Monsanto Pros And Cons

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Attempt to associate more strongly with Monsanto and sell over 90 percent Round-Up Ready herbicide. Pros: Rapidly growing market share of Round-Up Ready Profit Margins are high, Rebates and incentives Monsanto is growing its distribution network with retailers. It already has agreed to 200 companies to give license and with other acquisition arrangements by Monsanto are undergoing which might also acquire Dairy Land. Due to this situation market may become saturated. Cons: This is against the core values and positioning of Dairy Land because Dairy Land focuses on high yielding crops while Monsanto focuses on specific traits. The companies who had prior contractual agreements are not required to pay Monsanto a 6.50$/bag technology fees. However these firms charge this …show more content…

Cons: DuPont and Monsanto are in competition with one another which results in either both take back license from Dairy Land or one of them might make an alliance with competitor of Dairy Land No specific relation with DuPont and Monsanto Continuing with the same weak distribution channel Farmers brand loyalty of STS is decreasing and economical focus increasing Alternative 3: Attempt to associate more strongly with DuPont and focus on STS Pros: Dairy Land is market leader in Alfalfa while DuPont’s acquired company Pioneer is market leader in corn resulting in increase in market share as collective Pioneer’s distribution network is strong, Dairy Land can use Pioneer’s distribution network to increase market share Dairy Land was the first company (First Mover Advantage) to get STS technology from DuPont DuPont does its market activities aggressively on electronic and print media which can also be beneficial to Dairy Land DuPont is fast reactive as a competitor, when Monsanto’s sales started increasing; DuPont also started giving price cut of 70% indicating that DuPont still want to compete in market with STS technology Cons: STS sales and market share is declining continuously Future

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