The polyacrylamide industry has expanded tremendously in the last few years with increased demand from numerous sectors, such as mining, oil and gas, water treatment, and paper-making. Business firms operating in the polyacrylamide industry are employing different strategies to remain competitive and capitalize on the improving opportunities as the industry continues to expand. These strategies focus on R&D investments, strategic partnerships, mergers and acquisitions, and diversification into new industries or geographies.
- Mergers and acquisitions (M&A)
Firms looking to expand their share of the industry and enhance their abilities now see mergers and acquisitions as a key strategy. Through taking over competing companies or merging with other companies already operating in the industry, a business can increase its industry share, production capacity, and diversification. For example, a polyacrylamide manufacturer might seek to purchase a technologically advanced regional competitor to gain new customers, assets, and proprietary distribution technology. Firms can consolidate to become industry leaders and grow efficiently. In this case, M&A facilitates greater efficiency through competition reduction and entering new industry segments. As the need for polyacrylamide in water treatment and oil recovery increases, larger firms seek to purchase smaller firms that offer complementary services or expertise in niche specializations.
- Strategic Alliances and Cooperation
Collaboration and the signing of a strategic agreement are other steps that firms must take to keep up with the pace of globalization that is transforming the world with each passing second. Other conglomerates, universities, and even other industries can help a polyacrylamide producer who needs more innovation and higher quality by sharing their knowledge with other polyacrylamide industry leaders.
In order to address the increasing demand for green products, for instance, businesses can collaborate with universities to provide cutting-edge, eco-friendly polyacrylamide products. The creation of new technologies, such as biodegradable polyacrylamides, that comply with legal standards as well as solve environmental problems may be the outcome of such partnerships. There are also chances to collaborate with end-use industries like oil recovery or water treatment that may enable polyacrylamide producers to learn about changing consumer trends and adapt their products accordingly.
- Research and Development (R&D) costs
All growth strategies in the polyacrylamide sector will require research and development expenditure. Firms are pouring money into product development, recipe upgrading, and process line modification as a result of the rise in high-performance polyacrylamide demand. Firms can remain ahead of the game in terms of technology and build custom solutions to meet every client's needs by investing in research and development. An oil and gas application firm, for instance, may invest in research and development to manufacture polyacrylamide products that increase the efficiency of water injection or hydraulic fracturing operations. Companies these days are looking into novel formulations for water treatment applications that have a higher flocculation but with less risk and environmental sensitivity.
- Diversification into New Industry’s and Regions
Diversification into new industry and regions is another shrewd business move for those firms seeking to sustain a competitive edge as the polyacrylamide industry expands. Polyacrylamide manufacturers have unexploited potential in new industry like textiles (for application in dyeing processes) and agriculture (for soil treatment). Firms can expand the range of products they offer and diversify from the conventional industry by expanding into such industry. Geographically, firms are trying to penetrate emerging industry, particularly the Asia-Pacific and Latin America region, where industrialization and urbanization are driving the demand for polyacrylamide in mining, water treatment, and other applications. It can acquire long-term streams of income and enjoy initial entry to quickly growing industry if a company establishes a presence within those industry.
The polyacrylamide industry is competitive, with the players constantly searching for new avenues to maintain and increase their industry share. Players are setting themselves up for long-term success with mergers and acquisitions, strategic partnerships, R&D investments, and growth in new industry and geographies. With these initiatives, manufacturers can remain one step ahead of the competition, respond to their customers' changing needs, and establish themselves in the growing global polyacrylamide industry.
Sources:
Company: Spherical Insights
Research org: Research gate
