From a competitiveness standpoint, the two sectors of the chemical industry being discussed could not be more different. The commodity chemical industry is highly competitive. The products of most manufacturers are considered by the consumer to be equivalent, making this market highly price competitive. Economies of scale and manufacturing efficiencies are paramount to a successful company in this sector. Within the specific type of commodity chemical, however, there are usually only a few, big manufacturers of each chemical.
Specialty chemicals depend more on the product.
Here companies with the best product are the successful ones. A successful research and development department is the key in specialty chemical. Wright Killen surveyed 100 executives from 57 petrochemical firms. Petrochemical falls into the commodity chemical sector. Petrochemical leaders believe they have already identified the technology that compliance will require,' says their survey.