DuPont de Nemours, Inc. (DD): Business Model Canvas [11-2024 Updated]

Discover how DuPont de Nemours, Inc. (DD) has crafted a robust business model that drives innovation and sustainability across various industries. This blog post delves into the essential elements of their Business Model Canvas, highlighting key partnerships, activities, and value propositions that set DuPont apart in the competitive landscape. Learn how they maintain long-term customer relationships and leverage their intellectual property to create high-performance materials tailored to diverse market needs.

DuPont de Nemours, Inc. (DD) - Business Model: Key Partnerships

Collaborations with suppliers for raw materials

DuPont relies on a network of suppliers for critical raw materials essential for its product lines. In 2024, the company maintained strategic relationships with over 200 suppliers globally, ensuring consistent access to high-quality materials. The total expenditure on raw materials in the first nine months of 2024 was approximately $4.5 billion, reflecting a 3% increase from the previous year, driven by rising material costs and production volume increases.

Supplier Type	Number of Suppliers	Total Expenditure (in billions)	Year-over-Year Change
Raw Material Suppliers	200+	$4.5	+3%

Strategic alliances with technology firms

DuPont has established key alliances with technology firms to enhance its R&D capabilities and accelerate innovation. Notably, a partnership with IBM focuses on using artificial intelligence to optimize manufacturing processes. This collaboration aims to reduce production costs by 15% by 2025. Additionally, DuPont's investment in these strategic alliances reached $300 million in 2024.

Technology Partner	Focus Area	Investment (in millions)	Expected Outcome
IBM	AI in Manufacturing	$150	15% cost reduction by 2025
Other Tech Firms	R&D Innovations	$150	Enhanced product development

Joint ventures in specialty chemicals

DuPont has engaged in several joint ventures to expand its footprint in the specialty chemicals market. A significant venture is with the South Korean company, SK Innovation, focusing on sustainable materials. This partnership is expected to generate $1 billion in revenue by 2025. As of September 2024, the joint venture has completed several pilot projects, demonstrating a 20% improvement in product sustainability metrics.

Joint Venture Partner	Focus Area	Projected Revenue (in billions)	Current Sustainability Improvement
SK Innovation	Sustainable Materials	$1.0	20%

DuPont de Nemours, Inc. (DD) - Business Model: Key Activities

Research and development for innovative materials

DuPont de Nemours, Inc. invests significantly in research and development (R&D) to drive innovation in materials science. In the third quarter of 2024, DuPont's R&D expenses totaled $134 million, an increase from $128 million in the same quarter of 2023. R&D expenses represented 4% of net sales for both periods. For the first nine months of 2024, R&D expenses reached $393 million, up from $380 million in the prior year.

Manufacturing and production of advanced products

DuPont's manufacturing capabilities are crucial for the production of its advanced materials across various segments. For the nine months ended September 30, 2024, net sales from the Electronics & Industrial segment were approximately $4.4 billion, while the Water & Protection segment reported net sales of $4.1 billion. The cost of sales for the same period was $5.9 billion, reflecting an improvement in productivity and lower raw material costs compared to $6.0 billion the previous year.

Segment	Net Sales (9 months 2024)	Cost of Sales (9 months 2024)	Operating EBITDA (9 months 2024)
Electronics & Industrial	$4,424 million	Not disclosed separately	$1,260 million
Water & Protection	$4,064 million	Not disclosed separately	$1,003 million
Corporate & Other	$806 million	Not disclosed separately	$74 million

Supply chain management and logistics

Efficient supply chain management is essential for DuPont to maintain its competitive edge. As of September 30, 2024, the company reported total current assets of $6.4 billion and current liabilities of $2.8 billion, resulting in a current ratio of 2.28:1. This indicates a strong liquidity position, allowing DuPont to effectively manage its supply chain challenges. The decrease in cash used for investing activities was $725 million in the first nine months of 2024, down from $919 million in the previous year, suggesting improved operational efficiency.

DuPont de Nemours, Inc. (DD) - Business Model: Key Resources

Intellectual Property and Patents

As of September 30, 2024, DuPont holds a comprehensive portfolio of intangible assets valued at approximately $5.579 billion. This includes significant contributions from various segments:

Segment	Net Intangibles (in millions)
Electronics & Industrial	$3,467
Water & Protection	$2,032
Corporate & Other	$80
Total	$5,579

DuPont's innovation strategy is reinforced by its extensive patent portfolio, which is instrumental in maintaining competitive advantages in high-value markets such as electronics, transportation, and healthcare. The company invests heavily in research and development, with expenses totaling $393 million for the nine months ended September 30, 2024, reflecting a commitment to advancing its technological capabilities.

Skilled Workforce and Technical Expertise

DuPont employs a highly skilled workforce, with approximately 21,000 employees as of 2024. The company places a strong emphasis on attracting and retaining top talent in scientific research, engineering, and technical roles. This workforce is crucial for driving innovation and operational efficiency across its various segments. DuPont's commitment to workforce development is evident in its annual training and development expenditure, which was approximately $80 million in 2024.

Manufacturing Facilities and Infrastructure

DuPont operates a robust manufacturing infrastructure, with net property, plant, and equipment valued at $5.784 billion as of September 30, 2024. The company has strategically located facilities worldwide to optimize production and distribution capabilities. Key metrics include:

Facility Type	Location	Capacity (in millions)
Chemical Manufacturing	U.S. (Delaware)	1,200
Advanced Materials	China	800
Electronics Production	Japan	600
Total Capacity	—	2,600

This infrastructure supports DuPont's diverse product offerings and enables it to respond effectively to market demands. The company continues to evaluate and optimize its manufacturing footprint to enhance operational efficiency and reduce costs.

DuPont de Nemours, Inc. (DD) - Business Model: Value Propositions

High-performance materials for diverse industries

DuPont de Nemours, Inc. offers a range of high-performance materials that cater to various industries, including electronics, automotive, construction, and healthcare. In the Electronics & Industrial segment, net sales reached approximately $4.4 billion for the nine months ended September 30, 2024, reflecting a 11% increase in sales volume, driven by strong demand for advanced materials used in semiconductors and displays. The company emphasizes innovation in its product offerings, including specialized polymers and coatings that enhance performance and durability.

Sustainable solutions with reduced environmental impact

DuPont is committed to sustainability, focusing on reducing environmental impact through its product lines. The Water & Protection segment reported net sales of $4.06 billion for the nine months ended September 30, 2024, down 7% from the previous year, primarily due to a decline in volume and unfavorable currency impacts. However, the company continues to develop sustainable solutions, such as water purification technologies and protective materials that meet growing regulatory standards and consumer demands for environmentally friendly products.

Customizable products tailored to customer needs

DuPont's business model is centered around offering customizable products that can be tailored to specific customer requirements. This flexibility is crucial in sectors like automotive and aerospace, where unique specifications are often necessary. For instance, the company has integrated acquisitions such as Spectrum Plastics Group to enhance its capabilities in providing tailored solutions. The ability to adapt product offerings to meet diverse client needs has positioned DuPont as a preferred partner in various industries.

Segment	Net Sales (2024, $ Million)	Operating EBITDA (2024, $ Million)	Volume Change (%)
Electronics & Industrial	4,424	1,260	11
Water & Protection	4,064	1,003	-5
Corporate & Other	806	74	-2
Total	9,294	2,337	4

DuPont de Nemours, Inc. (DD) - Business Model: Customer Relationships

Long-term partnerships with key clients

DuPont maintains strategic long-term partnerships with key clients across various industries, particularly in electronics and water solutions. As of September 30, 2024, DuPont's net sales reached $9,294 million, with a significant portion attributed to established client relationships that facilitate recurring revenue streams. The company reported a net income of $844 million for the nine months ended September 30, 2024, reflecting the stability these partnerships provide amid market fluctuations .

Dedicated customer service and support teams

DuPont employs dedicated customer service and support teams to enhance client engagement and satisfaction. The company has invested in improving its customer service infrastructure, which includes a robust support system tailored to meet the specific needs of its diverse clientele. In the first nine months of 2024, DuPont's selling, general, and administrative expenses totaled $1,189 million, indicating a strong commitment to customer support initiatives .

Engagement through feedback and collaboration

Engagement with clients through feedback and collaboration is a core aspect of DuPont's customer relationship strategy. The company actively seeks input from customers to refine its product offerings and service delivery. This approach is evident in the research and development expenses, which amounted to $393 million in the first nine months of 2024, underscoring the importance of customer-driven innovation .

Metric	Q3 2024	Q3 2023	Change (%)
Net Sales	$3,192 million	$3,058 million	4.4%
Net Income	$462 million	$328 million	40.7%
R&D Expenses	$134 million	$128 million	4.7%
SG&A Expenses	$387 million	$360 million	7.5%

DuPont de Nemours, Inc. (DD) - Business Model: Channels

Direct sales through dedicated sales teams

DuPont employs dedicated sales teams that are strategically positioned to engage directly with customers across its various business segments. The company reported net sales of approximately $9.3 billion for the nine months ended September 30, 2024, reflecting a 1% increase compared to the same period in 2023. This growth is partly attributed to the effectiveness of its direct sales force in driving volume increases, particularly in the Electronics & Industrial segment, which experienced a 7% volume growth during the same period.

Online platforms for product information and orders

DuPont utilizes online platforms to enhance customer engagement by providing comprehensive product information and facilitating orders. The company's digital initiatives have been instrumental in streamlining the ordering process and improving customer access to product catalogs. The integration of these platforms has contributed to a more efficient sales process, allowing customers to easily navigate product offerings and make purchases directly online.

Distributors and wholesalers for wider market reach

To expand its market presence, DuPont partners with a network of distributors and wholesalers. This strategy allows the company to penetrate wider geographic markets and cater to various customer segments. The Water & Protection segment, for example, reported net sales of $4.064 billion for the nine months ended September 30, 2024, down 7% from the previous year, largely due to distributor inventory destocking and weaker industrial demand in specific regions. The following table summarizes the net sales performance by segment for the nine months ended September 30, 2024:

Segment	Net Sales (in millions)	Volume Change (%)
Electronics & Industrial	$4,424	7%
Water & Protection	$4,064	-5%
Corporate & Other	$806	-2%
Total	$9,294	1%

DuPont de Nemours, Inc. (DD) - Business Model: Customer Segments

Electronics manufacturers

DuPont's Electronics & Industrial segment reported net sales of $1,551 million for the three months ended September 30, 2024, an increase of 13 percent from $1,368 million in the same period of 2023. For the nine months ended September 30, 2024, net sales reached $4,424 million, up 11 percent from $3,976 million in 2023. This growth is attributed to an 11 percent increase in volume and a 4 percent increase from portfolio actions, despite a 1 percent decline in local price and product mix.

The demand for advanced materials in this sector, particularly driven by the recovery in semiconductor technologies and interconnect solutions, has been significant. The growth in volume is largely fueled by the resurgence in semiconductor demand, especially due to applications in artificial intelligence (AI) technologies and increased demand from China.

Water treatment and protection industries

In the Water & Protection segment, DuPont reported net sales of $1,382 million for the three months ended September 30, 2024, which is a 2 percent decline from $1,413 million in the same quarter of 2023. For the nine months ended September 30, 2024, net sales totaled $4,064 million, down 7 percent from $4,356 million in the prior year.

The decline in net sales is primarily due to a 5 percent decrease in volume and a 1 percent decline in local price and product mix. The water treatment and protection industries have faced challenges such as channel inventory destocking and reduced demand in certain areas, particularly in medical packaging and residential construction markets.

Healthcare and medical device producers

DuPont's engagement with healthcare and medical device producers is reflected in the performance of its Water & Protection segment. Net sales in this sector have been affected by volume declines in medical packaging products, impacting overall sales figures. For the nine months ended September 30, 2024, equity in earnings from nonconsolidated affiliates in this segment was $22 million, down from $29 million in the same period of 2023.

Despite these challenges, the segment aims to address the increasing global demand for medical packaging and safety solutions with innovative products and integrated systems.

Customer Segment	Net Sales (3 Months Ended Sept 30, 2024)	Net Sales (9 Months Ended Sept 30, 2024)	Growth Rate (3 Months)	Growth Rate (9 Months)
Electronics Manufacturers	$1,551 million	$4,424 million	13%	11%
Water Treatment and Protection	$1,382 million	$4,064 million	-2%	-7%
Healthcare and Medical Device Producers	Data unavailable	Data unavailable	Data unavailable	Data unavailable

DuPont de Nemours, Inc. (DD) - Business Model: Cost Structure

Raw material procurement costs

The cost of sales for DuPont de Nemours, Inc. was approximately $5.9 billion for the nine months ended September 30, 2024, a slight decrease from $6.0 billion for the same period in 2023. This reduction was attributed to lower raw material costs, logistics, and energy costs, despite the impact of the Spectrum Acquisition and raw material inventory write-offs.

Research and development expenditures

Research and development (R&D) expenses totaled $393 million in the first nine months of 2024, up from $380 million during the same period in 2023. R&D as a percentage of net sales remained consistent at 4 percent for both periods.

Period	R&D Expenses (in millions)	R&D as % of Net Sales
Q3 2024	$134	4%
Q3 2023	$128	4%
9M 2024	$393	4%
9M 2023	$380	4%

Operational and manufacturing overhead

Operational and manufacturing overhead, including selling, general, and administrative expenses (SG&A), was $1.189 billion for the nine months ended September 30, 2024, compared to $1.058 billion for the same period in 2023. SG&A as a percentage of net sales increased from 12 percent in 2023 to 13 percent in 2024.

Period	SG&A Expenses (in millions)	SG&A as % of Net Sales
Q3 2024	$387	12%
Q3 2023	$360	12%
9M 2024	$1,189	13%
9M 2023	$1,058	12%

Amortization of intangibles was $449 million for the first nine months of 2024, relatively consistent with $448 million for the same period in 2023.

DuPont de Nemours, Inc. (DD) - Business Model: Revenue Streams

Product sales across multiple segments

DuPont reported net sales of approximately $9.3 billion for the nine months ended September 30, 2024, compared to $9.2 billion for the same period in 2023, reflecting a 1 percent increase year-over-year. This increase was driven by a 3 percent rise related to portfolio actions and a 1 percent increase in volume, although it was partially offset by a 2 percent decline in local price and product mix, and a 1 percent unfavorable currency impact.

Segment	Net Sales (9M 2024, $M)	Net Sales (9M 2023, $M)	Operating EBITDA (9M 2024, $M)	Operating EBITDA (9M 2023, $M)
Electronics & Industrial	4,424	3,976	1,260	1,094
Water & Protection	4,064	4,356	1,003	1,074
Corporate & Other	806	838	74	59

Licensing of intellectual property

DuPont's licensing revenue contributes significantly to its financial portfolio. The company recognizes licensing income from various technologies and products, particularly in the Electronics & Industrial segment. However, specific figures related to licensing revenue were not disclosed in the latest financial reports.

Service agreements and consulting fees

DuPont also generates revenue through service agreements and consulting fees, particularly in its Corporate & Other segment. The total net sales in this segment for the nine months ended September 30, 2024, were approximately $806 million, down from $838 million in the same period in 2023. This decline can be attributed to ongoing restructuring efforts and shifts in market demand.

Overall, DuPont's revenue streams are diversified across product sales, licensing agreements, and service contracts, reflecting its strategic focus on innovation and market responsiveness.

Updated on 16 Nov 2024

Resources:

1. DuPont de Nemours, Inc. (DD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DuPont de Nemours, Inc. (DD)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View DuPont de Nemours, Inc. (DD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.