Identify a key competitive advantage of Monsanto. What element of the external environment in which Monsanto operates threatens its future most? Justify
The key competitive advantage of Monsanto is their biotechnology or their genetically modified organisms (GMO). The company maintains to deliver distinctive combination of traits and genetics through molecular breeding. Monsanto analyzes each seed before they are planted which improves the efficiency of the breeding process and the quality of plants. Their GM seeds have increased the quantity availability of crops; helping farmers especially in developing countries increase food production and revenues. They account for 90% of the worlds GM seeds and they also hold 70 to 100% market of certain crops; with high statics, the company is clearly one of the market leaders in their field. Monsanto have used their revenues from their competitive advantage to establish a fund, which funds the company’s projects in Africa, they also support youth programs and also young famers. No company can exist in vacuum; to a certain extent Monsanto is heavily influenced by environmental factors. The greatest external threat to the company’s future is social cultural trends, this constitutes of the general attitude of society towards an industry. There are many changes occurring within the world population and one of those is a move towards a healthier lifestyle; this is a prominent move in the US. Monsanto are faced by the critiques of environmentalists who fear for the health issues that relate to the chemically enhanced products, they believe biotech products are unnatural and that the right standards have not been created to determine the safety of the products. Consumer acceptance of GM foods remains a serious issue that will determine the future of GM foods; however, the information of GM foods is scarce meaning that there is not enough information to support the use or disuse of GM products. Consumers with different...
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