The Auto Industry
The auto industry lives and dies based on fuel costs. When the price of gasoline fluctuates, the cars that people buy or drive can change drastically. When laws and regulations vary surrounding gas and other fuel components, similar ripples of change work their way through car manufacturing and even travel industries. In addition, chemicals are used extensively in the production of all the pieces of automobiles themselves. So there’s really no way to separate the auto industry from the pricing models of various raw substances that have to come through chemical production companies.
Worldwide Oil Requirements
Even though you’d think it would have stabilized at some point in the modern world, global oil prices and transport options can change drastically and quickly because of different world events. Any industry that has a supply of oil coming into it can be directly affected by changes that can occur in world politics or international law.
Plastic is made from oil. Plastic is made from other chemicals. Any business that has a model where they have to convert these oil and chemical substances into plastic is going to be tied to the supply chain and pricing structure of the global village economy. Entire plastic business models are based entirely on the fact that a consistent supply of raw materials has to be delivered through a chain to ultimately make all of the products that come out on the supply side. Being aware of slight shifts in production technology will often help businesses adapt to changing world circumstances as well.