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Marketing and Monsanto

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Monsanto: Linking Core Competencies to Market Opportunity

Case Summary:

Monsanto Co. is an innovative biotechnology company that is currently the world’s largest seed company. Since its inception in 1901, Monsanto has continually reinvented itself to realize growth opportunities in a wide spectrum of marketing environments. In 1981, a shift in strategic focus towards biotechnology has propelled the company to $11.7 billion in annual sales with over 20,000 people in 160 countries. As the world faces a growing population and declining natural resources, Monsanto’s technological innovations with genetically modified seeds have increased crop yields around the world. Although the company has enjoyed significant growth in recent …show more content…

What are the major strengths, weaknesses, opportunities and threats (SWOT) associated with Monsanto?

Monsanto’s strengths include technological innovations in biotechnology anchored by substantial investment in research and development that have produced many patents, and allow the company to react swiftly to changes in the strategic environment. Their presence in 160 countries provides favorable access to distribution networks around the globe.
A major weakness for Monsanto is consumer perception that its products are unhealthy for human consumption and have negative consequences on the environment. Another major weakness for Monsanto is the expiration of their main patent in 2014 of their Roundup-ready soybean. JPMorgan estimates losses of up to $500 million in royalties that the company receives from licensing Roundup-ready soybean to competitors.
According to the United States Department of Agriculture, only 11% of global land surface is considered suitable for agricultural production. With a surging global population and increased land degradation caused by human activity, higher yielding crops with resistance to various environmental conditions will become essential to maintaining an adequate food supply for the world. Monsanto’s technological innovations in biotechnology, and specifically genetically modified seeds, present a unique opportunity to capitalize on one of the world’s great challenges in the 21st century.
Growing consumer

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