Strategic Entreneurship in Belgium: Solvay

Introduction

In 2013 Solvay will be celebrating its 150th anniversary (Solvay, 17.01.2013). Founded by Ernest Solvay in 1863, the company still is one of the major players in the chemical sector. The company’s main activities are the production of chemicals and plastics ( Wikipedia, 11.07.2013). With 29.100 employees in 55 different countries, Solvay really is a world leader in its activities( Wikipedia, 11.07.2013). But how is it possible that a company, that was founded in the 19th century, still is so successful after all these years? In this paper I will try to elaborate this question by explaining that Solvay is a good example of strategic corporate entreneurship. First I will divide Solvay’s history into five parts. For each of these parts I will explain how the company exploited opportunities, used resources and internal structure in their advantage.

1.A history of entrepreneurship

During its history, Solvay was always able to adapt to a changing environment by product diversification, the expansion to new markets and the stimulation of an entrepreneurial spirit within the company.

1.1. Ernest Solvay a man with a vision: 1863-1885

In the 19th century chemical industry was very new. The opportunities in this industry where still numerous and there was barely any competition. The strength that Solvay had was that he had invented a new and more efficient method for the production of soda ash. By using the Solvay-process the industrial production of soda ash became possible. Because this chemical was used in for the making of soap, textiles and glass the demand the demand for it was enormous. By the end of the 19th century Ernest Solvay did not only see opportunities in a new industry, he also so expanded to France, England, Germany, Russia and the United States ( Solvay, 08.07.2013).

1.2. Positioning as a good employer: 1885-1945

By the end of the 19th century there was a lot of discontent among the working class. In this context Solvay, who...