AkzoNobel Business Model
AkzoNobel uses a multi-brand business model to sell and supply its products globally, while Axalta Coating Systems relies on a service-led business model that focuses on providing services to various industrial and original equipment manufacturers (OEM) end-markets. Both companies use the acquisition strategy as part of their business models to expand their global footprint. Presented below are the full details of each company’s business model.
AkzoNobel Business Model
Description
- AkzoNobel is a focused paints and coatings manufacturing company relying on a multi-brand business model to market and distribute its products globally. It also deploys an acquisition business model to boost its presence in target markets, access new technologies, and generate synergies.
- The acquisitions focus on distributors and suppliers, manufacturers, etc., which collectively reinforce AkzoNobel’s position in its key markets. For example, in 2018, it added four distributors in the United Kingdom to enhance its Dulux Decorator Centers.
- AkzoNobel leverages digital innovation to streamline the process of choosing the right color; for instance, it uses Automatchic Vision (a precise color-matching tool) for auto bodyshops and Visualizer, a decorating app. Equally, its “AkzoNobel Incubator” program looks for innovative and disruptive opportunities, businesses, and services.
- Overall, AkzolNobel’s business model focuses on increasing investments in “innovation, sustainable solutions, organic growth, and bolt-on acquisitions,” to increase its return on investment and create long-term value for its stakeholders.
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Business Segments & Target Markets
- AkzoNobel is segmented into two primary business units, the performance coatings business that focuses on performance coatings technology and innovation, and the decorative business unit, which focuses mainly on its leading decorative brands.
- Its products are segmented by brand, industry, or product type/technology. Some industries include mining, vehicle refinishes, automotive, marine, etc. The types and technology sub-segments include aesthetics, metal care, linings, packaging (metal and non-metal), etc.
- AkzoNobel primarily targets the buildings and infrastructure end-user customers who serve the do-it-yourself (DIY) market and professional painters. The company also serves many industries, including Water, marine, automotive, furniture, and flooring, etc.
Metallic Coatings Products and/or Services
- AkzoNobel offers a wide range of metallic products and services designed for many industries, including marine, automotive, mining, oil & gas, etc.
- Some notable services include haptics for domestic appliances, packaging coatings for both metallic and non-metallic, antifouling and fouling control, etc.
Axalta Coating Systems Business Model
Description
- Axalta Coating Systems is a global coatings company dedicated to providing customers and businesses with innovative, colorful, and sustainable coatings solutions. A critical component of its business model is its ability to offer “critical functionality at a relatively low cost.”
- It essentially operates strong businesses; for instance, it claims to be a global leader in its market and has significant competitive advantages. Moreover, it says it focuses on structurally attractive markets, has a highly variable cost structure, and relies on a service-led business model.
- Axalta’s service-led business model focuses on providing services to bothrefinish and OEM end-markets, which include body shops (painter training, shop productivity, and shop layout) and OEM plants (paint mixing, line service, and technical) services.
- However, its refinish market uses a sell-through business model, in which Axalta has a direct relationship with body shops, while field service teams perform shop conversions. Likewise, technical teams deliver training, performance management services, while the call center manages client inquiries and requests.
- Overall, Axalta’s business model strategy includes using its market-leading products and solutions to grow within its existing markets and leveraging technology to expand into attractive nearby segments. The company also aims to grow in targeted industrial coatings businesses through organic growth and selective acquisitions, and focusing more on operational excellence and establish a practice of accountability.
Business Segments & Target Markets
- Axalta Coating Systems targets the structurally attractive global end-markets, which are transportation coatings for (light vehicle OEMs and commercial vehicles), and performance coatings for (industrial applications and refinish and aftermarket) segments.
- The company targets the structurally attractive global end-markets, which also form its core business areas, i.e., industrial, commercial vehicle, light vehicle, and refinish.
Metallic Coatings Products and/or Services
- Axalta provides metallic coatings products and services for OEMs of cars, light trucks, locomotives, high-speed trains, passenger carriages, light rail, tramways, high-performance cars, and mass transit cars.
- It also provides performance coatings for coils and surfaces of earth-moving equipment, sports equipment, and architectural structures.
Research Methodology
To identify the business models used by Axalta Systems Coating and AkzoNobel, your research team examined the financial and investor presentations published by the companies. We went on to explore their annual reports and websites, specifically the pages covering about how they operate, their business areas, and company information (About Us) page. These resources featured comprehensive data showing how their business models are winning in their target markets. For instance, their reports contained data focusing on their overall business performance, including the strategies they deploy and what business models work for them. Using these sources and leveraging the information they contain helped us provide the above business models analyses for Axalta Systems Coating and AkzoNobel. We looked at each company’s website products and services sections to find details about whether they offer metallic coatings products and/or services based on their business models. Overall, the analyses above feature full details of each company’s business model, including details of their business areas and segments.