Plant Nutrients Inc Essay

1405 WordsJun 9, 20136 Pages
Recommendation Plant Nutrients Inc. (PNI) is operating in an industry requiring constant innovation in order to combat declining prices. In the case of PNI, it is critical that Brian Dunwoodie acknowledge where the company’s competitive advantage lies, and continue to leverage PNI’s ability to sell to small farms well. PNI should incorporate a seed business into its current business model through a strategic partnership with Larson Seeds, giving PNI the ability to offer a complete agronomic input package. The addition of a seed business will position PNI for continued success with small farms, as well as provide a tool to grow their business with medium farms, which account for the majority of crop production in PNI’s market area.…show more content…
Plan Of Action The detailed plan of action can be found in Exhibit 3, in the form of a Gantt chart. The principle actions to implement this alternative include: 1. Entering into a partnership agreement with Larson Seeds 2. Investing in and developing a Research & Development division 3. Hiring and training a new technical expert 4. Building a marketing program to promote sales full input bundle PNI should focus their increased promotional budget on providing additional resources and incentives to the sales force to leverage during direct selling efforts. The sales force will need to get current small- and medium-sized customers to add seeds to their existing services, and form new relationships and contracts with additional medium-sized farms. Exhibit 1: VRINE Analysis of Alternatives Fertilizer Push Decreasing Growth With Wholesale Prices Large Farms Business Valuable Rarity Inimitable/ Non-Substitutable Exploitable Yes No No Yes1 No Add Seed Business Add Precision Agriculture Service Yes Yes3 Yes No4 Yes Yes2 No Yes Reorganize Sales Force Based On Customer Segment Yes Yes Yes Exhibit 2: Analysis of Alternatives Strengths Push Fertilizer • Established presence in fertilizer and Growth With Large chemical businesses Farms • Large farms purchase large amounts of fertilizer yearly • Proven
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