Businessmodel of Dover Corporation

Customer Segments

Dover has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at firms in the waste/recycling, agricultural, defense, energy, automotive, commercial refrigeration, power generation, and chemical industries.

Value Proposition

Dover offers two primary value propositions: accessibility and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired hundreds of firms over time, including over 70 businesses between 1998 and 2002 and almost 25 firms between 2008 and 2012. This strategy has enabled it to expand its capabilities and diversify its portfolio.

The company has established a strong brand due to its success. It has 26,000 employees and generated annual revenues of $7 billion in 2015. It has also received a number of honors, including the Transatlantic Award from the American Chamber of Commerce in Italy, which recognizes businesses that have distinguished themselves in the development of transatlantic relations.

Channels

Dover’s main channels are its direct sales team with offices worldwide and various distributors. The company promotes its offering through its website and social media pages.

Customer Relationships

Dover’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Dover’s business model entails designing, developing, and manufacturing its products for its customers.

Key Partners

Dover’s key partners are the suppliers that provide it with the raw materials it needs to manufacture its products. The materials are primarily metals (copper, steel, aluminum, etc.) and semi-processed or finished components. It also maintains an alliance with the National Association of Manufacturers.

Key Resources

Dover’s main resources are its human resources, who include the engineers that design, develop, and manufacture its products and the salesforce that promotes them. It maintains important physical resources in the form of 162 manufacturing facilities and 120 warehouses as of December 2015.

Cost Structure

Dover has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of goods and services, a variable cost. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Dover has one revenue stream: revenues generated from its products and components to its customers. Sales are typically made through the forming of long-term contracts.