Businessmodel of Celanese

Customer Segments

Celanese has a mass market business model, with no significant differentiation between customer groups. The company targets its offerings at firms in a wide range of industries that need materials – ranging from automotive to paints/coatings to consumer electronics to food/beverage.

Value Proposition

Celanese offers three primary value propositions: innovation, risk reduction, and brand/status.

The company has embraced innovation throughout its history. Examples of recent groundbreaking products include CelFX technology for tobacco filtration, TCX technology for ethanol creation, and the Sunsation platform for sweet-taste solutions.

The company reduces risk by maintaining high safety and security standards. It maintains an Ethics Helpline, through which it invites customers and employees to call and report any possible violations of company ethics. The hotline is supervised by an independent, third-party provider. All submitted reports are investigated by Celanese’s Compliance Office.

The company has established a strong brand due to its success. It is one of the largest producers of acetyl products and high performance engineered polymers in the world. It employs 7,000 employees and generated sales of $5.7 billion in 2015.

Channels

Celanese’s main channel is its direct sales team. The company promotes its offering through its website, social media pages, and participation in trade shows and conferences.

Customer Relationships

Celanese’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. The company’s website provides access to an e-mail newsletter with information on new product releases and company news and events. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Celanese’s business model entails designing, developing, and manufacturing its products.

Key Partners

Celanese’s key partners are the suppliers who provide the equipment and materials it needs to run its operations. The company also maintains important partnerships with “strategic affiliates”, firms that have similar business models, products, applications, and manufacturing technology. It works with these firms to expand its customer base and reduce costs. Specific affiliates include:

• National Methanol Company
• Korea Engineering Plastics
• Polyplastics Co.
• Forton Industries
• Kunming Cellulose Fibers
• Nantong Cellulose Fibers
• Zhuhai Cellulose Fibers ### Key Resources

Celanese’s main resources are its human resources, who include the scientists, engineers, product developers, and operators that design, develop, and manufacture its products. It depends heavily on physical resources in the form of its network of 27 production facilities located throughout North America, Europe, and Asia, in cities from Amsterdam to Dallas to Shanghai.

Cost Structure

Celanese has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of sales, a variable expense. Other major drivers are in the areas of sales/marketing, administration, and research development, all fixed costs.

Revenue Streams

Celanese has one revenue stream: revenues it generates from sales of its products to its customers.