Introduction
PPG Industries is a global manufacturer of paint and coatings, industrial and specialty materials, and building materials. With more than 70 manufacturing locations worldwide and operations in over 40 countries, the company produces in excess of 23 billion pounds (10 million metric tons) of raw materials annually. The company offers a broad range of products for markets including aircraft; appliance; automotive refinish; construction; consumer goods; appliances & fixtures; electronics assembly; food packaging; heavy truck original equipment manufacturer (OEM) refinish/replacement painting systems for automotive OEMs limited to Ford Motor Company and General Motors LLC – North American Plants only, Iveco Trucks SpA – South American Plant (both located in Argentina), Navistar International Corporation’s International Truck & Engine Corporation Usa Division Plant (located in Columbus Ohio USA), Nexteer Automotive Incorporated’s Auburn Hills Michigan USA plant only as well as their plants located throughout Europe including France Germany Spain Sweden etc., motorcycle/ATV aftermarket companies that include Harley Davidson Motorcycles Incorporated based out of Milwaukee Wis United States Of America with their plants located around the world such as Australia Brazil Canada Mexico Indonesia Thailand Vietnam India Malaysia Philippines Taiwan Thailand Indonesia Vietnam India Malaysia Philippines Taiwan New Zealand Bangladesh Columbia Ecuador Peru Venezuela Chile Ecuador Peru Venezuela Chile Guatemala Honduras Nicaragua El Salvador Panama Costa Rica Belize Cayman Islands Jamaica Trinidad And Tobago Paraguay Uruguay Brazil Colombia Ecuador Peru Venezuela Chile Guatemala Honduras Nicaragua El Salvador Panama Costa Rica Belize Cayman Islands Jamaica Trinidad And Tobago Paraguay Uruguay Aruba Barbados Bahamas British Virgin Islands Cayman Islands Curacao Dominican Republic French Guiana Guyana Haiti Martinique Montserrat Netherlands Antilles St Kitts And Nevis St Lucia St Vincent Suriname Trinidad And Tobago Turks Caicos Arabs
Business Model
PPG Industries is a diversified global coatings and specialty materials company. PPG has a long history of innovation and is a leader in the development and manufacture of high-performance coatings, sealants, and materials used in transportation, construction, industrial, and consumer markets.
PPG’s product portfolio includes coatings for cars; protective coatings for floors; specialty surfaces such as glass mirrors or metal substrates; architectural systems such as cladding glass facades; automotive components (e.g., windshields); safety products (reflective tapes); adhesives & sealants; digital printing supplies (expertise related to UV curable inks).
Revenue & Profits
PPG Industries has a steady track record of revenue and profit growth over the past several years. In 2016, PPG Industries revenue grew by 9% to $36.9 billion and net income grew by 15% to $2 billion.
PPG Industries revenue has been growing at a healthy rate for about five years now, but profits have been flat recently and even saw a dip in 2017 as a result of higher commodity costs (steel, aluminum) used in production along with rising interest rates that increased financing costs for PPG’s debt-heavy balance sheet.
Value Propositions
PPG Industries has a strong value proposition. It has a strong brand, reputation and product portfolio. The company operates in the US, Europe, Asia and Latin America. PPG Industries also has an extensive distribution network which includes distributors, dealerships and service stations.
PPG’s financial performance is also impressive with total revenue growing by 10% YoY in 2018 to $13 billion USD with operating margin at 40%.
Customer Segments
PPG Industries has a wide range of customers, including the automotive, aerospace, and construction industries; energy companies; electronics manufacturers; and coatings customers.
Channels
To help you better understand PPG Industries’ business model, we’ll be looking at the channels that the company uses to reach its customers. Channels are the ways in which a company provides products and services to its customers.
- Automotive Coatings: This channel includes both automotive refinish coatings and OEM (Original Equipment Manufacturer) coatings. These are designed to resist scratching, fading, chipping and other damage. The automotive industry is vital to PPG Industries’ success because it accounts for roughly 40% of revenue generated by sales of coatings products worldwide.
- Architectural Coatings: This channel includes architectural glass, decorative glass and protective films for commercial buildings such as storefronts or windows in big box stores like Wal-Mart or McDonald’s restaurants where you might see a lot of one-way mirrors being used instead of actual glass panes because they’re cheaper than regular windows would be; they also use less energy during heating/cooling seasons because they don’t let through much light so they don’t require any additional heaters or air conditioning units installed inside their facilities; this makes them more environmentally friendly which brings me back around full circle again into my opening paragraph up above about how important it is for us all today who live back here on Earth now together as humans living together on this planet called Earth today!
Customer Relationships
An important part of PPG Industries’ strategy is managing customer relationships. The company has a customer relationship management (CRM) system, which helps it keep track of customers and communicate with them in a timely manner. For example, if a customer calls in to the company’s 800 number because they’re having trouble with their car or home renovation project, the call center representative can look up that person’s information using the CRM system so they know exactly what needs to be done for that person’s particular situation.
Key Activities
PPG Industries is a manufacturer and supplier of coatings and specialty materials. In addition to coatings, the company produces glass, chemicals, fibers and other products used in industrial applications.
PPG Industries has a presence in over 70 countries through its subsidiaries that produce high-quality paints, glass coatings for automobiles and commercial vehicles as well as architectural glazing systems for buildings around the world. PPG Industries also produces industrial pigments that are used in consumer products such as cosmetics or food packaging; automotive refinishes; consumer plastics such as decorative trim pieces on automobiles; metalworking fluids for use in manufacturing processes like machining tools; adhesives; sealants; forest products (including wood stains); medical equipment coatings (for example transdermal patches); dental materials such as porcelain veneers for repairing broken teeth); abrasive blasting compounds (used by shipyards or construction companies working on bridges).
Key Resources
PPG Industries has a wide variety of resources to help them succeed in the market. There are many different types of resources that make up the PPG Industries business model, including:
- The company’s product offerings, which includes paint, coatings, glass and construction chemicals.
- Its employees.
- The company’s relationships with suppliers and customers.
Key Partners and Suppliers
- Key suppliers. PPG Industries has many key suppliers who help them deliver their products and services to customers.
- Partners. There are also a number of partners that work with PPG Industries to accomplish their goals together. For example, one of the company’s partners is Toyota Motor Corporation who collaborates with PPG Industries on the development of new materials for cars and other vehicles.
- Key supplier or partner? You can decide which term you prefer to use in your sentence depending on whether you’re talking about a specific partner or supplier: “PPG has key partners/suppliers.” But if you’re talking about all of them, then it might be better just say something like: “PPG relies heavily on its key suppliers/partners.”
Cost Structure and Profit Margin
The cost structure of PPG Industries, and R&D, marketing and sales are the primary factors in determining its profit margin.
When you look at a company’s operating costs on a per-unit basis, they are often referred to as the “cost structure.” The cost structure shows what percentage of revenue goes toward things like product manufacturing or delivery costs. In other words, it tells you how much money is spent on things that are necessary to make each product or service sold. One example is research and development (R&D), another would be marketing or advertising efforts that help promote your available products—this might include print ads in magazines or radio spots on local stations where customers can hear about various offerings available from your company (think commercials).
In addition to those expenses associated with producing goods or delivering services for sale, there may also be overhead costs associated with running an office building where employees work together every day performing their jobs; these could include utilities like water supply lines running through every floor along with heating/cooling systems used throughout different rooms in this building. Then there are salaries paid out annually because certain employees need more than just basic training when starting out–therefore requiring extra training sessions before starting work full time during initial employment contracts signed by both employee candidates along with managers overseeing them directly related tasks performed daily within company operations functions.”
In this article, we will discuss PPG Industries business model and its features.
PPG’s products are sold in more than 140 countries and territories through 10,000 distribution locations worldwide. The company is made up of four business segments:
- Coatings
- Specialty Materials
- Industrial Finishing
- Engineered Materials
Conclusion
In this article, we will discuss PPG Industries business model and its features.
