Industrial Producers
Many industrial producers think primarily in terms of geographic coverage before considering distinct market or customer segments. But market segments and customer segments must be identified in order to develop an accurate product, service and pricing framework. And it is this step that many industrial producers fail to take.
Industry-Specific Business Model
Industrial producers like those that manufacture industrial rubber products often define their own business model, the way the product is delivered, marketed and priced, and the way it is integrated into the larger industry, rather than aligning with the prevailing business models of their competitors.
Industry-specific business models result in different financial incentives for business owners, and, in turn, different business models and revenue expectations. There are four major types of industry-specific business models: "non-distributed," "distributed" and "remote."
Industry-specific business model "non-distributed" refers to an industry that is controlled by the small number of large, capitalized players who are the gatekeepers of all of the market access, prices and distribution.
Industry-specific business model "distributed" refers to an industry where the large players control the bulk of the market. "Remote" refers to the industry where there are many small players, but most of the price discovery and distribution are done by large, centralized players.